LIONSGATE AND LIONSGATE STUDIOS REPORT RESULTS FOR SECOND QUARTER FISCAL 2025

Lionsgate Revenue was $948.6 Million

Net Loss Attributable to Lionsgate Shareholders was $163.3 Million or $0.68 Diluted Net Loss Per Share

Adjusted Net Loss Attributable to Lionsgate Shareholders was $102.5 Million or $0.43 Adjusted Diluted Net Loss Per Share

Lionsgate Operating Loss was $88.6 Million; Adjusted OIBDA Loss was $17.7 Million

Trailing 12-Month Library Revenue Grew to $892 Million

SANTA MONICA, Calif. and VANCOUVER, BC, Nov. 7, 2024 /PRNewswire/ — Lions Gate Entertainment Corp. (NYSE: LGF.A, LGF.B) (“Lionsgate”) and Lionsgate Studios Corp. (Nasdaq: LION) (“Lionsgate Studios”) today reported second quarter results for the quarter ended September 30, 2024.  This press release includes consolidated financial results for parent company Lionsgate as well as operating results for Lionsgate Studios (also referred to as the “Studio Business”), comprised of the Motion Picture and Television Production segments. 

Lionsgate reported second quarter revenue of $948.6 million, operating loss of $88.6 million, and net loss attributable to Lionsgate shareholders of $163.3 million or $0.68 diluted net loss per share on 239.3 million diluted weighted average common shares outstanding. Adjusted net loss attributable to Lionsgate shareholders in the quarter was $102.5 million or $0.43 adjusted diluted net loss per share on 239.3 million diluted weighted average common shares outstanding.  Adjusted OIBDA loss was $17.7 million in the quarter. 

“In a transitional, disrupted and difficult year for our industry, we reported disappointing financial results in the quarter,” said Lionsgate and Lionsgate Studios CEO Jon Feltheimer.  “Our performance underscores the need to adhere even more rigorously to the risk mitigated business models, slate diversification and strict financial discipline that have always served us well.  The combination of a return to strong content slates, the continued stellar performance of our film and television library and sure-handed execution will put us back on the path to solid growth and shareholder value creation. We’re pleased to report STARZ remains on track to reach its full year target of $200 million Adjusted OIBDA and remains well-positioned for the upcoming separation of our Studio and STARZ businesses.” 

Trailing 12-month library revenue was $892 million, up 3% from last year’s second quarter.

Lionsgate continues to be on track for the full separation of its Studio and STARZ businesses by the end of the calendar year subject to the timing of regulatory approvals.

Lionsgate noted that after the quarter approximately 8% of its eligible U.S. employees elected to take advantage of voluntary severance and early retirement packages as it continues to streamline its business by adjusting to the economic realities of the marketplace.

Second Quarter Results

The Studio Business, comprised of the Motion Picture and Television Production segments, reported revenue of $823.7 million, an increase of 4% from the prior year quarter.  Studio operating loss was $34.8 million and Adjusted OIBDA loss was $6.3 million, compared to $76.0 million operating income and $97.9 million Adjusted OIBDA in the prior year quarter.

Motion Picture segment revenue increased by 3% to $407.1 million and segment profit decreased to $2.6 million.  The year-over-year revenue increase was due to the increase in wide theatrical releases, while the decline in segment profit was driven by the underperformance of Borderlands as well as the soft performance of other wide theatrical releases in the quarter. 

Television Production segment revenue increased 6% to $416.6 million while segment profit decreased to $24.4 million. Revenue growth was driven by higher series deliveries to STARZ, while segment profit was impacted by lingering effects of last year’s strikes in a heavily backloaded year. 

Media Networks North American revenue of $343.0 million was comparable to the prior year, as higher ARPU was offset by lower subscribers.  Segment profit decreased to $26.9 million on higher content amortization. North American OTT subscribers declined 2.6% to 12.4 million compared to the prior year quarter while, on a sequential basis, North American OTT subscribers declined by 800,000.  Subscriber totals were impacted as expected in the quarter by the $1.00 price increase initiated for existing U.S. customers in the month of September.  Management believes it will return to sequential OTT subscriber growth in North America in the December quarter.

Lionsgate and Lionsgate Studios senior management will hold their analyst and investor conference call to discuss fiscal 2025 second quarter results today, November 7^th, at 5:00 PM ET/2:00 PM PT.  The consolidated financial results of Lionsgate and the operating results of Lionsgate Studios’ segments will be discussed on a single call.  Interested parties may listen to the live webcast by visiting the events page on either the Lionsgate Investor Relations website or the Lionsgate Studios Investor Relations website.  Alternatively, interested parties can join the webcast directly via the following link.  A full replay will become available this evening by clicking the same link. 

About Lionsgate Studios

Lionsgate Studios (Nasdaq: LION) is one of the world’s leading standalone, pure play, publicly-traded content companies. It brings together diversified motion picture and television production and distribution businesses, a world-class portfolio of valuable brands and franchises, a talent management and production powerhouse and a more than 20,000-title film and television library, all driven by Lionsgate’s bold and entrepreneurial culture.

About Lionsgate

Lionsgate (NYSE: LGF.A, LGF.B) owns approximately 87.8% of the outstanding shares of Lionsgate Studios Corp. (Nasdaq: LION), one of the world’s leading standalone, pure play, publicly-traded content companies, as well as the premium subscription platform STARZ.

For further information, investors should contact:

Nilay Shah

310-255-3651

nshah@lionsgate.com

For media inquiries, please contact:

Peter D. Wilkes

310-255-3726

pwilkes@lionsgate.com

The matters discussed in this press release include forward-looking statements, including those regarding the performance of future fiscal years.  Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including, but not limited to: statements about our ability to effectuate the proposed separation of Lionsgate Studios and the STARZ Business (the “Proposed Separation”); the anticipated benefits of the Proposed Separation; unexpected costs related to the Proposed Separation; the substantial investment of capital required to produce and market films and television series; budget overruns; limitations imposed by our credit facilities and notes; unpredictability of the commercial success of our motion pictures and television programming; risks related to acquisition and integration of acquired businesses; the effects of dispositions of businesses or assets, including individual films or libraries; the cost of defending our intellectual property; technological changes and other trends affecting the entertainment industry; potential adverse reactions or changes to business or employee relationships; the impact of global pandemics on our business; weakness in the global economy and financial markets, including a recession and past and future bank failures; wars, terrorism and multiple international conflicts that could cause significant economic disruption and political and social instability; labor disruptions and strikes; and the other risk factors set forth in Lionsgate’s and Lionsgate Studios’ public filings with the Securities and Exchange Commission.  The companies undertake no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.

Additional Information Available on Websites

The information in this press release should be read in conjunction with the financial statements and footnotes contained in Lionsgate’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which will be posted on Lionsgate’s website at http://investors.lionsgate.com/, and Lionsgate Studio’s Quarterly Report on Form 10-Q, which will be posted on Lionsgate Studios’ website at https://investors.lionsgatestudios.com/. Trending schedules containing certain financial information will also be available.