Lionsgate headquarters in Santa Monica.

Lionsgate headquarters in Santa Monica.

Lions Gate Entertainment Corp. reported a decline in quarterly revenue in its Q2 2022 earnings as the company considers spinning off streaming service Starz.

Releasing its earnings report for the second quarter of fiscal year 2022 Nov. 4, the Santa Monica-based entertainment company announced revenues of $887.8 million, a decline from $901.2 million in Q1.

Conversely, revenue from Lionsgate’s 17,000-title film and television library, including its acquisition of the 200-title Spyglass Media Corp. library, climbed to $784 million for the previous 12 months, an increase of $44 million from the previous quarter.

But even as the company touted 1.3 million global subscriber gains from the previous quarter through Starz, Lionsgate made a regulatory filing to explore a separation of the pay TV and streaming business “including, but not limited to, a full or partial spin-off, split-off, issuance of a tracking stock or other transactions,” per the document.

“While we continue to realize substantial synergies from bringing Lionsgate and Starz together, we also see the opportunity to potentially unlock significant shareholder value under a scenario where investors have the ability to value our studio assets and Starz separately,” Lionsgate Vice Chairman Michael Burns said on the company’s earnings call.

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