Starz Entertainment Reports Q2 2025 Results Amid Subscriber Decline and Future Outlook

Starz Entertainment Corp. Reports Q2 2025 Financial Results

Starz Entertainment Corp. has released its earnings report for the quarter that ended on June 30, 2025, showcasing a mix of revenue generation and challenges in subscriber numbers. Despite this, the company maintains a positive outlook for the future.

Financial Overview

In the quarter ending June 30, 2025, Starz reported a consolidated revenue of $319.7 million. However, the company incurred a net loss of $42.5 million, equivalent to a loss of $2.54 per share. The operating loss for this period stood at $26.9 million, while the Adjusted OIBDA was reported at $33.4 million. The company ended the quarter with considerable debts, including $300 million on its Term Loan A credit facility and $325.1 million in senior unsecured notes, amounting to a total net debt of $573.5 million.

Subscriber Trends

Looking into subscriber stats, Starz noted a decrease in its U.S. Over-The-Top (OTT) subscribers, falling to 12.2 million, which reflects a sequential decline of 120,000 from the previous count. Overall, the total U.S. subscribers decreased by 410,000, resulting in 17.6 million total subscribers, primarily influenced by persistent pressure on linear subscriptions and a slowdown in OTT subscriber growth. Moreover, including Canadian users, total North American subscribers reached 19.1 million, down 520,000.

Jeffrey Hirsch, the President and CEO of Starz, emphasized the company’s commitment to a robust content strategy, noting that the recent premiere of 'Outlander Blood of my Blood' achieved the third-highest subscriber addition in the franchise's history. He expressed optimism, asserting that Starz is on a firm path to achieving its goals for revenue growth, enhanced profit margins, and improved conversion of Adjusted OIBDA to free cash flow.

Looking Ahead

Starz management is actively working towards enhancing its performance through strategic initiatives. The company reiterates its expectations for sequential revenue growth and an increase in OTT subscribers in the upcoming third and fourth quarters of 2025. Hirsch indicated that the combination of their compelling content lineup and an optimized cost structure will support the company’s objectives.

Investors and analysts may follow the ongoing developments and detailed results in the upcoming conference call scheduled for August 14, 2025, where management will further elaborate on the financial outcomes and future expectations for the company.

Conclusion

With a strong focus on content quality and strategic objectives, Starz prepares to navigate challenges in subscriber retention and operational financial performance. As the entertainment landscape continues to evolve, Starz remains dedicated to its mission of providing premium content tailored to diverse audiences. The company’s path forward hinges not only on overcoming current setbacks but also on capitalizing on forthcoming opportunities in the rapidly changing digital media environment.