Lions Gate Entertainment Corp. Stock Price, News & Analysis

Hemisphere Media Group (NASDAQ: HMTV) announced the acquisition of the remaining 75% stake in Pantaya for about $124 million in cash from Lionsgate. Previously owning 25%, Hemisphere now fully owns Pantaya, the leading subscription video-on-demand service for U.S. Hispanics. With approximately 900,000 subscribers, Pantaya aims to grow to 2.5-3.0 million by 2025. The acquisition, funded through cash and a $50 million add-on loan, positions Hemisphere to expand content investment and capitalize on the growing U.S. Hispanic population, projected to reach 75 million by 2030.

Lionsgate has appointed Nilay Shah as Executive Vice President and Head of Investor Relations, effective March 22, 2021. With 15 years of experience at firms like Citadel and Franklin Templeton, Shah will drive the company’s investor relations strategies and communications. The appointment follows four consecutive strong quarters, highlighted by record library revenues of $765 million and significant streaming subscriber growth at STARZ. Shah aims to enhance the company's value story to current and prospective shareholders.

Lionsgate (NYSE: LGF.A, LGF.B) and STARZ have signed a multiyear exclusive first window output deal for all theatrically released Lionsgate and Summit films, effective when current agreements expire at the end of 2021 and 2022. The deal includes major franchises such as JOHN WICK, BORDERLANDS, and the Hunger Games prequel. This partnership aims to enhance STARZ's premium content offering and support its growth, with a focus on attracting leading storytellers and delivering diverse programming.

Lionsgate has entered a multi-year agreement with Sony Pictures Home Entertainment (SPHE) for the distribution of its physical home entertainment releases in the United States and Canada. This collaboration, effective from July 2021, allows Lionsgate to maintain its independent sales while benefiting from SPHE's advanced distribution services. Both companies express enthusiasm for this partnership, aiming to enhance their efficiency and service to retailers and consumers. This agreement is expected to strengthen their business operations and provide better content delivery.

Starz, led by President and CEO Jeffrey Hirsch, has launched the #TakeTheLead initiative to enhance narratives by and for women and underrepresented audiences. A UCLA study shows Starz exceeds industry averages in diversity, with 63.2% of series leads being people of color and 54.6% female showrunners. Starz's commitment also includes hosting monthly Transparency Talks with key organizations to foster industry-wide change. The program's goal is to amplify diverse voices through programming and leadership, exemplified by a 75% female executive team.

Lionsgate reported Q3 results for the fiscal year 2021, with revenue reaching $836.4 million and a net loss of $13.9 million. Adjusted net income was $45.9 million, with adjusted diluted EPS at $0.21. Cash flow used in operations was $44.2 million, while adjusted free cash flow stood at $110.7 million. Global subscribers for Media Networks rose to 28 million, including a 26% increase in STARZPLAY International OTT subscribers. The film and television library generated $765 million in TTM revenue, marking a strong performance despite pandemic challenges.

Lionsgate (NYSE: LGF.A, LGF.B) will release its financial results for the third quarter of fiscal year 2021 after market close on February 4, 2021. The quarter ended on December 31, 2020.

Senior management will conduct an analyst and investor conference call at 5:00 P.M. ET on the same day to discuss the results. The call will be accessible via the company's website.

Starz plans to expand its premium OTT platform, Lionsgate Play, into Indonesia, capitalizing on a rapidly growing digital economy and a young, connected population. The company has appointed Guntur Siboro as General Manager and Gene Tamesis as Vice President of Business Development & Partnerships to lead local operations. With Indonesia's population of 260 million and limited premium OTT options, this move aims to cater to the demand for Hollywood content, featuring subtitled options in Bahasa. Starz currently operates in 55 countries and seeks to strengthen its position in Southeast Asia.

Starz has launched its independent OTT app, Lionsgate Play, in India, aiming to offer premium Hollywood content in multiple Indian languages. The app is priced at INR 699 for a year or INR 99 monthly. Available across devices like Google Play and Amazon Firestick, it seeks to tap into India's growing OTT demand. The service includes a diverse range of content, launching with notable titles such as Love Life and Hustlers. Starz aims for significant growth in its international footprint, expanding into 55 countries, including India.