Lions Gate Entertainment Corp said late Monday that it moved to a profit in its fiscal second quarter due to a gain at its television operations and lower film production costs.
After the markets closed, the Santa Monica independent studio, headquartered in Vancouver, B.C., reported net income of $31.7 million (26 cents a share) for the quarter ended Sept. 30, compared with a net loss of $51.8 million (-44 cents) a year ago. Revenue rose 3 percent to nearly $394 million.
Analysts surveyed by Thomson Reuters on average expected per share net income of 6 cents on revenue of more than $375 million.
Driving the gains was a 30 percent rise in television production revenue. Domestic series licensing rose 14 percent as Lions Gate delivered episodes of Showtime’s “Weeds,” AMC’s “Mad Men” and Starz “Crash.” The company also gained $27.7 million in revenue from its TV Guide Network and TV Guide.com properties acquired earlier this year.
In its movie operations, total motion picture revenue fell 11 percent due to fewer wide releases. But the lighter schedule cut theatrical marketing costs 66 percent to $37.6 million.
“We are on track to meet our financial targets for the year, and we believe that the current performance of our businesses, coupled with growing returns we anticipate from our new investments and the ultimate profitability we expect to achieve from next year's film slate and beyond, positions us for strong financial results in the future,” said Chief Executive Officer Jon Feltheimer in a statement.
Lions Gate shares earlier closed up 31 cents, or 6 percent, to $5.41 on the New York Stock Exchange. They rose another 6 percent in after-market trading.
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