Lionsgate Studios (LION) 7 Nov 242025 Q2 Earnings call transcript

Good afternoon, everyone, and welcome to the Lionsgate Second Quarter 2025 Earnings Conference Call. [Operator Instructions]. Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Nilay Shah from Investor Relations. Please go ahead.

afternoon. Good joining Fiscal Lionsgate Call. XXXX for Lionsgate Corporation for Corporation Entertainment Second us you Studios the and Thank Quarter Conference

begin the CFO, Brian from by remarks Worldwide call Adam Kevin have Burns; for Group, the Chairman remarks, and with Fogelson, Packer. and COO, Jon Jim Beggs, joining the are We'll of followed Jeffrey us Vice Also President Hirsch; Feltheimer; Michael on we'll our open of remarks we today Group, Barge. Goldsmith; Television the CFO, and Motion And President Jimmy Alison Networks, CEO, our Scott of Domestic Chairman questions. Hoffman. After TV CEO, Starz, call their Distribution, Digital from MacDonald; Picture from opening of President and Chairman,

discussed to factors release any forth forward-looking risk and call adversely materially includes any fiscal statements future years. regarding a also statements, that include filings the I'll The turn Lionsgate to the obligation circumstances. statements Entertainment factors. forward-looking a result Actual now Such risks result differ our for the Corporation. may described the uncertainties. set over The public call results made revisions no undertake future to of Corporation to reflect Studios as forward-looking This and number of the various of matters companies Lionsgate from including on those of in performance in the to these be are and subject statements publicly events or those could Jon.

box performance quarter. of a industry in results everyone. The last impacted disruption effects our Thank lingering Nilay, you office afternoon, financial theatrical for continued Thank and you, year's disappointing strikes us. and the good the joining

Borderlands, from Group, long nearly has rates for environment On our wrong strict quarter, our of results before. too go poor effects is reshoots ever wrong. could on coupled the the it releases In the less unscripted took go zone box and Film our of interest margin in during safety error a did and with everything models. Within with reflected the than performance for softer-than-anticipated office financial that an our continuing other Borderlands, the usual market sat correction. of pandemic. Group, shelf feeling outside It Television the rising business

and Several our our up by live to quarter, serves in slates, other models trailing business, television worked $XXX and production assets spite as spends, releases library or strong In business of as marketing standards works. still our quarter. of ballast efficient film the of the our that financial the revenue model diversified Risk-mitigated in didn't the though million a and above, our XX-month portfolio and projections. either a of that intended, nearly generating cushioned

III. also Under tentpoles But Me the progress preparing of emphasizing You XXXX, our take getting of and new place Group, film doesn't our models our the a in See driven success Michael, to creative right. in fiscal diversified stronger making slate and Motion good in much Balerina more return Picture by leadership the Now financial the we're

finishes most Lawrence the we of directing in take and on Walk Hunger adaptation brands focus sixth business. King's Francis he be advantage will Stephen Long of movie, as portfolios franchises that, novel after Beyond of our one full classic film and of the the Games the valuable

biggest taking bigger on create and tempos swings, in include film our swings. growth, value temples measured ] our success order when library, Our year incremental that outsized will we film packages for for slates [ our significant to a but ensure for X take capitalize in buyers we're to we opportunities X television and drive also

existing properties to we have us done IP. cases Starz that so well driven poles, tent focus commercial on the to before, on for in films addition will In continue the many based

of Mark recent Drinker, that Academy Paul the [indiscernible] thriller will start classic and Made. our we've in K [indiscernible] Cruz Seifried Luca Spider-Man In Amanda action winner, reimagining Psycho, Day Sydney Feed Guatenino, direct Lionsgate announced thriller Challenger's Ferry shepherd an Sweeney Director, the will House the direct filmmaker, Depp in Kuan Director, American weeks, will Johnny in Award York, and Webb, Penelope Tail Jan-Mari-Hellander. New from in will Amazing

the with stage chapter Mark revenue that Game we The Platt experience shepherded dozen the an As you to and with X of major month recently by IP play, a Lionsgate game stream additional a Wick Lionsgate Wicked's a new stage the and than slated and partnership in opportunity in invest businesses. works, John core spring opening an John have upcoming a our Vegas deep television video portfolio saw, from adapted Combined to outside in next head XXXX series more scheduled amazing AAA announced Wick XXXX, Broadway our Dancing, our walls important of Dirty Lalaland opening musical in we in Broadway Evergreen an plays producer incremental in developer. also the will for our is projects for franchise. films from create Las that upside to of a

