Lionsgate Reports Third Quarter Revenue

Lionsgate (NYSE: LGF), a premier next generation global content leader, today reported revenue of $751.3 million, adjusted EBITDA of $146.8 million, adjusted net income of $110.0 million or $0.79 adjusted basic net income per share and net income of $98.2 million or $0.70 basic net income per share for the third quarter of fiscal 2015 (quarter ended December 31, 2014).

The worldwide theatrical release of The Hunger Games: Mockingjay-Part 1, robust domestic television series licensing, lower marketing costs, a reduction in the effective tax rate and increased earnings from our equity investments drove profitability and margins in the quarter.

"Our strong financial results in the quarter were driven by growing margins across our businesses," said Lionsgate Chief Executive Officer Jon Feltheimer. "Our television division had another stellar quarter as it continues to emerge as a leading supplier of premium scripted content, and our film businessachieved strong profitability with a diverse portfolio of films. We're also pleased to see our digital initiatives beginning to deliver incremental revenue and profits, and we expect their contributions to continue to grow."

Adjusted EBITDA of $146.8 million for the quarter compared to record adjusted EBITDA of $161.6 million in the prior year quarter.

Record adjusted net income of $110.0 million or $0.79 adjusted basic net income per share for the quarter increased 6% from adjusted net income of $103.9 million or $0.75 adjusted basic net income per share in the prior year quarter. Adjusted net income for the quarter benefitted from a lower effective tax rate compared to the prior year quarter and higher equity interest income, primarily reflecting higher net income at the Company's EPIX pay television venture with Viacom and MGM.

Net income of $98.2 million or $0.70 basic net income per share on 140.0 million weighted average number of common shares outstanding increased 11% from $88.8 million or $0.64 basic net income per share on 137.9 million weighted average number of common shares outstanding in the prior year quarter.

Revenue of $751.3 million for the quarter declined 11% from $839.9 million in the prior year quarter as declines in motion picture revenue offset gains in television production revenue. Lionsgate had two wide release theatrical films in the quarter compared to four wide release theatrical films in the prior year quarter, and the theatrical slates underlying the Company's home entertainment and international operations were also smaller than in the prior year quarter.

The Company will pay its quarterly dividend of $0.07 per common share tomorrow, February 6, to shareholders of record as of December 31, 2014.

Overall Motion Picture segment revenue for the quarter was $590.1 million, a decline of 22% compared to the prior year quarter. Within the Motion Picture segment, theatrical revenue for the quarter was $186.4 million with only two wide theatrical releases, MockingjayPart 1 and John Wick, compared to a prior year quarter that included four wide theatrical releases, The Hunger Games: Catching Fire, A Madea Christmas, Ender's Game and Escape Plan.

Lionsgate's home entertainment revenuefor the quarter was $183.1 million compared to $200.7 million in the prior year quarter, due primarily to the smaller slate of theatrical films discussed above. MockingjayPart 1 begins its home entertainment rollout on electronic sell-through on February 17 th and debuts on packaged media and on demand platforms March 6 th.

Television revenue included in the MotionPicture segment for the quarter was $82.9 million compared to $105.8 million in the prior year quarter with only one new wide release theatrical title, Divergent, reaching its pay television window compared to five wide release theatrical titles in the prior year quarter. The next film in the Divergent franchise, Insurgent, debuts in theatres worldwide on March 20 th in IMAX and 3D.

InternationalMotion Picture segment revenue (excluding Lionsgate U.K.) for the quarter was $79.4 million compared to $117.1 million in the prior year quarter due to fewer wide release titles in the quarter.

Lionsgate U.K. had another strong quarter as revenue increased 12% to $62.7 million driven by a theatrical slate that included MockingjayPart 1, The Expendables 3 and the third-party films The Railway Man and Postman Pat: The Movie.

Revenue for the Television Production segment rose to $161.2 million in the quarter, nearly doubling the $82.3 million in the prior year quarter, with a strong performance in domestic television licensing as well as gains in international television revenue and home entertainment revenue from television production.

A record 74 episodes and 58.5 hours of domestic television series were delivered to a broad spectrum of buyers in the quarter, including episodes of Anger Management, Orange is the New Black, Nashville, Ascension, MAD MEN and Manhattan. The quarter also benefitted from significant domestic television revenue from the game and talk shows Celebrity Name Game, FAMILY FEUD and The Wendy Williams Show. International television revenue included licensing of Anger Management, Orange is the New Black, NASHVILLE and Mad Men.

Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal 2015 third quarter financial results at 9:00 A.M. ET/6:00 A.M. PT tomorrow, Friday, February 6. Interested parties may participate live in the conference call by calling 1-800-230-1059 (612-234-9959 outside the U.S. and Canada). A full digital replay will be available fromFriday morning, February 6, through Friday, February 13, by dialing 1-800-475-6701 (320-365-3844 outside the U.S. and Canada) and using access code348885.

ABOUT LIONSGATE

Lionsgate is a premier next generation global content leader with a strong and diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, digital distribution, new channel platforms and international distribution and sales. Lionsgate currently has more than 30 television shows on over 20 different networks spanning its primetime production, distribution and syndication businesses, including such critically-acclaimed hits as the multiple Emmy Award-winning MAD MEN and Nurse Jackie, the comedy Anger Management, the broadcast network series Nashville, the syndication success THE WENDY WILLIAMS SHOW and the critically-acclaimed hit series Orange is the New Black.

Its feature film business has been fueled by such recent successes as the blockbuster first three installments of The Hunger Games franchise, the first installment of the Divergent franchise, John Wick, Now You See Me, Roadside Attractions' A Most Wanted Man, Lionsgate/Codeblack Films' Addicted and Pantelion Films' Instructions Not Included, the highest-grossing Spanish-language film ever released in the U.S.

Lionsgate's home entertainment business is an industry leader in box office-to-DVD and box office-to-VOD revenue conversion rates. Lionsgate handles a prestigious and prolific library of approximately 16,000 motion picture and television titles that is an important source of recurring revenue and serves as the foundation for the growth of the Company's core businesses. The Lionsgate and Summit brands remain synonymous with original, daring, quality entertainment in markets around the world. www.lionsgate.com.

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