Lionsgate’s revenues fell during the most recent fiscal quarter, as the media company behind the “Hunger Games” and “John Wick” franchises recorded a loss of $13.9 million.
However, the company did manage to beat Wall Street’s expectations with its earnings bolstered by the growing popularity of its Starz service and through lucrative licensing deals for its older films and television shows. Revenues for the period ending in December topped out at $836.4 million, a 16.2% decline. Lionsgate also recorded net losses of 6 cents per share and adjusted earnings of 21 cents per share.
Analysts had expected Lionsgate to report $776.5 million in revenue, a loss of 11 cents per share, and adjusted earnings per share 21 cents.
Lionsgate also improved its cash position, an important metric during a time when COVID-19 has upended the entertainment business, making film production more expensive and shuttering many movie theaters. Lionsgate said it had $551.5 million in cash and cash equivalents, up from $318.2 million in the year-ago period.
“We’re pleased to report our fourth strong quarter in a row – strong in terms of financial results, global subscriber growth at STARZ and another outsized library performance, all reflecting the continued resilience of our business model,” Lionsgate CEO Jon Feltheimer said in a statement.
Indeed, Lionsgate’s library was a particular source of strength with revenue of $765 million for its second best quarter ever.
Investors seemed to respond positively to the report with Lionsgate’s shares rising in value in after hours trading.