merger TV about Midnight TV adaptation directed Twilight John the High Wick obsession, [indiscernible] The show Sun, on adaptation The John Hunting Wick Under Table and Television. in the Acapulco, value co-written executive disrupting we down. deep library. letting with The this not future, to hits, correction based properties and seduction of The and and reimagining biggest the a and Starz's returning market while landscape to has opportunities bestseller Ghosts, a adding business of one slow Quest, hit properties growth starring for impacted Mythic as shows Lives, Texas. East like Turning Seth acclaimed by of Studio, our and new environment scripted Lionsgate significant tremendous major buyers The comedy, But It's create The Rookie, long-standing that business Rogen. Spartacus, produced continuing the original to core high-profile order us and Canon of series, to group Raising such slate both fewer are unscripted Television the brings models. BMF this

the In addition, drawing buyers year, of XX areas refilling new lean pipeline scripted to more our new start and new into we're ability growth. to models, the upon than to our sold business of platforms projects pivot with create since

to labels to business upside. us greater costs, We scripted normal mix our pendulum swing to begin to new would fine-tune unscripted platform grow mitigate smaller in maximize expect strategies. the as meantime, profitability efficiencies of create do, television consolidating continuing models the our and business partners doing on business, and their you slate a everything our reducing our the and our to to back risk expect content In their evaluate is to

Starz. to Turning

multi-platform platform increase We broke segment the between heading XX% a XX.X the quarter back Book executing the positioned the profit X multi-platform drive fourth shows, into season, XX growth in Starz separation. fiscal and of the on million network viewers is Starz successful rate track Ghost where OTT is the the viewership for working. half of a revenue Power in piece. to X viewers after in million like with and for reaching programming year remains $XXX streams reaching million million records year. in II gaining second half its a

Outlander shows half to of OTT successful hit to the original both of our engaging demos, the growth year. compares back and series core of Our very other subscriber in Raising most hit return core the on With platforms. Canon, series we with favorably group upcoming expect

of multiyear TV, Starz TV renewed live On partnership world new new with and the in YouTube their opportunities. distribution fastest-growing that also the front, one creates the distribution services a agreement bundling

than as well include due as to anticipated platform lower industry as increased bundled of to announced to able disruption engagement BritBox on churn, will whose bundle however, Starz on little significant subscriber benefits value. gain on they a real deal bundles the own reduced Streaming its be addition, and marketing In begin to a promise world and greater Starz issues, have materialize traction, technology lifetime a capitalize taken costs, longer Amazon. to

Lionsgate future filmmakers filing of In and we believe proxy. that in the quarter quarter, guardrails The Runway, announced our can creative our long of titles positive the be of impact transformational talent. use We is the new and believe business a designate. a combination our research appropriate report preliminary its growth group have enterprise, Starz will pleased separation company science. partnership towards Studio for a the create to on under tool with of over serve will access to And of within I'm library art but we with order the in applied require we they business. and our model valuable AI AI a the to a to harnessed train have the a which progress term, entertainment the a that and it will strong full

put the companies, will financing a collapsed stock for we The moment. into and of place one continued in to X our which Board's classes steps that both in Jimmy discuss recommendation necessary

to other the and to save but they and streamers being and We regain returning regulatory always to consumers continue their to technologies and to full as subject slowly television money surely library moved where year of the robust separation by increase is will great to the the efficiency that has We year, difficult achieving in industry anticipate platforms of industry. strengthen to like footing balance timing continue shows their disrupted for going calendar fast of films, habit where what and buyers transitional of approvals. a ahead lies our and an sheets return are to end adopt new This the movies.

take in But business financial we'll sense retirement of realities have offered be company control shorthanded packages to models to ourselves takes adjusting in the we severance assure value. can things offers. shareholders and our you eligible month, we meantime, drive shareholder by streamline early marketplace. voluntary are aligning continue our and do employees these our advantage whatever to in employees every that Last X% way, establish our we and the for to the that the it of have U.S. elected Lionsgate's execution economic and a with creative to can of approximately the I to make and size, we

discipline greatest we're to we rigorously adjustments apart. model fully adhere even into have faithful to But and more based our the more lean more on us spirit business changes to even In posture is financial have IP remain continuing and strict risk-mitigated always portfolio that by and our offered set make closing, business environment. the diversified to our even to opportunities our in of non-replicable incredible and agile that our takeaway entrepreneurial growth

to I'll turn Now over things Jimmy.

