Lionsgate charges $ 50.5 million Covid-19 – variety

Lionsgate reported a $ 5.5 million charge in the fourth fiscal year ending March 31 due to the COVD-19 epidemic and related economic disasters – reflecting operating costs of 46 46 million.

These charges included motion picture and television frustrations and development charges associated with changes in performance expectations, as well as costs associated with project completion feasibility, film and television production breaks.

“We expect to incur additional incremental costs in future periods. We are seeking insurance recovery for some of these costs, which cannot be estimated at this time and are therefore not recorded in our consolidated financial statements, “the company added.

Above Wall Street estimates are Lionsgate’s revenue and operating income, which ended March 31, the fourth quarter of the fiscal year. Revenue was $ 944.3 million, with analyst operating income above% 125.8 million, 9% above the Wall Street forecast.

The earnings were released on Thursday after the stock market closed. CEO John Feltheimer issued a bullish outlook.

“We have reported a strong quarterly end to a tough fiscal year despite the disruption caused by the COVID-19 global epidemic,” Feltheimer said. “Our Lionsgate family has been challenged by this unprecedented amount of competition, dedication and collaboration. Thanks to their efforts, Sturge continues to provide great entertainment to our current audience in the home environment, and we are working closely with all of our content partners to ensure that production resumes and theaters reopen. “

Lionsgate said revenue for the media networks division remained largely unchanged from the previous year’s quarter when continued investment in StarzPlay’s international expansion resulted in a loss of 50 502 million and surpassing customer targets. Locally, Starz OTT subscribers totaled 6.8 million this quarter.

Motion Picture’s revenue rose 10% to 3 393 million due to strong home entertainment of “Knives Out” and other titles. The only new theatrical release of this quarter, “I Still Believe”, was in theaters just four days before they closed, and the studio quickly lost faith and quickly launched the faith-based title in the exclusive premium video-on-demand window to reduce the revenue. The profit on the part was 1 101 million.

The company said the television production division’s revenue was 8 258 million and the segment’s profit was 22 22 million, driven by strong library sales.