Home Newswire Lionsgate+ pulled from seven territories as Lionsgate reports operating loss of $1.75B...

Lionsgate+ pulled from seven territories as Lionsgate reports operating loss of $1.75B after Starz restructuring

Lionsgate+ has been pulled from seven territories – including France, Germany, Italy, Spain, Benelux, Japan and the Nordics – in response to “economic and industry headwinds”, according to Lionsgate. The company reported a $1.75B operating loss with the decision to exit these markets contributing to a $218.9 million restructuring charge. Financial results in the quarter also include a $1.48 billion non-cash impairment charge related to goodwill from the Starz acquisition. The company reports a 52% year-on-year increase of its global streaming subscribers, to reach 27.3 million this quarter.

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Lionsgate+ has been pulled from seven territories – including France, Germany, Italy, Spain, Benelux, Japan and the Nordics – in response to “economic and industry headwinds”, says Lionsgate. The company reports a $1.75B operating loss, with the decision to exit these markets contributing to a $218.9 million restructuring charge. This was primarily driven by content impairment write-downs in the affected territories.

Financial results in the quarter also include a $1.48B non-cash impairment charge related to goodwill from the Starz acquisition.

The company reports a 52% year-on-year increase of its global streaming subscribers, to reach 27.3 million last quarter. The number of Lionsgate+ subscribers (including Lionsgate Play in India and South Asia) grew 97% year-on-year. The company say that streamlining the business will allow the Starz division to breakeven by the end of 2024.

Lionsgate reports 27.8 million global subscribers in total across services, including Starzplay Arabia. Revenue from Lionsgate’s 17,000-title film and television library was $747 million for the trailing 12 months. The company reports library revenue of $210 million in the quarter.

Jon Feltheimer, CEO, Lionsgate, says: “We reported another strong library performance and continued growth in Lionsgate Television series deliveries as our studio businesses continued to perform in line with expectations.

“Economic and industry headwinds are having the greatest impact at Starz, where we are exiting seven territories. This will allow us to streamline Starz’s international business and return it to profitability more quickly while continuing to build on the opportunities created by a strong Starz original series slate and focused content strategy domestically.”


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