Home entertainment drives Lionsgate's Q2 revenues

MUMBAI: US film and television company Lionsgate has reported second quarter revenue of $707 million, EBITDA of $104.0 million, adjusted EBITDA of $109.7 million and net income of $75.5 million or $0.56 per share for the second quarter of fiscal 2013 (quarter ended September 30, 2012).

Revenue of $707.0 million in the second quarter increased by 97 per cent compared to $358.1 million in the prior year quarter, driven by strong home entertainment revenue from the global blockbuster ?The Hunger Games? in packaged media and on demand and digital, domestic theatrical box office revenue from films in the quarter that included ?The Possession?, ?The Expendables 2?, ?Step Up Revolution? and ?Madea?s Witness Protection? (released at the end of June), as well as strong growth in international revenue.

EBITDA of $104 million and adjusted EBITDA of $109.7 million in the second quarter compared to EBITDA of negative $(6.9) million and adjusted EBITDA of negative $(13.4) million in the prior year quarter.

Net income of $75.5 million in the second quarter compared to net loss of $(25.3) million in the prior year quarter. Profitability and EBITDA growth in the quarter was largely attributable to the strong theatrical box office and home entertainment performance of several of the Company?s feature films, including the DVD and digital release of the first film in ?The Hunger Games? franchise and the domestic theatrical box office performance of ?The Possession? as well as strong international results.

The company also reported improved overall margins in the quarter.

Basic net income per common share for the second quarter was $0.56 on 134.4 million weighted average common shares outstanding, compared to basic net loss per common share of $(0.19) on 133.8 million weighted average common shares outstanding in the prior year quarter.

Lionsgate?s film backlog, or already contracted future revenue not yet recorded, was a record $1.2 billion at 30 September , 2012.

Lionsgate CEO Jon Feltheimer said, "The quarter reflected many of the core values that have driven our growth over the past 12 years ? creation and renewal of major film franchises, strong and consistent library performance and contributions from our diverse mix of businesses worldwide. "With the home entertainment release of the first film in our ?Hunger Games? franchise making significant contributions to our results in the quarter, we?re clearly on track to meet or exceed our expectations this year."

Overall motion picture revenue for the second quarter was $608 million, an increase of 178 per cent from the prior year quarter reflecting gains in all categories. Within the motion picture segment, theatrical revenue in the quarter was $116.2 million, a fivefold increase from the prior year second quarter, attributable to the box office performance of ?The Possession?, ?The Expendables 2?, ?Step Up Revolution? and ?Madea?s Witness Protection?released in June.

Lionsgate?s home entertainment revenue from both motion pictures and television was $277.8 million in the second quarter, a 59 per cent increase from the prior year quarter driven by the home entertainment releases of ?The Hunger Games?, ?Cabin In The Woods?, ?What To Expect When You?re Expecting?, ?Safe? and ?Friends With Kids? from the company?s managed brands business.

Television revenue included in motion picture revenue was $35.5 million in the second quarter, an increase of 26 per cent from the prior year quarter.

International motion picture revenue of $108 million (excluding Lionsgate U.K.) for the second quarter increased more than fourfold from the prior year quarter driven by continuing revenue from the worldwide theatrical release of ?The Hunger Games? as well as revenue contributions from ?Cabin In The Woods?, ?What To Expect When You?re Expecting?, ?Step Up Revolution? and ?Cold Light Of Day?.

Lionsgate UK revenue was $48.4 million, an increase of 120 per cent from the prior year quarter, on the strength of a diversified theatrical slate driven by ?The Hunger Games?, ?The Expendables 2? and ?Abduction?, Lionsgate UK?s ?Salmon Fishing In The Yemen? and the third-party film ?Magic Mike?.

Television production revenue was $99 million in the second quarter, a decline of 29 per cent compared to the prior year quarter, as increases in domestic series licensing from Lionsgate Television were offset by fewer deliveries from the company?s Debmar-Mercury syndication arm and decreased digital media revenue compared to the prior year quarter that included the delivery of the first four seasons of ?Mad Men? to Netflix.