I'll an sheet. good provide Thanks, everyone. briefly afternoon, quarter discuss results financial second balance Jon, our update the on and and

$XX $XX For of the loss per share operating loss $XXX a adjusted of quarter, $X.XX Lionsgate's was consolidated earnings and million diluted income $XX million, revenue OIBDA million. was loss per fully Reported of was a was was a diluted a Net activities share. for adjusted share earnings fully flow million, and cash was use per adjusted of per while flows cash quarter $X.XX was the share $XXX in used free million. of loss operating

theatrical impact scripted to along segment OIBDA Jon high-margin prepared has This and primarily with forecast in of our in The driven fiscal of some particular, our in in revenue reassessment both see Borderlands million reflects should generate a million our Lionsgate noted Studio's Group, lower We update fiscal remarks, Picture his increase within quarters, adjusted Motion theatrical an adjusted series the recovery next recent Studio $XXX of post 'XX outlook $XXX the Lionsgate the OIBDA profit of over deliveries. X television post-strike strengthening financial now will television between business. releases by As and outlook. Studios necessitated wide to year. revision underperformance this the

With million respect or year generate anticipate business more in continue its will to that fiscal adjusted American $XXX 'XX. OIBDA of Starz, North we to

year Media Now businesses and Studio of let quarter. second the to performance me fiscal previous Networks the compared briefly quarter our discuss

revenue was Studio Studio profit to Library border million. relative last an $XXX year. year's while X.X% due quarterly in months revenue X.X% revenue releases the QX XX the $XXX in film loss was spend Revenue million. Breaking revenue. impacted Motion Picture. the while Studio lands the profit million the was in $XXX while businesses, of million start segment previous $X.X with was grew XX down quarter to theatrical associated for year-over-year grew OIBDA let's increased year-over-year unfavorably releases, the months P&A with adjusted with by Starting and $X business, trailing number Picture the million, Trailing quarter of higher of up increase X.X% segment a increase to to Motion versus

the losses international on guaranteed post theatrical some the film's of and contractually size was tax of given outside would financial of mitigated and Borderlands credits the outcomes deals output film, range While we underperformance its the the film underlying presales, cast size budget. this IP expect, of

release and every learned lessons is As valuable Borderlands no always, we from exception.

We the future. reduce are the processes in go-forward confident a that will outcome of our help likelihood similar

we theatrical industry outsized release our financial our achieve continue evolves to to the picture make overarching returns can adjustments release as strong that refine will motion continue and strategy and model We wide without risk. believe

Quarterly of $XX U.S. revenue Moving down expectedly from to Starz implemented a revenue year-over-year price $XX Media existing revenue million American in $XXX pace of subscribers our markets. million OTT $XXX is the due segment year-over-year to driven of of due $XXX profit linear exit growth international by September. $X post-strike as profit million month offset while North all was declined quarterly the increase up was the X.X% was pressure. flat substantially by of its was of essentially across was TV. year-over-year and the segment deliveries Networks' to million. to higher revenue million, Television year-over-year, Revenue recovery. Starz, expectedly Quarterly

We and revenue growth December quarter. continue increase the expect will to increase ARPU sequential price drive an this in and in

million North spend. profit X and American higher of increased amortization, Pay X lower year-over-year was partially $XX by Pay segment content reflecting film originals offset content on down output

ended we the a and XX.X year-over-year. million price that accounting subscribers decline for OTT This Starz America Starz revenues. of expected pressure sequential our American OTT X.X% fiscal million. to was million ARPU focus total increase with XX% ended 'XX on revenue with North quarter forecast quarter with North we Additionally, American driving September long-term as the X.XX subs, of XX.X growth. will alongside continue representing its exit down We North

expect to North December in sequential the OTT to continue Additionally, American return growth a subscriber we quarter.

the balance let's take at a sheet. look Now

timing million ended the cash at of Studio delever with is increase Starz $X.XX debt Xx, On Starz. American business billion net the the basis, allocation at We and X-wide in films. May at theatrical a North Starz leverage at was business. of reflects use in debt of we with release quarter spend content reflects expected net $XXX leverage net its was the from The the debt quarter post-strike associated debt company, XX-month net its of studio which billion $X.XX for Xx. both consolidated and the initial the of trailing as stand-alone Lionsgate down meaningfully $XXX million Starz the end the consolidated while

stand-alone substantial and Starz. prepare for we have end calendar for in establishing full capital Lionsgate of by structures As separation we progress the both made the year Studios the 'XX,

collateralized of In the quarter, our by library portion we closed assets. X IP-backed a facilities

