Starz Reports Q2 Results

ENGLEWOOD: Consolidated revenue at Starz fell by 4 percent in the second quarter to $402.6 million, with operating income down by 5 percent to $105.4 million.

The company, which is in the process of being sold to Lionsgate, delivered a 3-percent revenue gain at Starz Networks to $343.1 million as a result of rate increases from various distributors partially offset by lower average subscriptions. Operating income increased 9 percent to $121.1 million. At Starz Distribution, meanwhile, “fewer significant new release titles from The Weinstein Company” was cited as the main reason for a 23-percent fall in revenues to $60 million. The segment reported a loss of $5.4 million.

Chris Albrecht, Starz’s president and CEO, noted, “We performed very well in the second quarter, delivering strong financial results at Starz Networks and establishing a new record high of 24.2 million subscribers for STARZ. Outlander and The Girlfriend Experience grew viewership across multiple platforms demonstrating that our original programming continues to make Starz a ‘must-have’ service for consumers. We are thrilled with the record-setting viewership for the third season premiere episode telecast of Power and look forward to a strong third season from the critically-acclaimed Survivor’s Remorse. The new STARZ app is proving to be an enormous value proposition for consumers, as people look for additional ways to access our highly rated, award-winning and diverse original programming and vast library of movies. We were excited to announce the planned merger with Lionsgate, which will enable the combined company to capitalize on content opportunities across multiple platforms. As we move forward, we are confident in the prospects for Starz and believe that we can be even stronger in combination with Lionsgate.”