Starz Entertainment reports wider Q3 loss than expeced despite subscriber growth
SANTA MONICA - Starz Entertainment Corp. (NASDAQ:STRZ) reported a third quarter loss that significantly exceeded analyst expectations, despite showing positive subscriber growth in its streaming business.
The entertainment company posted a third quarter loss of -$3.15 per share, substantially wider than the analyst estimate of -$0.46 per share. Revenue for the quarter came in at $320.9 million. The company reported an operating loss of -$34.8 million and adjusted OIBDA (Operating Income Before Depreciation and Amortization) of $21.8 million. The stock remained unchanged following the earnings announcement.
Starz reported positive momentum in its streaming business, adding 110,000 U.S. OTT subscribers sequentially to reach 12.3 million. Total U.S. OTT subscribers grew by 670,000 YoY, with 520,000 added year-to-date. However, total U.S. subscribers decreased by 130,000 from the prior quarter to 17.5 million, which the company attributed to "continued pressure on linear subscribers."
"STARZ reported a great quarter both operationally and financially, and we expect to continue our momentum to close out 2025," said STARZ President & CEO Jeffrey Hirsch. "With an incredibly strong slate of originals airing on STARZ over the next year, we have a great opportunity to further scale our core audience of women and underrepresented audiences."
The company ended the quarter with $37 million in cash and total net debt of $588.1 million. On a trailing twelve-month basis, Starz’s total Adjusted OIBDA Leverage Ratio was 3.4x.
Canadian subscribers increased by 250,000 in the quarter following the resolution of a carriage dispute that had previously resulted in the removal of linear subscribers from the company’s count. Including Canada, total North American subscribers reached 19.2 million, reflecting a sequential increase of 120,000.
Management reiterated all previously provided outlook for 2025, as the company continues to execute on its post-separation plan of generating new revenue through content licensing and increasing ownership of series on the network.
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