Starz, after recently breaking away from its former parent company Lionsgate, has released its financial results for the first quarter of the year. The company’s fourth quarter of fiscal 2025 saw a total revenue of $330.6 million, a 6.2% decrease from the previous year, and an operating loss of $136.3 million, compared to a loss of $30.8 million. Despite the decline in total subscribers due to the loss of a carriage agreement in Canada, Starz managed to gain 470,000 streaming subscribers, bringing the total to 13.04 million.
The financial report includes a restructuring charge of $177.4 million, with a significant portion allocated for content impairments as part of a strategic reassessment of the company’s content portfolio. This initiative is aimed at aligning operations and cost structures following the separation from Lionsgate. Additionally, Starz exceeded its adjusted operating income target for fiscal year 2025, reaching $201.5 million.
Following the official separation from Lionsgate, Starz began trading on the Nasdaq under the symbol “STRZ.” The company announced a change in its fiscal year end from March 31 to December 31 and will start reporting earnings per share with the quarter ending June 30, 2025. CEO Jeffrey Hirsch highlighted the company’s focus on rebuilding its content library, enhancing cost efficiency, and creating new revenue streams without incurring additional overhead costs.
Starz plans to increase its ownership of content and reduce cash content spending to around $650 million in the coming years. The company had a net debt of $559.1 million at the time of separation, with efforts to manage debt levels moving forward. The Starz Networks segment saw growth in U.S. streaming subscribers and total subscribers, driven by the premiere of original series “Power Book III: Raising Kanan” Season 4.
Despite a decline in North American subscribers due to a carriage dispute in Canada, Starz remains optimistic about driving OTT subscriber growth and expects a return to positive revenue growth in the second half of the year. The upcoming slate of tentpole releases, including the “Outlander” prequel and the return of “Spartacus,” along with a strong lineup of output titles, positions the company for continued success in subscriber and revenue growth.
In conclusion, Starz is navigating its new path as an independent entity with a focus on content ownership, cost efficiency, and revenue growth. The company’s strategic initiatives and upcoming releases signal a promising future for the premium channel and streaming service.
