Starz Entertainment Q2 revenue misses estimates

Overview

• Starz Q2 revenue of $319.7 mln missed analyst expectations

• Company reported a net loss of $42.5 mln for the quarter

• Management reiterates outlook for sequential revenue and OTT subscriber growth

Outlook

• Starz reiterates guidance for sequential revenue and OTT subscriber growth in Q3 and Q4 2025

• Company aims to return to revenue growth and improve margins

• Starz expects improved cost structure to aid financial objectives

Result Drivers

• SUBSCRIBER DECLINE - Sequential decline in OTT and linear subscribers attributed to continued pressure on linear subscriber base and lower OTT additions

• CONTENT STRATEGY - Subscriber additions from Outlander: Blood of my Blood premiere were third highest for a series premiere in company's history

• COST STRUCTURE - Management highlights improved cost structure as key to achieving revenue growth and margin improvement

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy."

• Wall Street's median 12-month price target for Starz Entertainment Corp is $20.00, about 23.5% above its August 13 closing price of $15.31

Press Release: ID:nPn72fCYNa