A silver lining for streaming Lionsgate was its financial fourth quarter results in an otherwise low-income report, which showed lower revenue and earnings than Wall Street expected.
Total revenue was $ 930 million at the end of March 31, earnings per share of 6 cents. Analysts called for $ 961 million and 8 cents a share in this key metric.
The company surpassed analysts’ consensus expectations of adding 3 million streaming subscribers during this period, working on 4.4 million to reach a total of 35.8 million.
Overall, 12.8 million subscribers are responsible for the StarzPlay Arabia consortium, with the rest at Starz. Starz subscriber levels increased 47% year over year, while StarzPlay Arabia almost doubled that rate.
Starz, a premium network brand acquired by Lionsgate in 2016, has been in talks in recent months to sell or possibly acquire a stake by a new owner. Among the names in discussion are Roku, Vivendi and private equity giant Apollo.
Battered shares of Lionsgate, which has been trading at their lowest point since the last week of 2020, closed 4% lower at .5 10.57 on the trading day. They dropped another fraction in hourly trading after the earnings news.
In an official earnings release, CEO John Felthimer called for a “significant reduction in churning” in the company’s streaming operations. Sturge has increased its original output, many of which have now been created in-house by Linesgate, with the goal of making streaming services more sticky and improving the network’s economy as a whole.
Felthaimer said the fiscal year was “one of the best materials we’ve had in years because we continue to create significant long-term value.”