LIONSGATE REPORTS RESULTS FOR FOURTH QUARTER FISCAL 2025


LIONSGATE REPORTS RESULTS FOR FOURTH QUARTER FISCAL 2025

Revenue was $1.1 Billion, up 22% Year Over Year

Net Income Attributable to Shareholders was $21.9 Million or $0.10 Diluted Earnings Per Share

Adjusted Net Income Attributable to Shareholders was $60.9 Million or $0.21 Adjusted Diluted Earnings Per Share

Operating Income was Up Significantly to $94.2 Million

Adjusted OIBDA was Up 49% to $138.3 Million

Motion Picture Segment Profit and Studio Adjusted OIBDA Reached Highest Quarterly Levels in 10 Years

Trailing 12-Month Library Revenue Grew 8% to an All-Time High of $956 Million Driven by Record Fourth Quarter

SANTA MONICA, Calif. and VANCOUVER, BC, May 22, 2025 /PRNewswire/ -- Lionsgate Studios Corp. (NYSE: LION) ("Lionsgate") today reported fourth quarter results for the quarter ended March 31, 2025. Following the quarter, Lions Gate Entertainment Corp. fully separated its Lionsgate and STARZ businesses. This press release contains financial results for Lionsgate, which is comprised of its Motion Picture and Television Production segments.

The Company reported fourth quarter revenue of $1.1 billion, operating income of $94.2 million, and net income attributable to Lionsgate shareholders of $21.9 million or $0.10 diluted earnings per share on 288.7 million diluted weighted average common shares outstanding. Adjusted net income attributable to Lionsgate shareholders in the quarter was $60.9 million or $0.21 adjusted diluted earnings per share on 288.7 million diluted weighted average common shares outstanding. Adjusted OIBDA was $138.3 million in the quarter, up 49% year-over-year. Net cash flow provided by operating activities for the quarter was $255.9 million. Adjusted free cash flow for the quarter was $395.3 million.

"We are pleased to report a strong quarter despite a difficult operating environment," said Lionsgate CEO Jon Feltheimer. "The same strengths that drove the quarter - another outsized library performance, a diversified motion picture business model, fiscal discipline and the ability to deliver premium television programming to a changing mix of buyers - will continue to be the catalysts of our success as a standalone studio with the ability to create significant incremental value for our shareholders."

Trailing 12-month library revenue was $956 million, up 8% relative to last year's fourth quarter trailing 12-month library revenue, with a record $340 million revenue fourth quarter driven by licensing sales of The Rookie to Disney+ and The Chosen to Amazon Prime.

Fourth Quarter Segment Results

Motion Picture segment revenue grew 28% to $526.4 million, while segment profit grew 65% to $135.3 million. Quarterly motion picture segment profit was the highest in 10 years, driven by the box office success of the midbudget films Den of Thieves 2: Pantera and Flight Risk, an increase in non-theatrical content deliveries, robust library demand, and lower P&A spend.

Television Production segment revenue increased 16% to $543.3 million while segment profit decreased to $40.6 million. Revenue growth was driven by a substantial increase in episodic deliveries relative to last year's strike-impacted March quarter, while the segment profit decline reflected a difficult comparison with a library sale of content in last year's fourth quarter.

Lionsgate senior management will hold its analyst and investor conference call to discuss fiscal 2025 fourth quarter results today, May 22nd, at 5:00 PM ET/2:00 PM PT. Interested parties may listen to the live webcast by visiting the events page on the Lionsgate Investor Relations website. Alternatively, interested parties can join the webcast directly via the following link. A full replay will become available this evening by clicking the same link.

About Lionsgate

Lionsgate (NYSE: LION) is one of the world's leading standalone, pure play, publicly-traded content companies. It brings together diversified motion picture and television production and distribution businesses, a world-class portfolio of valuable brands and franchises, a premier talent management and production powerhouse at 3 Arts Entertainment and a more than 20,000-title film and television library, all driven by Lionsgate's bold and entrepreneurial culture.

For further information, investors should contact:

Nilay Shah

310-255-3651

[email protected]

For media inquiries, please contact:

Peter D. Wilkes

310-255-3726

[email protected]

The matters discussed in this press release include forward-looking statements, including those regarding the performance of future fiscal years. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including, but not limited to: the substantial investment of capital required to produce and market films and television series; budget overruns; limitations imposed by our credit facilities and notes; unpredictability of the commercial success of our motion pictures and television programming; risks related to acquisition and integration of acquired businesses; the effects of dispositions of businesses or assets, including individual films or libraries; the cost of defending our intellectual property; technological changes and other trends affecting the entertainment industry; potential adverse reactions or changes to business or employee relationships; weakness in the global economy and financial markets, including a recession, bank failures and general economic uncertainty; wars, terrorism and multiple international conflicts that could cause significant economic disruption and political and social instability; labor disruptions and strikes; the volatility of currency exchange rates; our ability to manage growth; the effects of competition on our future business; the impact of and changes in governmental regulations or the enforcement thereof, tax laws and rates, accounting guidance and similar matters in regions in which we operate or will operate in the future; international, national or local economic, social or political conditions that could adversely affect our business; the effectiveness of our internal controls and our corporate policies and procedures; changes in personnel and availability of qualified personnel; the volatility of the market price and liquidity of our common shares; and the other risk factors set forth in Lionsgate's public filings with the Securities and Exchange Commission. The companies undertake no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.

Additional Information Available on Websites

The information in this press release should be read in conjunction with the financial statements and footnotes contained in Lionsgate's Annual Report on Form 10-K for the year ended March 31, 2025, which will be posted on Lionsgate's website at http://investors.lionsgate.com/. Trending schedules containing certain financial information will also be available.

LIONSGATE STUDIOS CORP.

CONSOLIDATED BALANCE SHEETS

March 31,

2025

March 31,

2024

(Unaudited, amounts in millions)

ASSETS

Cash and cash equivalents

$ 205.7

$ 277.0

Accounts receivable, net

576.0

688.6

Due from Starz Business

215.0

33.4

Other current assets

359.2

373.1

Total current assets

1,355.9

1,372.1

Investment in films and television programs, net

1,992.6

1,929.0

Property and equipment, net

34.1

37.3

Investments

77.8

74.8

Intangible assets, net

20.8

25.7

Goodwill

808.5

811.2

Other assets

825.5

852.9

Total assets

$ 5,115.2

$ 5,103.0

LIABILITIES

Accounts payable

$ 248.2

$ 246.7

Content related payables

32.8

41.4

Other accrued liabilities

219.5

282.4

Participations and residuals

642.4

647.8

Film related obligations

1,617.8

1,393.1

Debt - short term portion

215.6

860.3

Deferred revenue

235.5

170.6

Total current liabilities

3,211.8

3,642.3

Debt

1,457.4

923.0

Participations and residuals

409.3

435.1

Film related obligations

365.3

544.9

Other liabilities

413.9

452.5

Deferred revenue

169.1

118.4

Deferred tax liabilities

11.3

13.7

Total liabilities

6,038.1

6,129.9

Commitments and contingencies

Redeemable noncontrolling interests

93.7

123.3

EQUITY (DEFICIT)

Common shares, no par value, unlimited authorized, 288.7 shares issued (March 31, 2024-

253.4 shares issued)

311.9

--

Accumulated deficit

(1,418.2)

(1,249.1)

Accumulated other comprehensive income

60.9

96.7

Total Lionsgate Studios Corp shareholders' equity (deficit)

(1,045.4)

(1,152.4)

Noncontrolling interests

28.8

2.2

Total equity (deficit)

(1,016.6)

(1,150.2)

Total liabilities, redeemable noncontrolling interests and equity (deficit)

$ 5,115.2

$ 5,103.0

LIONSGATE STUDIOS CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Year Ended

March 31,

March 31,

2025

2024

2025

2024

(Unaudited, amounts in millions, except per share amounts)

Revenues:

Revenue

$ 863.5

$ 756.2

$ 2,575.8

$ 2,440.5

Revenue - Starz Business

206.2

123.7

619.7

545.9

Total revenues

1,069.7

879.9

3,195.5

2,986.4

Expenses:

Direct operating

769.2

580.7

2,210.0

1,886.7

Distribution and marketing

89.7

116.3

395.9

462.3

General and administration

85.2

87.6

344.6

349.2

Depreciation and amortization

4.6

4.5

17.8

15.6

Restructuring and other

26.8

71.4

102.6

132.9

Total expenses

975.5

860.5

3,070.9

2,846.7

Operating income

94.2

19.4

124.6

139.7

Interest expense

(62.4)

(65.4)

(242.5)

(222.5)

Interest and other income

3.4

12.5

14.8

19.2

Other losses, net

(6.7)

(5.7)

(11.8)

(20.0)

Loss on extinguishment of debt

--

(1.3)

(1.8)

(1.3)

Gain on investments, net

--

0.8

--

3.5

Equity interests income

(4.2)

3.0

4.3

8.7

Income (loss) before income taxes

24.3

(36.7)

(112.4)

(72.7)

Income tax provision

(1.2)

(17.5)

(14.5)

(34.2)

Net income (loss)

23.1

(54.2)

(126.9)

(106.9)

Less: Net loss (income) attributable to noncontrolling interests

(1.2)

7.2

(1.6)

13.4

Net income (loss) attributable to Lionsgate Studios Corp. shareholders

$ 21.9

$ (47.0)

$ (128.5)

$ (93.5)

Per share information attributable to Lionsgate Studios Corp. shareholders:

Basic net income (loss) per common share

$ 0.10

$ (0.23)

$ (0.43)

$ (0.42)

Diluted net income (loss) per common share

$ 0.10

$ (0.23)

$ (0.43)

$ (0.42)

Weighted average number of common shares outstanding:

Basic

288.7

253.4

284.6

253.4

Diluted

288.7

253.4

284.6

253.4

LIONSGATE STUDIOS CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Year Ended

March 31,

March 31,

2025

2024

2025

2024

(Unaudited, amounts in millions)

Operating Activities:

Net income (loss)

$ 23.1

$ (54.2)

$ (126.9)

$ (106.9)

Adjustments to reconcile net income (loss) to net cash provided by (used in)

operating activities:

Depreciation and amortization

4.6

4.5

17.8

15.6

Amortization of films and television programs

588.8

399.7

1,642.1

1,347.8

Non-cash charge from the modification of an equity award

--

49.2

--

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