Lionsgate Surpasses Revenue Estimates with $1 Billion, Reduces Net Loss to $886.2 Million in Q2

Rising revenues driven by media networks like Starz and hits like “John Wick: Chapter Four”, with reduced loss attributed to asset writedowns and restructuring, as the company explores possible divestment options.

• Despite a challenging operating environment, Lionsgate managed to beat revenue estimates by achieving $1.01 billion in Q2 2023, largely attributed to media networks such as Starz and box office hits such as 'John Wick: Chapter Four'.
• The company reduced its net loss to $886.2 million in Q2, compared to a net loss of $1.8 billion in the same period the previous year—this was mainly due to restructuring and asset writedown operations, particularly within its media networks division.
• Lionsgate is considering divesting options for its premium cable and streaming platform Starz, potentially separating it from its studio operations as part of a plan to create two standalone companies—this decision is aimed at helping investors value the Starz and studio assets separately.
• The streaming services of Starz made a noteworthy contribution as they added 480,000 new subscribers in Q2, bringing the total number to 26.8 million by the end of September.
• Lionsgate has recently acquired certain assets of Entertainment One from Hasbro for $500 million and is looking forward to completing the transaction later this year, further strengthening its studio business.

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