Lions Gate (LGF) Reports Q2 Loss, Starz Merger On Track
Zacks Investment Research | Nov 03, 2016 09:53PM ET
Lions Gate Entertainment Corp. (NYSE:LGF) posted second-quarter fiscal 2017 quarterly numbers, wherein it reported loss per share of 12 cents. In the year-ago quarter, the company had reported loss per share of 28 cents. On the other hand, the company’s adjusted net income in the reported quarter came in at 11 cents per share.
On the revenue front, Lions Gate witnessed a 34% year-over-year increase to $639.5 million, mainly due to a surge in Television Production and Motion Pictures revenues.
The company’s adjusted EBITDA came in at $2.6 million. In the prior-year quarter, the company had reported adjusted EBITDA loss of $8.1 million. Higher adjusted EBITDA came on account of increased profitability in the television group and a surge in revenues from Motion Pictures group.
The company’s filmed entertainment backlog was nearly $1.5 billion at the end of the fiscal second quarter.
Lions Gate to Acquire Starz
Earlier, Lions Gate Entertainment announced the acquisition of media and entertainment company Starz (NASDAQ:STRZA) . The cash and stock deal is valued at $4.4 billion or $32.73 per share. Board of Directors of both the companies has approved the deal. However, the deal is pending approval from shareholders of the companies as well as regulatory authorities.
Lions Gate Entertainment stated that in the upcoming quarter it is likely to report combined quarterly numbers. Management has made significant progress in planning the amalgamation of both the companies. This acquisition will help the company to generate robust free cash flow. Further, it will have more diversified income stream.
After the completion of the deal, the company anticipates more than $200 million in annual cash savings.
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