Starz loses more than 500,000 subscribers after splitting with Lionsgate
The first quarter of the media company’s independent existence saw a loss of almost 500,000 subscribers in North America.
The data released on Thursday showed that Starz’s income decreased by 8% from April 1st to June 30th.
The independent media firm had 12.2 million streaming customers in the United States at the end of the quarter, compared to 13.04 million the quarter before it broke away from Lionsgate. There were 17.6 million domestic users on all platforms, down 410,000 from March.
With Canada included, the overall number of subscribers in North America fell to 19.1 million, representing a 520,000 consumer reduction. Starz attributed the 110,000 drop in Canadian subscribers to “continued linear declines and lower OTT subscriber additions.”
The business reported $319.7 million in revenue, but a net loss of $42.5 million, or $2.54 per share.
“We have made great strides in accomplishing our primary financial and operational goals in the three months since we became a stand-alone public company,” stated Jeffrey Hirsch, president and CEO of Starz. As evidenced by the third-highest subscriber gains for a series launch in Starz’s history following last weekend’s premiere of “Outlander: Blood of my Blood,” our content strategy is still effective with our audience. Going forward, our extremely attractive slate and enhanced cost structure set us up for success in reaching our main goals: boosting our conversion of Adjusted OIBDA to free cash flow, growing our margins, and resuming revenue growth.
After three years of negotiations, Starz finally separated from Lionsgate on May 7th, and it now trades on the Nasdaq with the ticker STRZ.
The business reported a 6.2 percent decline in revenue for the January through March quarter, $330.6 million, and an operating loss of $136.3 million earlier in May.
