Lionsgate and Paramount report Q2 reports lack of box office performance

Lions Gate's revenue fell nearly 9 per cent from $449 million to $409 million. Profits also fell 6 per cent from $43.3 million to $40.7 million.

on August 7, Lions Gate and Paramount parent company Viacom released second-quarter 2015 results. What they have in common is that they don't perform very well.

Let's first take a look at Lion Gate. Compared with the same period last year, Lion Gate's revenue fell from US $449 million to US $409 million, a drop of nearly 9%. Profits also fell 6 per cent from $43.3 million to $40.7 million.

the decline in the film division is the main reason. Compared with the same period last year, Lion Gate's film division revenue fell from US $331 million to US $275 million, a decline of nearly 17%.

Paramount performed worse than Lionsgate. Paramount's film revenue reached $856 million in the second quarter of last year, compared with $479 million this year, a 44 per cent drop.

for Lions Gate and Paramount, the fundamental reason for their poor performance in the second quarter of 2015 is their poor creative ability, although sometimes they can produce some "popular movies", but most of the other time, the two studios are unable to come up with good works to attract the box office. Therefore, the performance of these two companies is always up and down, not very stable.

take Paramount as an example. Last summer's "Transformers 4" swept the global film market, so Paramount made a lot of money in the second quarter of last year. But Paramount couldn't come up with such a work this summer, and it makes sense that its income has fallen sharply.

the same is true of Lionsgate, which had only one movie, Lovers at the end of time, to support the scene in the second quarter.

the two companies are also well aware of their difficulties, so they are also looking for ways to increase film production. At an analyst meeting after the earnings announcement, Viacom CEO Philippe Dauman said Paramount has only produced five films so far this year, and production is really not enough. However, Paramount hopes to produce 15 films throughout 2016.

Lions Gate also said it hopes to produce 13 films that can be released worldwide in the remaining three quarters of fiscal year 2016 to help Lions Gate further improve its performance.

Edit: yvonne