In its earnings release, the company did not comment on reports that it is looking to sell or spin off either its studio business or Starz.
The second quarter loss was $1.81 billion, or $7.95 a share, compared to net income of $7.5 million, or 3 cents a share, a year ago.
The loss included a $1.48 billion non-cash impairment charge related to goodwill from its acquisition of Starz, as well as a $218.9-million restructuring charge based on its decision to take Lionsgate Plus (previously called StarzPlay International) out of Japan and six European territories: France, Germany, Italy, Spain, Benelux and the Nordics.
Revenue fell 1% to $875.2 million.
LIonsgate's media networks business reported a segment profit of $21 million, compared to $4.4 million a year ago. The company said lower marketing costs both domestically and internationally was responsible for the gain. Revenue rose to $396.1 million from $484.7 million. The company had 27.3 million global streaming subscribers, up 52% from last year.
Lionsgate's studio business segment profit dropped to $61.9 million from $130.3 million a year ago, with revenue dipping to $654.9 million from $666.9 million.
Lionsgate's TV production profit fell to $13.6 million from $28.5 million as revenue increased to $430.9 million from $336 million. The drop in profit was the result of accelerated amortization caused by the cancellation of a series.
The company generated library revenue of $210 million in the quarter.
"We reported another strong library performance and continued growth in Lionsgate Television series deliveries as our studio businesses continued to perform in line with expectations in the quarter," said Lionsgate CEO Jon Feltheimer. "Economic and industry headwinds are having the greatest impact at Starz , where we are exiting seven international territories. This will allow us to streamline Starz's international business and return it to profitability more quickly while continuing to build on the opportunities created by a strong Starz original series slate and focused content strategy domestically." ■
Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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