BRITISH COLUMBIA

Film, TV producer Lionsgate reports higher Q3 profit despite 11% drop in revenue

02/05/2015 06:11 EST | Updated 04/07/2015 05:59 EDT
VANCOUVER - Lionsgate Entertainment Corp. (NYSE:LGF), the company behind "The Hunger Games" movie franchise, the "Divergent" series and other popular films has reported an increase in third-quarter profit even as overall revenue declined 11 per cent.

Lionsgate, which reports in U.S. dollars, said net income rose to US$98.2 million or 65 cents US per diluted share from US$88 million or 59 cents in the comparable year-earlier period.

Revenue fell to US$751.3 million from US$839.9 million as declines in motion picture revenue more than offset gains in television production revenue, the company said in an earnings report issued Thursday after markets closed.

Lionsgate noted that it had just two wide-release theatrical films in the quarter compared with four in the prior-year period and that theatrical slates underlying the company's home entertainment and international operations were also smaller than last year.

However, the company, which it headquartered in Santa Monica, Calif, but has significant operations in Vancouver, reported lower operating expenses and an income tax provision of $15.3 million that was less than half the US$37.9 million it booked a year ago.