Starz’s First Year Alone: CEO Jeff Hirsch Talks About the Company’s Strength After the Lionsgate Split
Starz reported a mixed performance for the first quarter as it marks its one-year anniversary as an independent company, following its separation from Lionsgate. The company continues to balance its offerings in over-the-top (OTT) and linear television, enhancing its programming with new original content.
Shares experienced a boost after the announcement, rising more than 3% in late trading, reaching $20.80.
In a trend shared by networks like Netflix, Starz has ceased reporting quarterly subscriber figures.
Jeffrey Hirsch, CEO of Starz, stated, “As we mark the one-year anniversary of our separation today, I’m proud to report that Starz is a structurally stronger company than when we separated.”
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Total revenue declined by 7% to $307 million but exceeded forecasts due to better-than-expected OTT revenue, which accounted for $211 million, down from $225 million. Meanwhile, linear revenue decreased to $96 million, down from $105 million.
Net losses widened to $165 million, up from $154 million in the previous period.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $58 million, alongside equity free cash flow of $69 million, both surpassing Wall Street expectations. Additionally, Starz has advanced its margin guidance by one year, projecting 20% margins by 2027 instead of 2028.
“Over the past year,” Hirsch commented, “we have executed with discipline against our strategic and financial priorities to position the company for long-term value creation, and we delivered a strong start to the year, meeting or exceeding all of our key financial targets. Given our progress and one of our strongest content lineups we’ve had in years, we are increasingly confident in our ability to drive OTT revenue growth, reduce leverage, expand margins, and generate sustainable free cash flow in the years ahead.”
Starz, known for hits such as Raising Kanan, Outlander: Blood of My Blood, and P-Valley, recently announced a premiere date of July 31 for its first owned original series, Fightland. The company is also moving forward with a second project, an untitled Black rodeo show.
Management is scheduled to host a call at 5 PM ET.
More to come
