Starz Reports Higher Q3 Profit, Confirms International SVOD Launch Plans

ENGLEWOOD: Starz delivered a profit of $55.8 million in its third quarter, with revenue of $408.2 million, as subscriptions reached a new high.

At Starz Networks, revenue in Q3 increased 2 percent to $327.2 million and adjusted OIBDA increased 3 percent to $109.9 million. The revenue gains were primarily a result of rate increases from various distributors. Cash paid for investment in films and TV programs increased $14.4 million to $57.5 million, due to a greater number of original series in production.

Within the distribution unit, revenue decreased $44 million to $73.5 million, largely as a result of there being no significant new releases from The Weinstein Company or of any Starz original series. Adjusted OIBDA decreased $6.7 million to $600,000. Cash paid for investment in films and TV programs was down $35.3 million to $29.4 million, due to timing of payments for previously released Weinstein titles.

Starz subscriptions increased by 500,000 since September 30, 2013, to a new all-time high of 22.5 million.

“Our business continued to perform nicely in the third quarter as Starz Networks reported solid revenue, earnings growth and we reached a new high in Starz subscriptions of 22.5 million,” said Starz's CEO, Chris Albrecht. “We are pleased with the traction of our original programs. Outlander had a strong debut, viewership for Power finished up with great momentum and grew its viewership throughout the first season, and Survivor’s Remorse continues to receive significant critical acclaim. We are very enthusiastic about our 2015 slate of original programming, which is the deepest to date and launches with the second season of Black Sails in January. As demand for our content increases worldwide, we are providing subscribers multiple options. Recently, we confirmed details of a new partnership to offer Starz PLAY as a direct-to-consumer streaming SVOD service in select international markets and featuring Starz original series.”