Lions Gate Entertainment Corp (LGF.B) Q2 2025 Earnings Call Highlights: Navigating Challenges ...

GuruFocus News
4 min read

In This Article:

  • Consolidated Revenue: $949 million for the quarter.

  • Adjusted EBITDA: Loss of $18 million.

  • Operating Income: Loss of $89 million.

  • Reported EPS: Loss of 68 per share.

  • Adjusted EPS: Loss of 43 per share.

  • Net Cash Flows Used in Operating Activities: $82 million.

  • Adjusted Free Cash Flow: Use of $132 million.

  • Studio Revenue: $824 million, up 4.3% year over year.

  • Studio Adjusted EBITDA: Loss of $6 million.

  • Trailing 12 Months Library Revenue: $892 million, up 2.5% year over year.

  • Motion Picture Revenue: $407 million, up 2.8% year over year.

  • Motion Picture Segment Profit: $2.6 million.

  • Television Revenue: $417 million, up 5.8% year over year.

  • Television Segment Profit: $24 million.

  • Media Networks Revenue: $347 million.

  • Media Networks Segment Profit: $27 million.

  • North American OTT Subscribers: 12.4 million, down 2.6% year over year.

  • Total North American Subscribers: 20.2 million, sequential decline of 1.15 million.

  • Net Debt: $2.27 billion at the consolidated company.

  • Studio Net Debt: $1.64 billion.

  • Starz Net Debt: $622 million.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Lions Gate Entertainment Corp (NYSE:LGF.B) reported a strong library revenue of nearly $900 million in trailing 12 months, showcasing the strength of its diversified portfolio.

  • The company is making progress in preparing a more diversified film slate for fiscal 2026, including major tentpole projects like 'Michael', 'Ballerina', and 'Now You See Me 3'.

  • Starz is on track to achieve a $200 million segment profit for the fiscal year, supported by successful rate increases and strong programming performance.

  • Lions Gate Entertainment Corp (NYSE:LGF.B) is actively leveraging its IP through various channels, including stage plays and video games, to create additional revenue streams.

  • The company has successfully integrated the E One library, contributing positively to its trailing 12-month library revenue and overall business performance.

Negative Points

  • The company faced financial challenges due to disappointing theatrical box office performance, particularly with the film 'Borderlands'.

  • Lions Gate Entertainment Corp (NYSE:LGF.B) reported a consolidated revenue of $949 million but faced an adjusted EBITDA loss of $18 million and an operating income loss of $89 million.

  • The television group is experiencing a market correction, impacting both scripted and unscripted segments, with buyers ordering fewer shows.

  • The company had to offer voluntary severance and early retirement packages to U.S. employees, with approximately 8% of eligible employees opting in, indicating workforce restructuring.

  • Lions Gate Entertainment Corp (NYSE:LGF.B) revised its fiscal 2025 financial outlook for Lionsgate Studios, forecasting adjusted EBITDA between $300 million to $320 million, down from previous expectations.

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