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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Strong Q2 results featured record engagement, OTT revenue growth, and successful new content launches. Raised guidance for adjusted OIBDA and free cash flow, with continued deleveraging and expanded distribution partnerships supporting a positive outlook.
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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.