Lionsgate posted a stronger than expected earnings for the company’s fourth fiscal quarter, which covers the first quarter of the calendar year. Revenue came in at $1.09 billion, $92 million higher than Wall Street’s estimates, with earnings at 21 cents per share rather than an expected loss of 9 cents per share.
Lionsgate’s studio division was a primary factor in the sunny results, powered by stronger-than-expected results from their movie releases in 2023 thus far. Mid-budget releases PLANE and JESUS REVOLUTION have both overperformed by earning more than $50 million at the box office, while JOHN WICK: CHAPTER 4 has soared to over $428 million.
The studio took in $823.6 million overall, an increase of more than 25% compared with last year’s results. Looking forward, the studio’s upcoming theatrical releases THE HUNGER GAMES: BALLAD OF SONGBIRDS & SNAKES, JOY RIDE and THE EXPENDABLES are all showing excellent promise as well.
While revenue growth at the company’s streaming divisions Starz and Lionsgate+ have been less impressive, their profits have more than doubled to $73.6 million. This is due to a pullback in spending on marketing and content, mirroring the cost-cutting strategy in the streaming divisions of most major studios.
The relative strength of Lionsgate’s studio business has also insulated it from the immediate impact of the Hollywood writer’s strike, making its revenues less reliant on creating new streaming content. In an interview with Deadline, Lionsgate CFO Jimmy Barge said he saw, “little to no financial impact” from a three-month WGA strike.