Lionsgate posts $24 million loss, comes in under Wall Street projections this quarter

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https://variety.com/2019/film/news/l...ns-1203224797/

Lionsgate has posted a quarterly loss and its revenues and operating income have come in under Wall Street projections, despite growth from its premium cable channel, Starz.

The studio reported a net loss of $24 million, or 11 cents a share, with adjusted operating income of $103 million for its fourth fiscal quarter ended March 31. The earnings per share of 11 cents came in well short of the consensus outlook for 19 cents.

Revenues totaled $914 million, or $22 million under the consensus estimate. Starz reported 24.7 million overall domestic subscribers in the quarter, up 1.2 million from the year-ago quarter, driven by strong over-the-top to more than 4 million subscribers. Starz CEO Chris Albrecht left the company in February.

Starz has been the subject of recent speculation with CBS rumored to have made a $5 billion offer that was spurned. Starz was acquired by Lionsgate in 2016 for $4.4 billion.

During the conference call with Wall Street analysts following the earnings report, Lionsgate CEO Jon Feltheimer said the company does not comment on mergers and acquisitions rumors. Instead, he touted the growth plans for Starzplay streaming service outside the United States with plans for operations in 51 countries by July, achieving profitability by fiscal 2023 with as many as 25 million subscribers. He added that Starzplay Arabia has been particularly successful.

The results did not include the unexpectedly strong box office performance by “John Wick: Chapter 3 — Parabellum,” which opened on May 17 and represents the studio’s first hit since 2017’s “Wonder.” Lionsgate has already green-lit “John Wick 4” for release in 2021.

Things are not looking bright for Lionsgate. They've already done 2 rounds of layoffs, 46 people total, this year alone.

https://variety.com/2019/film/news/l...fs-1203158297/

Hopefully we don't see a buyout, I for one don't want to see their 4k catalog releases end, and have consistently enjoyed many of their theatrical films. Plus of course more studio choice is always nice. What're your guys thoughts? Think they can save themselves or doomed to fail? Imo focusing more on Starz is probably their best bet, as it's had growth.