Lionsgate has seen Starz’s streaming subscriber base grow as the Hollywood studio released second-quarter financial results while exploring a sale or spin-off of the premium cable and streaming platform.
On Thursday, the Hollywood studio saw Starz’s global streaming subscribers grow to 26.3 million in the three months ending June 30, 2022, in an increasingly competitive global streaming landscape. That’s 1.8 million more subscribers than the 24.5 million at the end of the fourth quarter of fiscal 2022 and a 57% year-on-year increase.
Lionsgate executives are expected to provide an update on the studio’s options for Starz in an aftermarket analyst call, including a potential spin-off of its broadcast and pay-TV business and its studio operations. The goal appears to be to create two separate companies so that investors can value Starz and the studio’s assets separately.
Starz is a pay-TV channel similar to HBO and Showtime and also offers a streaming service aimed at national and international audiences. Your schedule includes Hello franchise, blind spot s Uptown. Lionsgate acquired Starz in 2016 for $4.4 billion. A deal, if it happens, is expected sometime this summer.
“We are pleased to report strong global growth in streaming subscribers on Starz, another outstanding performance from our television group and key financial metrics in line with expectations,” Lionsgate CEO John Feltheimer said in a statement.
“While we find ourselves in an uncertain economic environment, we continue to successfully execute our core mission: to fill our Starz projects and library, television and film with premium content that creates long-term value for our customers, partners and shareholders.” Feltheimer. was added.
Lionsgate’s total revenue for the quarter was $893.9 million, down from $901.2 million in the second quarter of the previous year. The studio extended its quarterly net loss attributable to shareholders to $119 million, compared with a loss of $45.4 million a year earlier.
Revenue from studio media networks, primarily Starz, totaled $381.2 million, down from $382.3 million a year earlier. Starz Networks reported quarterly revenue of $349.6 million, down from $358.2 million a year earlier.
This was offset by the increase in Starzplay International’s revenue to $31.6 million in the last quarter, compared to $24.1 million in the second quarter of fiscal 2022.
Starz’s total global subscribers increased to 37.3 million, including Starzplay Arabia. Movie revenue was $278.8 million, down 4% from fiscal year 2022’s $291.2 million, as the studio recorded fewer theatrical releases in the quarter.
And television production revenue rose sharply to $423.3 million from $386.1 million a year earlier, thanks to increased content delivery.
Source: Hollywood Reporter
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