Starz, the premium cable network and streaming provider set for separation from Lionsgate’s balance sheet early next year, added 200,000 domestic OTT subscribers from July through September, according to the parent company's fiscal Q2 report.
Starz finished September with just over 12 million direct-to-consumer streaming subscribers, after losing 430,000 OTT customers in its fiscal first quarter. Starz has around 19.44 million customers across linear premium networks and SVOD platforms, which is about 570,000 less than it had at the end of September 2022.
“We [are] focused on preparing Starz to thrive as a profitable and successful stand-alone company,” Lionsgate CEO Jon Feltheimer told investors. “On the strategic front, we're actively engaged in steps towards highlighting the value of our two separate businesses and expect to update you by the next call.”
Lionsgate beat equity analysts’ expectations in fiscal Q2, with a jump in revenue to from $858 million to more than $1 billion, driven by a nearly 80% revenue increase in the motion picture department.
The Canadian “mini-major” studio also narrowed its net loss for the quarter to $887.9 million.
Lionsgate’s motion picture business ended the quarter up 77% year-over-year to $396 million, with segment profit up 22% to $68 million. Lionsgate chief financial officer Jimmy Barge credited John Wick 4, as well as an increase in wide and multi-platform releases for the swell.
Lionsgate’s TV sector, however, saw revenue decline 9% to $393.9 million, which Barge attributed to the Hollywood guild strike interruption of episodic TV delivery.
Lionsgate also recently acquired Entertainment One from Hasbro for $500 million, a transaction set to close later this year.
