Starz Entertainment Earnings Call Transcripts
Fiscal Year 2027
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Met or exceeded all key financial targets in Q1 2026, with strong OTT revenue growth, improved margins, and accelerated delevering. Exited the Universal Pay-2 deal, moving the 20% margin target up by a year, and reaffirmed full-year guidance.
Fiscal Year 2026
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Post-separation, the business improved free cash flow and set a path to 20% margins by 2027, driven by content ownership, cost discipline, and data-driven strategies. Engagement is rising, the content pipeline is robust, and M&A is considered for future growth, with a focus on AVOD/SVOD diversification.
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Following its separation from Lionsgate, the company has strengthened its financial position, prioritized long-term revenue growth, and improved marketing efficiency by focusing on high-value subscribers. A robust content slate and strategic use of AI support engagement and cost control, while new distribution partnerships and industry consolidation present further growth opportunities.
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Starz has transitioned to a digital-first, complementary streaming model focused on women and underrepresented audiences, achieving margin growth and reducing content spend. The company is leveraging AI for efficiency, exploring M&A for scale, and maintaining a robust content pipeline while prioritizing free cash flow and deleveraging.
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Achieved record OTT subscriber growth and exceeded 2025 financial targets, with strong Q4 results and a robust original content slate driving revenue and margin improvements. 2026 guidance projects continued cash flow growth, margin expansion, and further de-levering.
Fiscal Year 2025
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Strong quarter with sequential revenue and subscriber growth, affirming $200M adjusted OIBDA guidance. Strategic shift to content ownership and licensing, reduced content spend, and improved leverage position set up for margin expansion and free cash flow growth.
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Revenue and subscribers declined sequentially due to BMF underperformance, but strong results from Blood of My Blood and a robust upcoming slate support expectations for renewed growth. Cost discipline and increased content ownership underpin a 20% margin target by 2028.
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Separation from Lionsgate completed, with $1.4B revenue and $200M adjusted EBITDA for the year. Subscriber growth was driven by original content, while revenue declined year-over-year due to a strike-impacted slate. Focus remains on margin expansion, deleveraging, and building owned IP.