Starz, now operating as an independent company after its separation from Lionsgate, released its first financial results as a standalone entity for the quarter ending March 31, 2025. The report highlights a period of transition for the premium cable and streaming platform, showing notable subscriber growth in the U.S. alongside significant restructuring charges.
According to the financial update, Starz recorded a consolidated revenue of $330.6 million for the quarter, down from $352.4 million during the same period in 2024. The company also reported an operating loss of $136.3 million, which widened from a loss of $30.8 million in the prior year. However, adjusted OIBDA (Operating Income Before Depreciation and Amortization) more than doubled to $93.3 million from $45.5 million last year.
A key highlight for analysts was the growth in U.S. streaming subscribers. Starz added 530,000 OTT (over-the-top) customers in the U.S. during the quarter, ending with 12.3 million domestic streaming users. Overall, U.S. subscribers reached 18 million, up by 320,000 from the previous quarter. This increase was primarily driven by the late-quarter premiere of Power Book III: Raising Kanan Season 4.
David Joyce, analyst at Seaport Research Partners, said, “Importantly, the results showed stronger than expected momentum in U.S. OTT subscriber net adds at +530,000, driven by the late-in-the-quarter original Power: Raising Kanan season 4 premiere.”
Despite strong domestic growth, total North American subscribers dropped by 330,000 to 19.6 million. This decline was attributed to a carriage dispute in Canada that led to Starz being removed from a TV bundle. Starz also reported a restructuring charge of $177.4 million related to a strategic review of its content portfolio. In the same quarter last year, the company recorded a one-time content impairment charge of $29.4 million to reorganize its international business.
Jeffrey Hirsch, President and CEO of Starz, said, “As a separate company, we’ll start to unwind that pressure of cost on the content side and really start to stand up our IP factory again and start to build our own library and take real control of the cost side of the business.”
Analysts see potential benefits from Starz owning more of its intellectual property instead of relying on Lionsgate. TD Cowen analyst Doug Creutz commented in his May 30 note, “Starz now should be able to participate in upside from its projects, while still outsourcing funding and film production to external studios, including (Lionsgate).”
Another key focus area for Starz is reducing its debt. Hirsch mentioned during the call, “Right now, we’re laser focused on de-levering down to 2.5X, and that’s our focus,” referring to the company’s goal of lowering its debt-to-EBITDA ratio.
As Starz continues its journey as an independent business, investors are watching for signs of consistent performance and subscriber stability. According to Creutz, “We believe Starz’s improved content slate in 2025 (after a year when the pipeline was affected by the 2023 Hollywood strikes), featuring new seasons of flagship franchises and promising new originals, could help stabilize the subscriber base, but this remains a ‘show me’ story until proof arrives in the form of steady quarterly performance.”
Shares of Starz rose sharply following the earnings release, increasing by $3.12, or 19%, to $19.63 during Friday morning trading.