Starz: 300,000 subs and European expansion
August 10, 2018
Lionsgate has reported revenue of $932.7 million (€816.11m) and net loss of $7.9 million, for the quarter ended June 2018.
Starz reported a sequential increase of 300,000 subscribers in the quarter with gains in both traditional MVPD (multichannel video programming distributor) and OTT subscribers. The company also announced that it has entered agreements to launch Starzplay branded channels in France, Italy and Spain in addition to the previous launches in the UK and Germany.
“We’re pleased to report a strong quarter with continued robust free cash flow and solid contributions from all of our businesses,” said Lionsgate Chief Executive Officer Jon Feltheimer. “Our global content machine is operating at full throttle, and we continue to invest in a programming and international rollout strategy at Starz that is working. Our initiatives in the quarter continued to strengthen Lionsgate’s stature as a unique and essential part of the media ecosystem.”
Media Networks segment revenues increased by 3 per cent to $354.9 million due to solid OTT revenue growth. Segment profits were essentially flat from the prior year quarter due to costs associated with Starz’s international rollout and a moderate increase in domestic marketing spend. Domestic subscribers increased 300,000 sequentially in the quarter, reaching 23.8 million, with growth in both traditional MVPD and OTT subscribers.