Lionsgate, After Starz Split, Sees Quarterly Revenue Jump 22% to $1.1 Billion and Movie Segment Profit Hitting Highest Level in 10 Years

by

In the opening quarter of 2025, Lionsgate saw a significant increase of 22% in its revenue, with its movie division reaching unprecedented profitability levels over the past ten years. This boost was primarily due to the successful box office runs of “Den of Thieves 2: Pantera” and “Flight Risk,” released during that period.

At the close of the quarter on May 7th, Lionsgate finalized the much-anticipated separation from their premium cable and streaming business with Starz. This new entity is now publicly traded independently. The financial report for this period, which covers Lionsgate’s fourth quarter of fiscal year 2025, does not include earnings from Starz.

In the last three months, Lionsgate has announced an increase in revenue to $1.1 billion (a rise of 22%) and operating income to $94.2 million (from $19.4 million during the same timeframe a year ago). Their net income for shareholders was $21.9 million (equating to 10 cents per diluted earnings per share), which is a significant improvement from the loss of $54.2 million in the corresponding period last year.

Or, more concisely:

Lionsgate’s revenue and operating income have both significantly increased for Q1, with revenue reaching $1.1 billion (up 22%) and operating income at $94.2 million compared to the previous year. Their net income was $21.9 million, contrasting a loss of $54.2 million in the same quarter last year.

Lionsgate CEO Jon Feltheimer expressed satisfaction over a robust quarter, even in challenging conditions, stating, ‘The same factors that powered this quarter – exceptional library performance, a versatile film business strategy, financial prudence, and the capacity to produce top-tier TV content for an evolving market – will remain our keys to continued success. As a solo studio, we’ll continue to generate extra value for our shareholders by leveraging these strengths.’

Lionsgate’s Motion Picture division saw a significant surge in revenue, rising by 28% to reach $526.4 million. Meanwhile, the segment profit experienced a substantial jump of 65%, reaching $135.3 million. This quarter marked the highest profit for the motion picture segment in a decade. The impressive box office performance of films like “Den of Thieves 2: Pantera” and “Flight Risk”, along with increased non-theatrical content deliveries, strong demand for their library, and reduced promotional expenses (P&A spend), were key contributors to this record profit.

As a movie enthusiast, I’m thrilled to share that the Television Production segment’s revenue surged by 16%, reaching an impressive $543.3 million in the recent quarter. However, it’s important to note that the segment profit dipped to $40.6 million. The revenue surge was primarily due to a significant rise in episodic deliveries compared to the previous year’s strike-affected March quarter.

The dip in profit, on the other hand, was a result of a challenging comparison with a major content library sale that took place in the same quarter last year. In this exciting period, our TV group secured some key series renewals. “Ghosts” was picked up for its fifth and sixth seasons at CBS, “The Rookie” was renewed for an eighth season on ABC, “Sherri Shepherd’s Sherri” was renewed for a fourth season in syndication, and “Yellowjackets” was recently renewed for a fourth season by Showtime. It’s truly a golden age for television!

The business’s income from its library during the past twelve months hit an all-time high of $956 million, marking an 8% increase compared to the same period last year. In the March quarter, this library revenue reached a new peak of $340 million, primarily due to licensing deals for “The Rookie” with Disney+ and “The Chosen” with Amazon Prime Video.

Lionsgate’s Television Production sector covers two main aspects: licensing Starz original series to their own business and distributing these productions, along with licensed products, in the wider market. In the first quarter of 2025, revenue from the Starz business surged by 67%, amounting to $206.2 million compared to the same period last year.

Read More

2025-05-22 23:46