Shares of Lions Gate Entertainment Corp. (LGF.A) surged 10.3% in after-hours trading on Thursday following the company’s unexpected second-quarter profit announcement. Despite the negative impact of the strike earlier in the year, the TV, film, and media giant maintained its full-year outlook.
Lions Gate reported a net loss of $887.9 million, or $3.79 per share, compared to a loss of $1.81 billion, or $7.95 per share, in the same quarter last year. However, revenue increased to $1.02 billion from $875.2 million in the prior-year quarter. The adjusted earnings per share came in at 21 cents, surpassing analysts’ expectations. FactSet analysts had predicted an adjusted per-share loss of 5 cents on revenue of $1.01 billion.
Film and TV Revenues
The studio and film divisions experienced a boost in revenue, primarily due to the strong performance of films like “John Wick: Chapter Four” in the “home entertainment” sector. On the other hand, TV production revenues declined by 9% due to disruptions caused by the strike.
Domestic Streaming Growth
Serendipitously, domestic streaming revenue showed significant growth during the quarter.
Both writers and actors in Hollywood have reached agreements with studios, resolving the strike issue.