Lionsgate Q3 revenue hits $724.3m, net loss widens to $46.2m  

CALIFORNIA: Lionsgate reported quarterly revenue of more than $724 million, yet the Hollywood studio slipped to a net loss exceeding $46 million as rising marketing costs erased gains from an otherwise robust film slate.

Adjusted earnings missed analyst expectations, with the shortfall largely attributed to aggressive promotional spending behind theatrical releases. The motion picture division led growth, posting a 35 per cent jump in revenue to $421 million, but profitability was squeezed as costs climbed sharply.

Television production revenue fell 25 per cent to $303 million, which the company attributed to the timing of programme deliveries rather than weakening demand.

The standout performer remained Lionsgate’s content library. Revenue from its catalogue of more than 20,000 titles rose 10 per cent on a trailing 12-month basis to over $1 billion, marking a fifth consecutive quarter of record growth and reinforcing the library’s status as the company’s most reliable cash generator.

Beyond the numbers, Lionsgate sent a clearer signal to investors by confirming it will allow its shareholder rights plan, commonly known as a ‘poison pill,’ to expire in May. The move leaves the studio more exposed to takeover approaches at a time when consolidation pressures continue to build across the media industry.

While Lionsgate continues to back a pipeline of IP-driven films, the easing of takeover defences suggests management sees greater value in the company’s scale, production infrastructure and extensive library than in remaining independent.