LIONS GATE ENTERTAINMENT Reports Earnings Results for First Quarter of FY2024
August 15, 2023
☀️Earnings Overview
LIONS GATE ENTERTAINMENT ($NYSE:LGF.A) released its first quarter of FY2024 earnings results on June 30 2023, showing total revenue of USD 908.6 million, a year-over-year increase of 1.6%. Net income for the quarter was USD -70.7 million, compared to the -119.0 million reported in the same period of the prior year.
Share Price
The stock opened at $7.9 and closed at $7.5, down by 4.6% from its prior closing price. The primary factor behind the decrease in the stock’s value was the lack of revenue growth. Despite recent efforts to expand their distribution network and acquire more content, the company’s top line stagnated and failed to generate the expected returns. Moreover, the recent sell-off in the entertainment industry further compounded the company’s woes and caused the stock to slip further than its peers. Despite these disappointing results, the company remains optimistic about its future prospects.
With their diverse portfolio of films and television shows, they are still well-positioned to benefit from the current streaming wars and capitalize on the changing media landscape. Moreover, with their cost-cutting initiatives and strategic investments, they are confident that they can turn around their fortunes and regain their past performance levels. Overall, LIONS GATE ENTERTAINMENT is facing a challenging period but remains focused on delivering long-term value to its shareholders. As the industry continues to evolve, they will need to continue adapting their strategies to stay competitive and get back on track. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for LGF.A. More…
| Total Revenues | Net Income | Net Margin |
| 3.87k | -1.96k | -22.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for LGF.A. More…
| Operations | Investing | Financing |
| -84.9 | -13.3 | 84.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for LGF.A. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.46k | 6.73k | 3.14 |
Key Ratios Snapshot
Some of the financial key ratios for LGF.A are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.1% | -2.3% | -44.1% |
| FCF Margin | ROE | ROA |
| -3.4% | -141.1% | -14.3% |
Analysis
At GoodWhale, we’ve been analyzing the financials of LIONS GATE ENTERTAINMENT and have determined that it is a high risk investment when it comes to financial and business aspects. We’ve detected 3 risk warnings in the income sheet, balance sheet, and financial journal. Our financial analysis has revealed that the company is over-reliant on its film division’s performance, which is a concerning trend. Additionally, their debt-to-assets ratio is significantly higher than the industry benchmark, and they have shown a consistent decline in their net income. If you’re considering investing in LIONS GATE ENTERTAINMENT, we strongly recommend that you sign up with us for more detailed information on our findings. Our analysis can give you an in-depth look at the company’s finances, allowing you to have a clear picture of their financial health and the potential risks associated with investing in this company. More…
Summary
Lions Gate Entertainment reported its earnings results for the first quarter of FY2024 on June 30 2023, with total revenue increasing 1.6% year-over-year to USD 908.6 million.
However, reported net income was USD -70.7 million, a decrease from the -119.0 million reported in the same period of the prior year. This news caused the stock price to dip on the same day. Investors should consider the risk associated with this company’s financial performance before deciding to invest in Lions Gate Entertainment. A further analysis of the company’s financials and market trends is recommended in order to form a more complete view of the company’s prospects.
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