Starz reported an 8% year-over-year decline in revenue, pulling in $319.7 million for the quarter ended June 30. The newly standalone company, now trading under the symbol STRZ on the Nasdaq, also posted a net loss of $42.5 million, or $2.54 per share. That follows its official separation from Lionsgate in May after a three-year process.
Total U.S. streaming subscribers fell to 12.2 million, down 120,000 from the previous quarter. Overall domestic subs, which include both streaming and linear customers, dropped to 17.6 million, a decline of 410,000. Across North America, total subscribers landed at 19.1 million, down 520,000 quarter over quarter. The company attributed these declines to continued linear erosion and weaker OTT additions, particularly in Canada, where linear carriage deals have expired.
Despite top-line softness and subscriber losses, Starz hit Wall Street expectations on adjusted OIBDA, delivering $33.4 million for the quarter. The company is also in a better financial position than many of its peers, reporting $573.5 million in net debt and a leverage ratio of 3.2 times trailing 12-month adjusted OIBDA.
CEO Jeffrey Hirsch remained optimistic, citing early success from Outlander: Blood of My Blood, which ranked as the third-biggest series premiere in the company’s history. While the main new title released in Q2 was Power Book III: Raising Kanan, the July debut of the Outlander prequel has already driven strong engagement and is a key reason Starz is forecasting both subscriber and revenue growth in the second half of the year. No specific guidance was provided.
In the previous quarter, Starz had reported revenue of $330.6 million and a 470,000 increase in streaming subscribers. The reversal in Q2 highlights the volatility of the transition to streaming, as well as the difficulty of offsetting linear declines with OTT growth.
The road ahead will test Starz’s ability to drive streaming momentum while managing costs and debt. With more than two-thirds of its U.S. base now on streaming, the company is positioning itself as a leaner, more agile media player, focusing on original programming and maximising free cash flow.
