Lions Gate Entertainment Corp (NYSE:LGF.A) Q2 2020 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:30 pm ET

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Lions Gate Entertainment Corp (NYSE:LGF.A) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen thank you very much for standing by and welcome to the Lionsgate Entertainment 2Q '20 Earnings Conference Call. [Operator Instructions]

And I would now like to turn the conference over to our host Head of Investor Relations Mr. James Marsh. Please go ahead sir.

Executive
James Milton Marsh

Good afternoon. Thank you for joining us for the Lionsgate Fiscal '20 Second Quarter Conference Call. We'll begin with opening remarks from our CEO Jon Feltheimer; followed by remarks from our CFO Jimmy Barge. After their remarks we'll open the call for questions. Also joining us on the call today are Vice Chairman Michael Burns; COO Brian Goldsmith; Chairman of the TV Group Kevin Beggs; and Chairman of the Motion Picture Group Joe Drake. From Starz we have President and CEO Jeff Hirsch; CFO Scott MacDonald; and EVP of International Superna Kalle. The matters discussed on this call today include forward-looking statements including those regarding the performance of future fiscal years. Such statements are subject to a number of risks and uncertainties. Actual results could differ materially and adversely from those described in the forward-looking statements as a result of various factors. This includes the risk factors set forth in Lionsgate's most recent annual report on Form 10-K as amended in our most recent quarterly report on Form 10-Q filed with the SEC. The company undertakes no obligation to publicly release the results of these revisions to these forward-looking statements that may be made to reflect any future events or circumstances.

With that I'll turn it over to Jon. Jon?

Executive
Jon Feltheimer

Thank you James and good afternoon everyone. To paraphrase Mad Men's Don Draper it's a different universe today. I want to start by emphasizing how well our businesses are positioned in this incredibly disruptive environment and highlight their strong performance. We just reported financial results that showed solid gains in revenue adjusted OIBDA and earnings per share. And each of our businesses continues to stake out highly competitive sustainable and unique positions within the ecosystem. As our industry continues to shift to a subscription-streaming model in which services are increasingly sold on an a la carte basis Starz is uniquely well positioned to benefit from this paradigm shift thanks to our depth of content versatility and speed to market. In that respect we gained a record 1.2 million over-the-top subscribers in the quarter to 5.6 million 28% increase and our biggest sequential gain ever.

With the release of the final 5 episodes of Power in January and the return of the hit series Outlander in February we're primed to achieve our projections of 6 million-plus over-the-top subscribers by the end of the fiscal year. Strength of our over-the-top business is driven by the success of our focused programming strategy. Power the number one premium pay series among African-American audiences continues to deliver significant growth in over-the-top subscribers and audience engagement year after year. After selling out Madison Square Garden it scored the highest-rated premier in premium television this summer and has maintained its place