Why "Hunger Games" Matters So Much to Lions Gate

Before you go, we thought you'd like these...
Before you go close icon

Lions Gate's latest movie in its Hunger Games series, Catching Fire, has been doing very well in the box office. The film has already collected $300 million in box office sales domestically and about $600 million globally, on track to outperform the first Hunger Games movie on almost every metric. Despite the movie's success, investors are disappointed. Apparently they had higher expectations for the movie.

With the company's stock down about 10%, it suggests Lions Gate's overall corporate results are highly dependent on the movie. Is this really the case? It is. Unlike Walt Disney , which has a very small reliance on its motion pictures segment (10.4% of fiscal 2013 operating income), motion pictures play a central role in the company's results.

In the video below, Fool contributor Daniel Sparks weighs in with the details on why Lions Gate's business is so dependent on the Hunger Games franchise.

How to secure a stream of income with your next investments
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

The article Why "Hunger Games" Matters So Much to Lions Gate originally appeared on Fool.com.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

People are Reading