Lionsgate Reverses Loss to Register Fiscal 3Q Profit

Media Networks show 6% gain

After losing money a year ago, Lionsgate reported a profit for the fiscal third quarter.

Net income was $193 million, or 92 cents a share, compared to a loss of $31 million, or 19 cents a share a year ago.

The earnings include a one-time tax benefit of $165 million from the new tax laws.

Revenue rose 52% to $1.14 billion.

Related: 21st Century Fox Gets Earnings Boost on Taxes

“Our strong performance in the quarter, with robust contributions from our Motion Picture Group and Starz, keeps us on track for our fiscal year expectations,” said CEO Jon Feltheimer. 

The company resumed its cash dividend, paying stockholders 9 cents a share.

“Despite a disruptive operating environment, the quarter shows our success in creating premium content that cuts through the clutter of a crowded marketplace and our ability to supply it to a diverse array of media companies,” Feltheimer said.

Lionsgate said its Media Networks segment registered a 6% increase in segment profits to $128.3 million. Revenues were up 6% driven by higher over-the top revenue growth and worldwide digital media licensing agreements. That was offset in part by subscriber losses at some MVPDs.

Television production profits dropped to $22.7 million from $27.5 million a year ago. Revenues fell to $227.3 million from $231 million as a decrease in syndicated licensing revenues offset deliveries of television series.

Motion picture profits were flat.