Lionsgate will be thanking its lucky stars for snapping up the Twilight and Hunger Games franchises as their reported fourth quarter earnings shoot past Wall Street estimates.
Lionsgate has reportedly earned $163 million ($1.10 per share) in its fourth quarter which ended on 31 March. This is a massive increase from their $22.7 million ($0.17 per share) loss for the same time last year and well above Wall Street forecasts. Estimates from Wall Street had the company in the $0.47 range, but when earnings were adjusted, the net income resulted was $0.66 a share (or $89.6 million). The results were reported after the American market had closed causing Lionsgate stocks to surge in after-hours trading. When trading resumed the next day, it settled down to a more conservative figure.
Revenues for the past quarter has risen by 22% up to $785.7 million from $645.2 million in 2012 and a significant part of that can be traced back to the young adult franchises. The last quarter saw the release of the final Twilight film on DVD, The Twilight Saga: Breaking Dawn Part 2 as well as ongoing revenue from the DVD release of The Hunger Games.
“We completed a stellar fiscal 2013 with an outstanding fourth quarter that reflected strong contributions from our young adult franchises as well as the rest of our theatrical slate and our home entertainment and international businesses,” said CEO Jon Feltheimer, as quoted in Variety.
With the release of the second Hunger Games film, The Hunger Games: Catching Fire in November and the introduction of new young adult brands such as Divergent and Ender’s Game, it looks like 2013 could be another bumper year for the entertainment company.