Lionsgate Studios Corp. Q4 FY2025 earnings call

Separation: Completed separation of Lionsgate and Starz on May 7, trading under ticker symbol LION. ### Quarter Highlights: Motion Picture Group had strong financial quarter with profitable mid-budget successes, robust library sales, etc. TV Group launched critically acclaimed comedy 'The Studio', secured key series renewals. Library achieved record performance. ### Film Slate: Motion Picture Group unveiled strong slate at CinemaCon, including films like 'The Hunger Games' sequel, 'The Long Walk', etc. ### TV Slate: TV group added premium properties, continued developing various adaptations. ### Three Arts: Premier talent management company expanded into streaming comedies with series renewals, launched initiatives in creator economy.

Motion Picture Group: Revenue up 28% year over year to $526 million, segment profit reached a ten-year high of $135 million, up 65% year over year. TV: Quarterly television revenue of $543 million was up 16% year over year, while segment profit of $41 million was down 23% year over year. Library: Trailing twelve-month revenue of $956 million, a record, driven by a strong fourth quarter.

Fiscal 2026: Strong film and TV slate to refill pipeline. Michael Jackson biopic likely moved out of fiscal 2026, impacting 2026 results but bolstering 2027. ### Fiscal 2027: Exciting slate likely including Michael Jackson, Hunger Games, etc. Expect solid two-year adjusted OIBDA growth from fiscal 2025 through fiscal 2027.

Factors: Actual results could differ materially from forward-looking statements due to various risks. ### Tariffs: Uncertainty around potential tariffs impacting movie production, but flexibility in production locations. ### TV Buyer Spending: Continued focus by buyers on controlling spending, creating challenges in navigating programming.

Q: Jimmy, outlook for next two years with Michael film delay and production borrowing. What's the cadence and confidence in library sales?

A: Jimmy Barge said 2026 is back-end loaded, refreshing pipeline, 2027 has strong slate including Michael Jackson. Confident in library sales helping cash flows while producing new content.

Q: Steven Cahall on separation opportunities and free cash flow conversion. How to think about standalone leverage and Starz IP shift?

A: Michael Burns talked about separation creating liquidity, Jimmy Barge discussed leverage target and range, Kevin Beggs on Starz IP shift as arms-length supplier relationship.

Q: Matthew Harrigan on financial exposure of 'The Resurrection of the Christ' movie. What's the financial risk?

A: Adam Fogelson said it's an exciting opportunity, not a frightening proposition, with international enthusiasm.

Q: Barton Crockett on studio acquisition potential post-separation. Thoughts on M&A process?

A: Michael Burns said focused on business performance to realize value, not speculating on M&A process.

Q: Patrick Scholl on theatrical content environment and challenges. How is theatrical environment affecting franchise development?

A: Adam Fogelson said theatrical environment is healthy, with room for franchise films and new franchises on low/mid-budget films.

Q: Jason Bazin on DTC apps consolidation and impact on business. Good or bad?

A: Michael Burns said consolidation could be good if streamers are profitable, and they're working on new buyers and audience sources.

Q: Alan Gould on Michael Jackson film length and AI monetization. Thoughts on film length and AI use?

A: Adam Fogelson talked about film length being a question to answer specifically, Michael Burns discussed AI collaboration for workflow optimization.