Multimedia studio Lionsgate (LGF-A) reported its Q3 2018 earnings. While its results beat Wall Street estimates almost across the board, its revenue – arguably one of the most important metrics – fell short.
Earnings per share came in at 10 cents – beating estimates of $0.08/share. Revenue slid a whopping 18%, recording $933.2 million. Wall Street expected the number to reach $1.01 billion.
The film division had a troublesome quarter. Undergoing a massive overhaul, the unit managed to accrue a timid $362.6 million – a 33% drop. Profit also dropped a full 20%, for a total of $43.5 million.
The company pegs the underwhelming results to some misfires that it did not directly point at. However, onlookers can easily recognize the terribly-performing “Robin Hood” as one of them. It also noted that they hit a homerun last quarter, with the widely-acclaimed and box office hit “Wonder”.
Media Networks registered a 4% growth in revenue, bringing in $366.8 million. Profits increased almost a full 10% to reach $134.1 million. The Starz-led unit also gained 1.1 million new subscribers year-on-year, reaching 25.1 million.
Jon Feltheimer, Lionsgate CEO, said as follows in a statement released with the report: “We’re pleased to report a strong quarter with significant free cash flow and continued revenue and subscriber growth at Starz. As we refill our feature film and television pipelines at a robust pace and take our integration of Lionsgate and Starz to the next level, all signs are pointing to strong growth in the year ahead.”