Lionsgate has reported impressive financial results for the quarter ending June 30, bolstered by the record-breaking success of the biopic “Michael,” which has emerged as the highest-grossing biographical film of all time, surpassing $1 billion globally. The studio’s Motion Picture segment achieved a remarkable revenue of $587.3 million, more than doubling the figure from the previous year and driving profits to $105 million, the best-ever result in a June quarter.
Financial Highlights
The strong performance in Lionsgate’s film division marks a significant improvement compared to the nominal profit of $2.4 million reported in the same quarter last year. Factors contributing to this success include not only the enormous success of “Michael” but also the solid ancillary performance of other recent theatrical releases, particularly “The Housemaid,” which stars Amanda Seyfried and Sydney Sweeney.
Future Plans for ‘Michael’ Sequel
Building on the momentum of “Michael,” Lionsgate has already initiated plans for a sequel. Film division head Adam Fogelson announced during a quarterly call with analysts that production could commence by the end of this year or early next year, with an anticipated release in late 2027 or early 2028. While he refrained from providing a specific budget for the sequel, Fogelson emphasized that the project would incorporate several previously shot sequences, particularly notable musical numbers.
Television Production Segment Struggles
In contrast to the film division, Lionsgate’s Television Production segment faced challenges, with revenue declining by 34% to $189.3 million and profits dropping by 61% to $10.2 million year-over-year. The company attributed these declines to the timing of episodic deliveries. Nonetheless, Lionsgate remains optimistic, predicting that scripted deliveries will double in fiscal 2027 compared to fiscal 2026, in addition to a boost in revenue and profit from their newly licensed “Power” series on Netflix in the latter half of the year.
Overall Performance
Overall, Lionsgate reported total revenue of $776.6 million for the quarter, reflecting a 48% increase. Operating income reached $25.6 million, a significant turnaround from an operating loss of -$10.6 million recorded a year earlier. However, the studio experienced a net loss attributable to shareholders of $28.8 million, equating to a net loss of 10 cents per diluted share, an improvement compared to last year’s net loss of $94 million.
Strategic Outlook
CEO Jon Feltheimer expressed confidence in the company’s strategic direction, stating, “As we continue to execute our franchise strategy across a deep portfolio of branded intellectual properties, generate increased visibility and stability from our film and television library, and benefit from continued improvement in our operating environment, we are positioned to deliver strong growth in fiscal 2027 and beyond.”
Furthermore, Lionsgate’s trailing 12-month library revenue has reached $987 million, while the backlog of contractual future revenue not yet recognized has increased by 21% year-over-year to $1.5 billion, underscoring the studio’s robust financial standing as it moves forward.
