Lionsgate Takes $50 Million Charge in This fall Due to Coronavirus

Lionsgate Entertainment reported a internet loss for the fourth quarter on Thursday that was an enchancment over the earlier 12 months, regardless of the detrimental monetary impacts incurred from the continued coronavirus pandemic.

Lionsgate reported an working lack of $12 million for the fourth quarter and a internet lack of $45 million, or lack of 20 cents per share. During the identical quarter final 12 months Lionsgate reported an working lack of $34 million and a internet lack of $155 million, or a per-share lack of 72 cents. Analysts monitoring the inventory via Yahoo! Finance had forecasted a lack of 6 cents per share.

Revenue for the quarter was $944.three million, up from the $913.7 million the corporate reported a 12 months in the past. Lionsgate’s income was practically in keeping with the $945 million analysts have been anticipating.

“We reported a strong quarter to end a solid fiscal year despite the disruption posed by the COVID-19 global pandemic,” Lionsgate CEO Jon Feltheimer stated in an announcement. “Our Lionsgate family has risen to the challenge of these unprecedented times with resilience, dedication and collaboration. Thanks to their efforts, Starz is continuing to deliver great entertainment to our audiences in the current at home environment, and we’re working closely with all of our content partners to ensure that when production resumes and theaters re-open, we will be ready.”

The studio took a $50.5 million impairment throughout the quarter on account of the continued pandemic and the affect it’s had on the leisure business. The cost included, amongst different issues, $46.zero million mirrored in direct working bills from sure movement image and TV impairments and improvement prices related to modifications in efficiency expectations and the feasibility of venture completions, and prices related to pausing movie and TV manufacturing.

There was additionally a $4.2 million cost mirrored in distribution and advertising and marketing expense, primarily consisting of early advertising and marketing spends for movie releases and occasions that have been canceled or delayed, in addition to roughly $3oo,ooo in restructuring and different prices primarily because of transitioning the Company to a remote-work atmosphere.

“In a number of instances, we have also been able to adapt to these new circumstances by releasing one of our theatrical films earlier on streaming platforms, completing post-production of one of our television series remotely and continuing the development of a number of our television series utilizing virtual writers’ rooms,” the corporate stated in its submitting. “These changes in the way we operate may be helpful to partially offset some of the negative impacts from the pandemic. However, the impact of these changes and the COVID-19 global pandemic are uncertain and cannot be predicted.”

Lionsgate’s movement image division noticed income enhance 10% within the quarter to $393 million thanks primarily to the sturdy dwelling leisure efficiency of “Knives Out.” The solely new theatrical launch within the quarter was “I Still Believe,” which was in theaters for less than 4 days earlier than they closed. Lionsgate was in a position to pivot shortly, releasing the movie in an unique premium video-on-demand window to mitigate the theatrical loss. Overall movie section revenue was $101 million.

Revenue for the media networks section was $358 million, which was primarily unchanged from the prior 12 months quarter, although the $26 million revenue was impacted by Lionsgate’s continued funding in STARZPLAY’s worldwide growth. STARZPLAY has launched in 50 international locations and exceeded subscriber targets for the fiscal 12 months. Domestically, STARZ grew its subscribers base to six.eight million.

The TV manufacturing section income was $258 million and revenue was $22 million pushed partly by sturdy library gross sales.

“Television and streaming consumption across the globe has elevated in addition to dwelling leisure demand. This enhance, nonetheless, is probably not indicative of future outcomes and progress could gradual as governmental and different…