Lionsgate
(
LGF.A
) recently announced that it has collaborated with PVR Pictures, which is one of the leading multiplex chains in India that operates 846 screens in 176 cinemas in 71 cities. This will allow Lionsgate to bring in a big theatrical Hollywood slate to India in 2023.
The first movie that it is releasing under this contract is
Plane
(Jan 27) starring Gerard Butler and Mike Colter. Other films lined up include
John Wick: Chapter 4
starring Keanu Reeves,
The Hunger Games – The Ballad of Songbird & Snakes, White Bird: A Wonder Story
featuring Gillian Anderson and Helen Mirren, comedy-drama
About My Father
, action-thriller
Bricklayer
and many more.
With Indians shifting their preferences to Hollywood movies, it is expected that this strong pipeline of movies could gain massive footfalls at the theatres and aid Lionsgate’s top line.
PVR is also in talks with Inox, another big multiplex chain in India to merge the two businesses into one. This might expose Lionsgate to another 169 multiplexes and 730 screens in 74 cities of the country, allowing it to further expand its reach, if the deal goes through.
Lionsgate Faces Competition Despite Strong Movie Slate
Lionsgate is taking initiatives to expand and grow in various developing and booming economies like India. Per Statista, revenues in the Indian cinema tickets segment are projected to reach $416.40 million in 2023, indicating an annual growth rate of 2.63%, which provides a big opportunity for Lionsgate to make business.
However Lionsgate’s Motion Picture segment has been posing serious threat from other production units such as
Walt Disney
DIS
that has been capturing huge audience with movies like
Doctor Strange in the Multiverse of Madness, Black Panda: Wakanda Forever
that made $411 million and $433 million respectively at box office.
Paramount
PARA
too gained immense traction recently with the release of
Top Gun Maverick
that recorded $718 million at the box office globally besides
Sonic the Hedgehog 2
that made $190 million
Such competitions could be the reason of Lionsgate’s revenue decline in its Motion Picture segment that fell by 32% to $224.0 million.
Lions Gate Entertainment Corp. Price and Consensus
Lions Gate Entertainment Corp. price-consensus-chart
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Lions Gate Entertainment Corp. Quote
These competitions are likely to continue in 2023 as well with Disney’s upcoming movies such as
The Little Mermaid , Elemental, The Marvels
and Paramount’s releases like
Mission: Impossible – Dead Reckoning Part One
and
Transformers: Rise of the Beasts
that could gain immense traction and hinder growth at Lionsgate.
Shares of Lionsgate have plunged 68.4% over the last one year against the Zacks
Consumer Discretionary
space that declined 34.1%.
Zacks Rank & Stocks to Consider
Lionsgate currently has a Zacks Rank #4 (Sell).
You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
A better-ranked stocks in the same sector is
Liberty Media
FWONK
that sports a Zacks Rank #1 (Strong Buy).
Liberty Media’s share price decreased 5.8% year over year. The Zacks Consensus Estimate for earnings is pegged at 10 cents, which has moved up by 42% over the past 30 days.
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