Starz Q3 Revenue Grows, Losses Narrow As It Starts To Unlock “Financial Upside Of Increased Ownership” In Slate
Starz reported higher overall and streaming revenue and a much smaller year-on-year loss for the quarter ending in September. The results came as the company shifts towards owning more of its programmes, which it says could improve the financial returns from its slate.
Revenue reached $322.4 million, up from $320.9 million, with streaming revenue at $287 million and linear revenue down to $95.8 million. The figures exceeded analysts’ forecasts; Starz ended the quarter with $86.8 million in cash and $687.5 million in debt. Its programming included the finale of *Power Book III: Raising Kanan*, the launch of owned series *Fightland* and *Outlander: Blood of My Blood*; shares were flat after results, but had risen 85% so far this year.
In short
- Starz revenue rose to $322.4 million in the third quarter.
- Streaming revenue reached $287 million.
- The company is increasing ownership of its programmes.
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The case for
Starz’s higher revenue and sharply reduced loss suggest that its shift towards owning more programmes may improve returns over time, while the quarter’s results beat forecasts. Supporters could argue that greater ownership gives the company more control over valuable content and a better chance to capture its long-term value.
The case against
The results still show a company with substantial debt and a large cash balance relative to its quarterly revenue, while linear revenue declined and overall revenue rose only slightly. Sceptics could argue that the financial upside from owning more programmes is uncertain and may take time to appear, so one improved quarter does not establish that the strategy is working.
Explained simply
Starz is a US entertainment company that makes and distributes television programmes through streaming and traditional television packages. Its revenue comes from both streaming subscriptions and linear channels, whose audiences have generally been shifting towards online services.
A key issue for Starz is how much of its programming it owns. Owning more shows can give the company greater control over how they are licensed and reused, potentially bringing in more income over time, but it also means taking on the costs and risks of making them.
The results matter because they offer a snapshot of Starz’s finances as it changes that mix. Investors will be watching whether streaming growth and greater ownership can support the business while it manages its debt.
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