Fourth Quarter Revenue was $330.6 million
Fourth Quarter Operating Loss was $(136.3) million
Fourth Quarter Adjusted OIBDA was $93.3 million
Fiscal Year Operating Loss was $(164.3) million
Delivers on Fiscal Year Goal of $200M Adjusted OIBDA
Adds 530k U.S. OTT Subscribers in Quarter; Total U.S. Subscriber Base Grows Almost 2% in the Quarter
SANTA MONICA, Calif. and VANCOUVER, B.C., May 29, 2025 -- STARZ (NASDAQ: STRZ) today reported results for the fiscal quarter ended and year ended March 31, 2025. This press release includes total and segment financial results for Starz Entertainment Corp.
"For the quarter, we are very pleased to report the company's strong operating and financial results, and excellent subscriber growth. We delivered significant U.S. OTT subscriber gains, growing the total subscriber base in the U.S. by almost 2%," said Jeffrey Hirsch, President and CEO of STARZ. "Despite having a strike-impacted slate this year, we delivered a strong fourth quarter and generated over $200M of Adjusted OIBDA for fiscal year 2025."
Fourth Quarter Results
For the fourth quarter, STARZ reported total revenue of $330.6 million and operating loss of $(136.3) million. Adjusted OIBDA was $93.3 million. These results include a restructuring charge of $177.4 million, primarily related to a strategic reassessment of the company's content portfolio. This initiative is part of STARZ's broader effort to align its operations and cost structure as a newly independent, standalone public company.
For the fiscal year, total revenue totaled $1,369.6 million and operating loss was $(164.3) million. Adjusted OIBDA was $201.5 million. The company remains confident in its financial trajectory and continues to forecast approximately $200 million in Adjusted OIBDA for calendar year 2025.1
STARZ ended the quarter with $715.0 million in senior unsecured notes, $17.8 million in cash, and an $81.7 million intercompany receivable from Lionsgate, which was settled at the time of separation. This resulted in total net debt of $615.5 million. On a trailing twelve-month basis, the company's total leverage ratio was 3.1x.
At the time of separation on May 6, 2025, STARZ had debt of $300.0 million under its new Term Loan A facility and $325.1 million in senior unsecured notes that remained with the company, offset by $66.0 million in cash. Net debt was $559.1 million. The company had no borrowings outstanding under its new $150.0 million revolving credit facility at separation.
The Starz Networks segment, which includes operations in the United States and Canada, ended the quarter with 12.3 million U.S. Over-The-Top (OTT) subscribers, representing sequential growth of 530,000. Total U.S. subscribers reached 18.0 million, an increase of 320,000 from the prior quarter. This growth was primarily driven by the successful late-quarter premiere of "Power Book III: Raising Kanan" Season 4. Including Canada, total North American subscribers were 19.6 million, reflecting a sequential decline of 330,000. This decline was largely due to a carriage dispute in Canada that resulted in the removal of the STARZ-branded linear channel from a distributor's programming packages. Due to the extremely low ARPU associated with the linear Canadian subscribers, this did not have a material impact on either revenue or Adjusted OIBDA.
Given that the Company successfully completed its separation from Lionsgate on May 6, 2025—subsequent to the close of the fiscal year—STARZ will not report earnings per share (EPS) for the fourth quarter. The Company will initiate EPS reporting with the quarter ending June 30, 2025. In addition, the Company has adopted a change in its fiscal year end from March 31 to December 31.
STARZ senior management will hold its analyst and investor conference call to discuss results for the fourth quarter ended March 31, 2025, today, Thursday, May 29 at 5:00 p.m. ET / 2:00 p.m. PT. Interested parties may listen to the live webcast by visiting the events page on the STARZ Investor Relations website. A full replay will become available this evening by clicking on the same link.
1The forecasted operating income (loss) is not reasonably estimable due to the nature of certain individual items: restructuring and other, goodwill impairment and intangible asset impairment, and adjusted share-based compensation expense. The variability of these items could have a significant impact on our future GAAP financial results.
About Starz
STARZ is the leading premium entertainment destination for women and underrepresented audiences, and home to some of the most popular franchises and series on television. STARZ offers a robust programming mix for discerning adult audiences, including boundary-breaking originals and an expansive lineup of blockbuster movies, and is embodied by its brand positioning "We're All Adults Here." Complementary to any platform or service, STARZ is available across a wide range of digital OTT platforms and multichannel video distributors and is a bundling partner of choice. STARZ is powered by an industry-leading advanced technology, data analytics and digital infrastructure and the highly rated and first-of-its-kind STARZ app.
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