Lions Gate Entertainment (LGF.A
24.50, +1.15) is higher by 4.9% after beating fourth quarter earnings
The media company reported above-consensus fourth quarter earnings of $0.25/share on a 17.2% year/year decline in revenue to $1.04 bln, which matched market expectations.
Looking at the segment breakdown, Media Networks revenue grew 5.0% to $1.53 bln thanks to over-the-top revenue growth, a 101% increase in over-the-top subscribers, and revenue from worldwide digital media licensing arrangements. Segment operating profit grew 5.0% to $469 mln.
Motion Pictures revenue declined 11.0% to $61.30 mln due to a smaller release slate. Segment operating profit grew 36.0% to $179 mln.
Television Production revenue declined 4.5% year/year to $805 mln while segment operating profit increased 6.0% to $67 mln. The television production segment is likely being weighed down by competition from Netflix (NFLX).
The company ended the quarter with a backlog of $1.20 bln.
Lions Gate's debt load declined by 18.7% year-over-year to $2.48 bln while film obligations and production loans grew 47.7% to $171.30 mln.
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