Term $XXX plus portion the facilities announced supported million Both was to by facility IP the travel $XXX with were while previously the from facility the completely Studio's primarily our of a pay facility Studios this will and Term rounds tenure at And billion raises these at by first library, revolving in favorably IP The IP years favorably off extended Lionsgate million capital the and EX credit of on $X The post-separation B just second and the as X quarter were out upon B. used Loan separation. structure. paid end. million capital of of Library. proceeds facility is Loan and borrowings asset-backed backed week, portions reflected Lionsgate with closed priced points SOFR another priced XXX over significantly basis down $XXX an the balance a we This Lionsgate sheet our marks

the complete Starz that separation track to We on also the financings Studios. and capital fund upon will Lionsgate and both of complete remaining are structures

half cash to fiscal television continue be noted by a flows, before, weighted post OTT theatrical consolidated and adjusted that significant will adjusted subscriber a the and to increase of cash we increase in growth. remainder flow OIBDA deliveries Looking slate price company's return Starz free driven forward forecast XXXX, the to we as second

X.Xx Studios we over end for XX like months expect call the for Xx to approximately I'd year should Starz, now leverage such, trailing As and And at to Lionsgate and Q&A. respectively. Nilay the turn

Operator, up could Q&A.? call open for we the

Our Instructions] Yeh Thomas [Operator from today question first Stanley. comes Morgan from

Does the it mentioned zone and if at swings, into willing look should existing deeper franchises the film should big evolving about your budget how measured Jon, light How the of talking we about Are but approach. of about films between approach. comfort? to you're all? we some build also process think more? I tapping revolve ask wanted the you as a we to to balance around How kind of that's approach conscious types you production to about you're new IP? oriented the of green changed think redefining

I'm going to let Motion the Adam, Chairman Picture answer that. Group of

that talked a it's things So the of about. look, combination you I think all

company But the that physical creative on research. an side, making production, done on the creative marketing, production, job extraordinary disciplined models. sure and risk-mitigated that of think think both on at I that looking being I has on on financially

there taking Motion creatively into Picture are ways think we're company other decision-making Group of the best-in-class. process to elements the financially, both I of incorporate advantage of and that so the

We with franchises into going on AAA The saw an the coming for the because are the the space of experience and audience book what is out, and and extraordinary. us in Games from with on appetite same we're the franchise, John about Games audience the for to the number of do Hunger excited future same game appetite really is television asking Wick have Highlander. that the The that's extraordinary theatrically, means it. live that we be Hunger is incredible, leaning for

sure filmmakers be with creative to what So in we're the production, there but that production the develop, not films kinds are right physical financially with with we only in be will make, with our of we going make emphasis marketing, bring an disciplined, distribution market. and super to to continue aligned we but what extra to with to

think the rationalization a what help at sounds a of streamline workforce. how to decision maybe much us that bit TV Can like is Okay. -- greater Understood. little of And U.S. then through addressing the Film on anything Starz? Any it be help how functions, or seeing business would that helpful. an you're to at more opportunity run going with or through and flows particularly efficiently, which areas versus you what even as

X% our [indiscernible]. Again, just in Yes.

I you be in as have the this you think trough that's part in disruption, shareholders think When the business. overall aligned can business be. we our we have a when of our as with overall environment, to I rightsizing want

And little opportunity most I of than amount fair episode. this structured a quarter, think to we we actually be I I this it's swing overall, efficient. and of sense more business be typically to in that is to. to expected. think have is the carry an to, for I say, the ways an back about applied lots we didn't structured business is of get little nonfiction a We we overhead, to think our are that against swing big as orders which we rightsize our business. And too have a bit some the opportunity back, to business little cycle going a about where the wait differently say that But smarter you would of gets our we this think

on trailing you're And broader million? or out? the the $XX to eOne year-over-year is affecting pressure mean if I strip update not or on path update also towards continuing well? And library we're just that any Jimmy whether is you eOne. XX-month maybe think that TV seeing revenue I see cited, as the down that if the us And give an

would that Keep comp. was helping definitely included eOne in trailing amount library very the XX-month have fully while mind trailing year which the as the in fairly Creek, expected. first. nice and XX me months comp, integrated been let in Remember Ships prior a has prior the prior outsized our Yes, certainly it's trailing we take XX-months

up So despite actually, we're that.

