Lionsgate CFO Says Strike Is Squeezing Management And Production Subsidiary 3 Arts, With Roughly $30M Quarterly Revenue Hit; Expresses Hope For “Mid-Fall” End To Walkouts

On: 2023-08-10

Lionsgate CFO James Barge said the dual Hollywood strikes are hurting revenue by roughly $30 million per quarter, with the brunt of the damage suffered by management and production division 3 Arts.

“In our assumptions, we have built in an assumption that the strike goes through the September quarter,” Barge said during the company’s quarterly call with Wall Street analysts. “That was about a $30 million impact. As you can imagine, it primarily impacts our talent management business, 3 Arts, and television in that context. So, we factored that in. If it goes longer, it’s a similar impact, probably, as it rolls quarter to quarter. If it does, we’re hopeful that things get resolved and we’re back to work in the mid-fall.”

Lionsgate Postpones Split Of Starz And Studio Until First Quarter Of 2024, Citing Strike, eOne Deal And "Disruptive Marketplace"

Labor

Bob Iger Wants Strikes To End "Quickly"; Soft-Talking Disney CEO "Personally Committed" To A Deal As WGA Strike Hit 100 Days

The WGA strike has just marked its 100th day, with SAG-AFTRA’s walkout a month ago only adding to Hollywood’s pain. No talks are currently scheduled between either guild and the AMPTP.

Barge offered the comments after Lionsgate released solid earnings, with results ahead of Street expectations. He noted on the call that the company has reaffirmed its full-year financial guidance despite the strike hit.

Lionsgate took a majority stake in 3 Arts in 2018 in a deal valuing the management and production firm at more than $300 million. Four years later, the company bought a minority position in London- and LA-based 42, another management/production outfit, and formed a three-way relationship with 3 Arts aimed at maximizing TV opportunities.

Lionsgate’s investment in 3 Arts has already led to partnerships on series including Mythic Quest and Manhunt for Apple+, Julia for HBO Max and The Serpent Queen for Starz.

Lionsgate CFO Says Strike Is Squeezing Management And Production Subsidiary 3 Arts, With Roughly $30M Quarterly Revenue Hit; Expresses Hope For “Mid-Fall” End To Walkouts

Related Stories

Lionsgate Postpones Split Of Starz And Studio Until First Quarter Of 2024, Citing Strike, eOne Deal And "Disruptive Marketplace"

Bob Iger Wants Strikes To End "Quickly"; Soft-Talking Disney CEO "Personally Committed" To A Deal As WGA Strike Hit 100 Days

Must Read Stories

“Milestone Of Shame” For AMPTP, Guild Says; Strike’s Film/TV Impact; Photos; More

Cuts Streaming Loss In Q3, Takes $2.4B Charge; Iger On Strikes; Price Hikes Coming

A+E Networks Shakeup Sees Amy Winter & Tanya Lopez Exit; New Lifetime Chief Set

The Band Guitarist Robbie Robertson Was 80; Read Tribute From Martin Scorsese

Read More About: