Lionsgate (LGF.A.) Collaboration with Canada’s Cineplex Pictures
Lionsgate (LGF.A) recently announced that it has collaborated with Canada’s Cineplex Pictures to bring its theatrical releases to over 160 Canadian cinemas.
The deal includes 11 Lionsgate titles that will be released in 2023. Starting with Gerard Butler’s Plane on Jan 13, the slate includes Jesus Revolution Starring Kelsey Grammer John Wick Chapter 4 Starring Keanu Reeves
These are just a few of the many. Are You There God It’s Me, Margaret, About My Father, The BlackeningThe untitled Adele Lim comedy. White Bird: A Wonder Story, The Expendables 4The next installment of the multi-billion-dollar box office is here Saw Franchisee The Hunger Games: The Ballad of Songbirds And Snakes Are also available.
Lionsgate will benefit from this partnership, as it is likely to reach a wider audience in Canada.
Lionsgate to Facing Headwinds Despite Expanding
Lionsgate is making huge efforts to increase its global presence and reach a wider audience, with covid restrictions being lifted and footfalls at multiplexes recovering.
Recently, it joined forces with PVR Cinemas, a well-known multiplex in India, to launch its Hollywood slate in India. This emerging economy is witnessing a shift of customer preferences towards Hollywood movies, and it aims to profit from it.
What could be attributing this expansion is Lionsgate’s decision of spinning off its studio from Starz, its cable network company. This was done in order to give Lionsgate the opportunity to use its time and money to grow its businesses.
Prices and Consensus for Lions Gate Entertainment Corp.
Lions Gate Entertainment Corp. price-consensus-chart | Lions Gate Entertainment Corp. Quote
Lionsgate faces a significant headwind and will continue to face it from streaming industries. People are shifting to online movies in their own time, which is causing them to lose market share. According to The Business Research Company, global content streaming market will increase from $121.75 million in 2022 to $138.60 million in 2023, at a compound annual growth rate 13.8%.
Due to decreased disposable income, the anticipated recession of 2023 could also impact movie ticket sales. Lionsgate could see its revenues drop further.
Lionsgate shares have fallen 61.2% over the past year compared to the Zacks Consumer Discretionary Sector, which dropped 31.9% during the same period.
Zacks Rank & Stocks to Consider
Lionsgate currently has Zacks Rank #4. (Sell).
There are some stocks that rank higher in the same sector. Liberty Media FWONK, Royal Caribbean Cruises RCL Liberty Global LBTYA are all sporting a Zacks Rank 1, which means they are a strong buy.
Liberty Media’s share price decreased 2.6% year over year. The Zacks Consensus Estimate of Earnings is 10 cents. This has increased by 42% in the past 30 days.
Royal Caribbean Cruises shares are down 31.5% over the past year. The earnings estimate for Royal Caribbean Cruises is $1.34. This figure has remained constant for the past 30 days.
Liberty Global’s share are down 25.3% year over year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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