Lions Gate stock rises as Starz, ‘Mad Men’ revenue drives earnings beat

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Lions Gate Entertainment Corp. shares rose in the extended session Thursday after the television and movie company’s results exceeded Wall Street expectations, driven by its Starz streaming network and recent syndication of the television program “Mad Men.” Lions Gate shares rose 7.5% after hours, following a 3% decline in the regular session to close at $7.81. The company reported fiscal first-quarter net income of $51.1 million, or 23 cents a share, versus a loss of $54 million, or 25 cents a share, in the year-ago period. Adjusted for stock-based compensation and other items, earnings were 39 cents a share, versus a loss of 2 cents a share in the year-ago period. Revenue declined to $813.7 million from $963.6 million in the year-ago quarter, as library revenue grew to a record $219 million owing to “Mad Men.” Analysts surveyed by FactSet had forecast earnings of 21 cents a share on revenue of $775.9 million. “During the quarter we took steps to monetize our film and television library, embraced innovative distribution strategies for our films, and acquired new properties while renewing others,” said Jon Feltheimer, Lions Gate chief executive, in a statement. “Most important, it was a quarter in which we used all of our resources to continue growing a unique, valuable and scalable global streaming platform at Starz.”Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.