‘Michael’ Boosts Lionsgate Quarterly Results as Studio Narrows Loss to $29 Million
Lionsgate reported stronger fiscal first-quarter results, narrowing its net loss to $28.8 million as the box-office success of the Michael Jackson biopic "Michael" lifted its film division to record profits. The results underline how a single hit release can transform a studio's fortunes, and Lionsgate is already moving to capitalise on the franchise with a sequel now in development, aiming to start production by late 2026 or early 2027.
The Motion Picture segment posted revenue of $587.3 million, more than double the prior year, with profit rising to $105 million from just $2.4 million a year earlier, driven by "Michael" surpassing $1 billion at the global box office and strong ancillary performance from "The Housemaid". Television Production revenue fell 34% to $189.3 million on the timing of episodic deliveries, though Lionsgate expects licensing four "Power" series to Netflix to boost the segment later in the year. Overall quarterly revenue reached $776.6 million, up 48%, with operating income of $25.6 million versus a loss a year earlier, while the net loss per share improved to 10 cents from a much larger loss of $94 million in the prior-year period.
- Lionsgate narrows quarterly net loss to $28.8 million, helped by "Michael"
- Film division profit hits record $105 million for a June quarter
- Studio plans "Michael" sequel, aiming for late 2027/early 2028 release
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Lionsgate is a film and television studio that makes and distributes productions for cinemas and streaming services. Its business includes Motion Picture, which earns money from films and related sales, and Television Production, which sells programmes to broadcasters and streaming platforms.
A studio’s results can change sharply when a major film succeeds: cinema takings and later sales or licensing can bring in revenue over time. Television income can vary from quarter to quarter because payments depend on when completed episodes are delivered and licensed.
The figures matter because they show how a single film can affect a studio’s overall performance, while its other divisions may move in a different direction. Lionsgate’s results also reflect the role of streaming deals in how studios distribute and earn money from their programmes.
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