Lionsgate’s Quarterly Losses Narrow as CEO Lauds AI Innovation
Lionsgate, a major player in the entertainment industry, has recently unveiled its quarterly earnings following its separation from Starz. The studio’s CEO, Jon Feltheimer, emphasized the transformative potential of artificial intelligence (AI) during discussions with Wall Street.
Lionsgate’s Financial Performance Overview
- Quarterly Revenue: $475.1 million, reflecting a 21.3% decline from $604 million in the previous year.
- Operating Loss: $46 million, a decrease from the $100.7 million loss recorded the prior year.
- Net Loss: $113.5 million, improving from $163.3 million from the same quarter last year.
- Motion Picture Revenue: $276.4 million vs. $409.4 million the previous year.
- Television Revenue: $198.7 million, down from $416.6 million a year earlier.
AI Innovations and Future Strategies
In 2024, Lionsgate entered a partnership with Runway to use AI for training models on its extensive content library. This initiative aims to streamline the creation of new material, boosting productivity and cost efficiency. Feltheimer assured stakeholders of his commitment to ethical AI practices, stressing the necessity of establishing safeguards to protect copyrighted content.
Impact of Theatrical Releases on Revenue
The drop in revenue is attributed to the limited number of wide theatrical releases during the quarter. The studio launched only two films, “The Long Walk” and “The Strangers – Chapter 2,” compared to five releases from the prior year. The profit from the motion picture segment rose to $30.5 million, up from $1.7 million in the same quarter last year.
Television Segment Performance
Lionsgate’s television segment also faced challenges, with revenues falling to $198.7 million. Segment profits decreased to $12.5 million from $24.4 million in the same period last year. The studio noted that the decline was tied to the timing of episodic deliveries.
Upcoming Projects and Acquisitions
Looking ahead, Lionsgate aims to regain momentum with highly anticipated projects, including “The Hunger Games: Sunrise on the Reaping” and a biopic entitled “Michael,” focusing on Michael Jackson. Moreover, the company has secured a deal with Millennium for all future film and television rights to “The Expendables” franchise and global distribution rights to the next “Rambo” film.
Despite these plans, Lionsgate shares dropped over 7% in after-hours trading, indicating ongoing market concerns. As the company navigates these challenges and leverages AI innovations, its next moves will be closely watched by analysts and investors alike.