like We successfully from that teams the the into I seeing with well. then killing integrated TV Rookie, very over great tracking It's And and We Yellow we're a on integrated Very certainly, there. team asset. to happy library great And asset. both completely Jackets. asset. spoke The strong to this our business, helps, Packer this side, sales. sales. but eOne. library a Recruit they've obviously, It's completely We're his eOne

be a Jim. The would long-term renegotiate. little is say asset bit for of proving that a to really eOne us to Yes. is work requiring This is I Rookie thing.

in my XX you'll and trending deals, think I all returns. I'm above I start We're redoing our some think real We're budget, countries. already optimistic. the to top feeling very but see

Fargo. next comes Cahall Our Wells from question Stephen from

-- in when took saw you you you you do year, enter then with anything first Was are as Jeff, the to how grow look about just your million planning it And $XXX price Maybe out expectation? next can churn can to you what in you this different that? quarter the talk increase? How line perform And of you in period are off you EBITDA? do feeling Do you as about separation. the play? the

in talked Jeff. studio. about I their does Kevin. what TV conversion look that know maybe cash think there, this to as TV side, But then on also, of EBITDA a just like today question a production delever? look Warner that the And a is momentum seeing And I you'll for Bros of they're in that's lot lot

you're So Do particular? worry what losing cooler as water in in originals do some I increase that the production, aren't TV share do you to to especially you you do think separate? rate Studio the Or wonder at can if success looks market necessarily challenges of industry-wide?

-- put $X into Thanks about, it's I we for rate Jeff. this the Look, we think increase question. dollar Steven, as business we talked the quarter.

a of from the year's last a think rate of did that job phenomenal I with lot executing learning increase. team

So in the actually expectation we of on in business came on terms subscribers. terms our right in downward of the pressure

year-over-year. spike does ARPU see can You

OTT healthy that sent Outlander quarter. the in third we're them and in Raising about we we fourth bring XX flow days, think and seeing back so of second actually very Canon, I And slate, the good into to feel with the through that. half growth both this and about about very film into year the the business feel start good we coming when

$XXX feel So finish the to year. this very we million about good

years. of cash and But higher lot the in baseline really couple and to flow of some as conversion think our of payments good our million you'll do normalize the million. the I for do cash Heading schedule, we start there's a strike actually the you'll our unlevered business a about library start start owner also of that business. of next as out to in feel amortization I period $XXX on back us separation, kind into COVID think start opportunity align I post for see against economics see put build the that to again with the to free $XXX to

that So to somewhere the we range move I'd in XX% expect be as forward.

There little of continues your end million. business question, tail us we're of other that our of a seeing business. lot through state help the to this gives been the that think a is a very think a I disruptive really and grow conversion $XXX shutdowns for free it and at year And what to and flow international cash I against opportunity some of really is D.C., to that have period do our in things work for the to as focus help a the but business still pushing we'll free conversion the down, good cash get little flow unlevered

Kevin speaking. It's

to follow comments important cadence Jon get in scripted touched to production. over the But resonate overall of development development end some new projects we're seeing into the from Warner XX developments lots be the his That increasing, strike. Just market. moving and opening remarks. I we're is we're to really of the in on those since conversion, about toward on seems was encouraged TV from which sold of in and it by certainly that the we green Discovery. shoots really side. And the questions

deal With X been Paramount who as And These big they We're Warner we're a us, struggling, but key SkyDance for waiting more not turning touched players, concludes MGM+. buyers. for destabilized, us. We're is -- scripting. corner. into they're new and it USA are that's great like for looks has there. on move that. and into resolve We stability, but around back finding buyers

out there. big day originals find at the we're subsidiary got beating new series every bushes through Canadian our We there to with a have Robinhood, buyers. Hallmark+, We've

stronger long-term ever. Starz with Our partnership than is

Spartacus, the part and pun and Verse. powerful and right it years -- fantastic most production the to into post Power for X the do a on it right we're into really and is moving which going hopes what first to -- for behind the high around We season distinct franchise, Power is production franchises, of and is have of come. which now partnership But that's are The BMF

touched and is the acquisition. The is perspective short Jim And the a of drivers first eOne one department Rookie, an really Rookie strong renewals original season. short had current in We which key important. -- on from getting the strike behind a

made overall we're a We're have We full we and the spinning of about middle Season make. of it discussions with renewed in X off, season Creator talented Rookie that Behind, on in which other has which in Recruit, and an deal a around work strong led to Alexi addition all will The to premiere development Holly, his in on The town sometime early 'XX [indiscernible] Netflix.

