Lionsgate has posted $1 billion in revenues in its most recent financial report, fuelled by a record rise in sales from its 17,000-title film and television library.
The studio behind The Hunger Games and John Wick said that library revenues rose to a record $845 million for the trailing 12 months.
Overall Lionsgate revenues for the third quarter, which ended December 31, 2022, were up 13% compared to the same period in 2021. Operating income was $7.8 million.
Lionsgate said that global subscribers to its Starz, Lionsgate+ and Starzplay Arabia services dropped to 37.2 million, citing linear and OTT pressures domestically for the fall.
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Lionsgate is planning to spin off its film and television studio and production company from Starz. The two arms of Lionsgate are expected to separate by September.
The company’s studio business, spanning film and TV production, reported revenue of $894.2 million, an increase of 25% from $713.9 million in the prior year quarter. Lionsgate said the rise was driven primarily by strong library sales and the timing of scripted content deliveries.
The studio is prepping for some big film releases this year including John Wick: Chapter 4 and Hunger Games prequel Ballad of Songbirds & Snakes.
Lionsgate ended the quarter with $425 million in available cash and an undrawn revolving credit facility of $1.25 billion.
During the quarter the Company sold a partial interest in its Starzplay Arabia service and booked a $43 million cash gain.
Lionsgate CEO Jon Feltheimer said: “We enter our fourth quarter with encouraging signs across all of our businesses: A rebounding domestic box office just as we bring our biggest slate in years to theatres; renewals of six key Lionsgate Television series during or immediately after the close of the quarter; and improved STARZ economics due to its international reorganization.”