Lions Gate EntertainmentNYSE: LGF.A

Lions Gate Entertainment is nearing its final spin-out of the Starz streaming product. Shareholders can now hold a direct investment in Lionsgate Studios via a separate stock currency. The company's streaming experiment essentially failed, hopefully leading to a shift towards prioritizing theatrical releases and attracting potential buyers.

Lions Gate and Lions Studios are separating in two different entities by the end of the year, in order to simplify the corporate structure. The 5.5% bonds due 2029 will be split between the two companies, and right now trade at a large spread that we believe is unjustified. The bonds that will remain at the STARZ business trade at 10% spread over similarly-rated bonds despite leverage in the low 3.0x and significant deleveraging opportunities.

The headline numbers for Lions Gate (LGF.A) give insight into how the company performed in the quarter ended March 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

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Lionsgate's (LGF.A) fourth-quarter fiscal 2024 results reflect strength in the Studio Business segment, especially Television Production, amid soft Media Network revenues.

Lions Gate Entertainment Corp. (NYSE:LGF.A ) Q4 2024 Results Conference Call May 23, 2024 5:00 PM ET Company Participants Nilay Shah - EVP, Head of Investor Relations Jon Feltheimer - CEO Michael Burns - Vice Chairman Jimmy Barge - CFO Jeffrey Hirsch - President & CEO, STARZ Entertainment LLC Kevin Beggs - Chairman, the TV Group Adam Fogelson - Chairman, Motion Picture Group Chairman Brian Goldsmith - COO Jim Packer - President, Worldwide TV and Digital Distribution Scott Macdonald - STARZ CFO Alison Hoffman - President of Domestic Networks Conference Call Participants Steven Cahall - Wells Fargo Barton Crockett - Rosenblatt David Joyce - Seaport Research Partners Jason Bazinet - Citi Alan Gould - Loop Capital Jim Goss - Barrington Research Thomas Yeh - Morgan Stanley Operator Good afternoon, and welcome to the Lionsgate Fourth Quarter 2024 Earnings Conference Call. All participations will be in listen only mode.

Lionsgate blew past Wall Street's expectations for the March quarter, its fiscal fourth, on a few key metrics from revenue to adjusted EPS and operating income as library sales and ramped up content deliveries helped propel TV profits up by 83%. The numbers are the last to land this earnings season.

Michael Burns, the vice chairman of Lionsgate Studios, appears on 'Fast Money' to talk about the company's recent listing on Nasdaq, the current landscape of streaming services, the state of the movie industry, and other topics.

Lions Gate (LGF.A) has been upgraded to a Zacks Rank #2 (Buy), indicating increasing confidence in the company's potential for earnings growth. This could lead to a rise in the stock price in the short run.