own John are all leaning Wick premium IP, space. competitive touched television. John we're we're things that those in into excited about we're and our on things quite to Twilight moving addition all into These in the So feel

comes Crockett question from Our Barton from next Rosenblatt.

a year now shows we're a of supply for and to the plus little was but -- talking depressed understand I ago driven, and coming to a results a going on this weren't if happened TV little of kind kind -- what this of resolving? understood able like demand-driven how better As of can. out A of couple of And is questions, bit. that pandemic market kind one production see correction I dynamic. bit the in issues We it you about then One right? really just make

enough But maybe need not although now. for that's There's content. these demand operating. shows, resolving networks still are They still

buying rerunning stuff some making That's in-house, other putting I'd they're air? was still curious. shows, can not you they're suppliers? be question. just then that what if that but content it And longer, that, one is how behind So Is elaborate, buying on stuff

with just I as -- over of the that's part new happening progressing note, if process, I'm on the some some that on Studio moved to and replace that the just generally some given need separation, the then around to wondering know just Starz, -- Starz and of And under how you -- of were guys stuff of you're from that? a volatility you some And concerns the Starz. separate at you what's to raise could elaborate just financing just with

Okay. along I'll constraints there, is into financial Yes, but it. the demand It's with Kevin. one. the go jump part

of from with it is what location one can lot that orders of go further? you're that Or less subsidies? XX instead a and out to those perspective, maybe it's or XX, making or take original So same a generous dollars gets show finding an production you shortened X expensive do or tax less XX,

flexibility. angle into Every here looking is we shooting over ultimate Jim his buying which they a move that when team and is Jeff give -- more that we're always with original. becomes and the we library little that than good which original [indiscernible] The library vast less to the more is world, because alternative library, Los predictable an to on bring have I news a touched Starz, is often expensive do can budget for the We're to The shows We're We're together if Angeles. downward net franchises price see shooting we potential the advantages. looking table. world. the the have, on all in

flexible kind drive platform to But with want partners. possible, make as we is extent go network we and library market. to we many first way, be solution that To that our be to earnings and as of have choice. the and can either the original a So programming revenue, build our

structures part two the financings. very here. process. layering in to very of to We're your capital two our And Barton, with question, in confident. We're We're regards with respect good

in great as conversations You've bonds, on travels with billion were A, facilities us at the in seen IP as process closing place that with both now well good oversubscribed Loan well. We we just studio, which layered the very of Term banks, with as in Starz completed. that are execute a We're I'm having $X Studio, Starz right the pricing. very on confident our and out about the

lay will several all at in teed this the separation. And side, happen funding in their have on borrowing Studio up base traditional of weeks, for and next facility. And the we'll we'll

from question next David Seaport Research Our comes from Joyce Partners.

change on a and Michael I looking cable With strategic this. thoughts now had if pending as having alternatives the on industry? I in had your consolidation networks going separating you its a and light your what views separate sense in and out there's could make forward? bigger was entities. -- administration get Studios Especially you've of a could Comcast picture wondering just I the strategic Starz question, D.C. What at John soon or are in

them key Thank for in optionality. Yes. to and the own business of separating on in prosper focus allow them space businesses to its Well, and is -- their start obviously, rationale each you, with, to give their core own David. the

huge obvious the about think to there's I happen in it's business. dislocation

and really questioning think, resources? some buyer going whether best taking people allocate to between certainly, is are the natural they're integration away idea this start I seller works to of tension really way where -- vertical the

to of be there's out going sure, of dislocation, be pieces, relocation. a And for a there's going But movement conglomerates. after to the lot of these lot I I believe, think of

of be the a to I I on is our within separation say extremely think those be And would both I ask I And likely. me in optionality, if that will of going be so what flexibility. general say, our And think -- M&A lot involved going strategic will of you there's size would conversations the would and I say that's in business, I after change. would conversations. say

next get please? we can Operator, question,

from Instructions] Brent from Penter James. Our [Operator comes Raymond next question

on Film. Michael the delay with reports saw a I

year, maybe where in slate big get next the on You So any on See the Me. just are process delay theatrical then be for updates Ballerina, good that rest it thoughts year? tent on affects next curious that And the to of the film? for other you Now would how poles And

It's Thanks question. the Adam. for

we all going the lot but April. we poured of were it's and to if, the dailies interest that movie. of extraordinary, But to But going to there's obviously the on yet ready it formats cut fact, in are target they claim a ready. a first see film. wanted the space large to race most have before of through out always be it to possible hyper we have movie come Michael, because aggressive for never for was have we having We of were been that on It the

for could cuts excited weeks, have what early few to be perfect of it to start summer sees the just success fall given everyone in sense expect going the actually The financial made that is opportunity of The We And and that that late team to corridor, film. just Bohemian the more has Rhapsody we'll movie the not see of that as opportunity that truth opportunity had filmmaking slot all use is trailer play. the movie, it in and quality what to corridor. in with the the our into extraordinary next be, of we

in did think joining John was encouraging very trailer companion at had extraordinary enthusiasm Las well. and to what American to a already another film the the job. enthusiasm, just fully audience time on lot the is footage I to this dated have Balarina our that on terms was some and real that Fleisher, wrapped year we of Me, November. Ribbon had will budget early the slightly have getting See been and there Keanu and for we A+ from market a And excitement that chance an the movie views. show that's terms I corridor on sparked partners, and was the in it under immense very, movie, launch number that June crafted on in we and that You and we just after did director in film, production tremendous a are like the as see and And a the excited Now foreign that enhancements felt early expect response and incredibly movie, see stick encouraging, movie to extraordinary of of tracking of screenings movie of Wick Vegas

So the together. slate coming

the has Aziz -- We screened People will done. to corridor, fortune Seth you movie. excited and really tell good that, and easy also movie what that very I are that Keanu see have well. dated in for and recruit together a Also October extraordinarily absolutely

next has offer. are to to what much looking very So year we forward

far little with who on the and benefits then community? creative what's about partnership that then AI And initiated Great. the bit what been came runway, from can And it? you how tangible a do so the expect? feedback you And about just talk

us. were with where us I going to as And of world to going AI. doing the we started to of [indiscernible], propel to And puck partnership runway as diligence due started is. our It it headed, paraphrase opposed in lot them think to we very I is where if us the a guess they much did is to with is

it. doing lot public We've about talking such So filmmaking going not together. community. We're we're it. become much incredible But we made to about a we're and excited is comments an about for this what the think very tool enhance

once would But to would it I Adam. on I add reported. was questions is this had it what partners, filmmakers partners, it talent our for exactly is We've used, was, what be isn't. think there think say clarified filmmaking for our when just And this how and and already. using support some were what I our that are first we it great it

we get question, could Operator, please? next the

Research. have we Barrington this comes question, Shultz from additional do And an from Patrick

like through you in I you causing it's sort in and was marketing -- are theatrical reevaluation like wondering how is that kind the performance undertaking? a what if the the current efficiencies very your just if maybe understand I was more break the and important. how difficult pursue wondering environment I guys reevaluation efforts? releases, is On of to of quarter

Yes. Thanks for the question.

what non of last is look what is was to succeeded course more think I movies make truth decide between and what the quarter, over tentpoles could correlation real has when there rethinking think reevaluation to you have do the rather you than spent at with -- being results look, I marketing. identify is were. the the and price we at that money how much the no The that

Legs business a genres modest in P&A spent that ton a spend dollar Long bunch sub-million significantly Terrifier at business did disappointing of of very spend, performed on a to tremendous a we did more than a movies level. and a spend tend with similar

think a will that creatively the with force making marketing a that audience will want great the I movies that carry proposition an It focus movies about. audience that see on be don't will making attention never choice to pay with filmmakers pay force make that also and conscious to audience but attention. and greenlighting But can something to you're they to have talent So see. and them sure to

ultimately how here going what funnel determine think gets I happened to doing our to radically that is through, business. what we're is change not the narrow has but

Investor under forward-looking non-GAAP Thank discussed website of Tab the certain of discussion section a you. everyone. call. Thanks, Please our the to refer Relations Press and Releases Events company's this on for measures

today's conference thank attending presentation. the concluded. We for gentlemen, and Ladies has do now you

You may now disconnect your lines.