Lionsgate+ leaves Spain after losing $1.75 billion

The restructuring and transformation of Starzplay International into Lionsgate+ and an operating loss of 1,750 million dollars have ended up leading to the abandonment of the platform in seven territories, including Spain.

Lionsgate has reported some revenue in the second quarter (quarter ended September 30, 2022) $875.2 million, a operating loss of $1.75 billion and a net loss attributable to Lionsgate shareholders of 1.81 billion dollars or $7.95 diluted net loss per share on 227.9 million weighted average common shares outstanding.

As direct response to this situation, the company has taken the “strategic decision" of abandon seven international Lionsgate+ territories (antes Starzplay International): France, Germany, Italy, Spain, Benelux, the Nordic countries and Japan, to rationalize the business. In the quarter, the company had to face a restructuring expense of $218.9 million, mainly due to the loss of value of content in the affected territories. The financial results for the quarter also include a non-cash impairment charge of $1.48 billion related to goodwill from the STARZ acquisition. The goodwill impairment charge reflects changes in Media Networks' future free cash flow projections as well as the underlying valuations of comparable companies.

Jon Feltheimer, CEO of Lionsgate, attributes this situation to “the headwinds of the economy and the industry.” However, it is shown optimistic for the future, since the decision to exit the seven European markets will allow them to “rationalize Starz's international business and return it to profitability more quickly, while we continue to take advantage of the opportunities created by Starz original series and a content strategy focused on the domestic level.”