Tags: Lions Gate | Profit | TV | Production

Lions Gate Profit Beats Estimates on TV Production Boost

Thursday, 06 Nov 2014 06:52 PM

Lions Gate Entertainment Corp., the studio behind the “Hunger Games” films, reported fiscal second-quarter profit that beat expectations, driven by growth in production of television series such as “Manhattan.”

Profit, excluding some items, rose to 23 cents a share from 18 cents a share a year earlier, Santa Monica, California-based Lions Gate said Thursday in a statement. Analysts had forecast profit of 15 cents a share, the average of 12 estimates compiled by Bloomberg. Revenue rose 11 percent to $553 million in the period ended Sept. 30.

Film revenue dropped in the period, which included the “The Expendables 3” in August. The studio is set to release “Hunger Games: Mockingjay Part 1,” on Nov. 21, the third of four films in the series. TV sales more than doubled to $155 million, as the company delivered 55 episodes of shows that included “Houdini,” “Nashville” and “Orange Is the New Black.” The company also cited home-entertainment sales.

“Our entire portfolio of businesses contributed to our solid results in the quarter, driven by a particularly strong performance from our television operations,” Chief Executive Officer Jon Feltheimer said in the statement.

Theatrical revenue declined from the year-earlier period, which included more releases. Pay-television sales from “The Hunger Games: Catching Fire” and “The Twilight Saga: Breaking Dawn -- Part 1” helped to counter the drop. “Mockingjay Part 1” will open on more than 1,000 screens.

Profit Margins

The company turned in better-than-expected profit margins at both the film and TV units, said Benjamin Mogil, an analyst with Stifel & Co., in a research note after the results. He maintained his buy rating on the stock.

Lions Gate shares rose on the news, which was reported after regular stock trading ended. Shortly before 7 p.m. in New York, the shares were up 3.7 percent to $33.25. The shares were little changed at $32.06 at the close.

The company highlighted growth at its U.K. operations, which recorded a 38 percent revenue increase in the quarter to $37.3 million.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Companies
Lions Gate Entertainment Corp., the studio behind the "Hunger Games" films, reported fiscal second-quarter profit that beat expectations, driven by growth in production of television series such as "Manhattan."
Lions Gate, Profit, TV, Production
331
2014-52-06
Thursday, 06 Nov 2014 06:52 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved