Lionsgate stock rockets
August 11th, 2009 - 7:21 pm ICT by IBNSAug 11 (IBNS) In the midst of economic meltdown when media and entertainment companies are struggling to stay afloat with their downbeat earnings, Lionsgate has proved to be an exception.
Lionsgate was the most sought after stock on Wall Street Monday and shares ended the day up 49 cents (8.2%) to $6.46. The stock was up as much as 11% in after-hours trading, variety.com reported.
The numbers were higher than what the analysts’ expected and it was the company’s second-best quarter ever amid growth in nearly every division.
In first-quarter of the fiscal year, Lionsgate saw a profit of $36.3 million for the period ended June 30 vs. $3.5 million a year earlier. Revenues jumped 30% to $387.7 million from a year-earlier $298.5 million.
Lionsgate has also seen an increase in TV production revenues, which soared 112% thanks to cable shows that are continuing (”Weeds,” “Tyler Perry’s House of Payne”) and new (”Nurse Jackie”). Lionsgate TV’s Emmy-winning AMC drama “Mad Men” kicks off its third season Sunday.
But home entertainment revenues dipped 6%, a smaller decline than at other studios. And the company’s recent acquisitions, Mandate Pictures and TV Guide Network, have started showing profits.
The strong earnings will be the much needed shot in the arm for Lionsgate as financier Carl Icahn has been aggressively building up his position in the company.
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Tags: 5 million, acquisitions, economic meltdown, entertainment companies, financier carl icahn, first quarter, fiscal year, home entertainment, ibns, mad men, mandate pictures, midst, period ended june, rockets, third season, tv guide, tv production, tyler perry, wall street, weeds
