Lions Gate share price increases after the success of Hunger Games

Lions Gate share price increases after the success of Hunger Games

Lions Gate Entertainment found a pot of gold. When the television production company Summit Entertainment film and bought in January, the deal came under one roof for teen’s lucrative franchises as "The Hunger Games" ("The Hunger Games") and "Twilight" ("Twilight").

The first of four planned films "Hunger Games" broke the record for a movie that is not following the other with $153 million in the U.S. and Canada over the weekend. The figure beat expectations and gave the film the third best opening ever. And the end
of "Twilight" hit theatres in November.

These two movies could generate about $450 million in combined revenues, estimates analyst Cowen & Co. Doug Creutz. Only the adventures of the heroine Katniss Everdeen arc could result in about six to seven years of big profits, Creutz said, adding that
Lions Gate could make its first profit in five years for the fiscal year ending March 31.

More than two thirds of revenues come from the Lions Gate film, so his first movie blockbuster is very important. The producer had survived basic movies like Tyler Perry’s comedies and horror movie series "Saw". The remaining revenue comes from television
productions as "Mad Men," which began its fifth season on Sunday. The company does not get paid for ads on the hit show, but the popularity of the series makes Lions Gate remains in demand as a producer. It also boosts DVD sales and income from broadcasting
rights granted.

It also prepares another program: "Anger Management" with Charlie Sheen, premiering in June on FX. If the first 10 episodes work well, the company will sign a contract immediately for several years. Lions Gate shares rose more than 75% this year, which is
not surprising given the great expectations prior to the premiere of "The Hunger Games". However, a better than expected result was that several analysts increased earnings estimates for the producer.

The only two movies that have won more than "The Hunger Games" in its premiere weekend are the final "Harry Potter" last year, which grossed $169.2 million, and the Batman movie "The Dark Knight "(The Dark Knight) 2008, which totalled 158.4 million in its
first weekend. Some analysts say the shares of Lions Gate could reach or exceed $16 next year. Ballots for the company rose 65 cents, 4.5%, to close Monday at $15.18

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Posted by Fahad Zafar on Apr 5 2012. Filed under Hollywood. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry