- **Content-Driven Growth**: Blood of my Blood added 3rd-highest subscribers in Starz history, with 40% higher viewership than Outlander finale.
- **Margin Ambition**: 20% OIBDA margin by 2028 via 30% lower per-episode costs for new shows like Fightland.
- **Financial Health**: $33.4M adjusted OIBDA, 3.2x leverage, and $200M annual free cash flow at 4x OIBDA valuation.
- **Strategic Focus**: No rate hikes in 2025-2026; prioritizing subscriber growth through new distribution platforms and content slate optimization.

**【CEO Opening Remarks】**
- Starz is positioned as a digital-first, profitable network catering to women and underrepresented audiences, with a focus on content that avoids linear advertising dependency.
- 2025 adjusted OIBDA target of $200 million, with 70% conversion to free cash flow in 2026, aiming for a 20% margin by 2028.
- Valuation at 4x adjusted OIBDA is undervalued compared to peers, despite generating $200 million in annual free cash flow.

**【CFO Financial Update】**
- Q2 2025: 12.18M U.S. OTT subscribers (-120,000 QoQ), total revenue $319.7M (-2% QoQ, -7.4% YoY), adjusted OIBDA $33.4M.
- Sequential revenue decline due to BMF Season 4 underperformance, but Blood of my Blood driving subscriber growth.
- Net debt $573.5M, leverage 3.2x (12-month trailing), targeting 3.1x by year-end.

**【Q&A Highlights】**
- **M&A Strategy**: Focus on deleveraging to 20% margin by 2028 before pursuing acquisitions; current focus on content slate optimization.
- **Margin Targets**: 20% OIBDA margin by 2028 via reduced content costs (e.g., Fightland at 30% lower per-episode cost) and subscriber growth.
- **Content Performance**: Blood of my Blood added 3rd-highest subscribers in Starz history, Spartacus reboot expected to attract 12-year fanbase.
- **ARPU Trends**: Stable ARPU due to multi-month subscription offers, no rate increases planned for 2025-2026.
- **Franchise Success**: Spin-offs (e.g., Outlander prequels) retain 85%+ of original audience, vs. industry average of 50%.
- **Lionsgate Relationship**: Strong collaboration on Spartacus, Origins, and Ballerina, with cost-effective 18-episode season structure.

Starz Entertainment (STRZ)-14 Aug 25-2025 Q2 Earnings call transcript

- **Studio Recovery**: Mid-budget films drive 22% YoY library growth to $954M, with *Ballerina* and *Michael* set to launch.
- **Starz Momentum**: Sequential OTT growth of 170K, new Amazon bundle, and Q4 slate poised for subscriber gains.
- **Q4 Surge**: Studio OIBDA expected +45% YoY, fueled by film carryover and TV deliveries.
- **Separation Readiness**: Studio debt to $1.6B (5.5x leverage) post-separation, Starz as digital-first platform with 3x leverage.
- **Cost Efficiency**: Tax incentives, backend deals, and bundled distribution reduce costs across businesses.


**【CEO Opening Remarks】**
- **Motion Picture Recovery**: Mid-budget films like *Den of Thieves 2* and *Flight Risk* drove strong profitability, with trailing 12-month library revenue hitting $954 million (22% YoY growth). Upcoming films include *Ballerina* (John Wick spinoff) and *Michael*.
- **Television Growth**: 16 scripted series in production, including *The Studio* (Apple TV+), *Ghosts* (CBS), and *The Rookie* (ABC). New models with Blumhouse and MGM+ expand into fresh markets.
- **Starz OTT Momentum**: Sequential subscriber growth of 170,000 to 12.6 million, driven by *Outlander* and Lionsgate films. New bundles with Amazon Prime, Vizio, and YouTube TV enhance distribution.
- **Ancillary Revenue**: *John Wick Experience* launching in Vegas, stage plays (*Hunger Games*, *Dirty Dancing*), and video games to diversify income streams.

**【CFO Financial Update】**
- **Q3 2025 Results**: Revenue $971 million, Adjusted OIBDA $144 million, Free Cash Flow $13 million. Studio OIBDA up 45% YoY to $112 million.
- **2025 Outlook**: Studio OIBDA $300-320 million, Starz NA OIBDA $200 million. Q4 Studio segment profit expected to jump 45% YoY, driven by film carryover and TV deliveries.
- **Balance Sheet**: Studio net debt $1.8 billion (6.5x leverage), Starz $568 million (3.3x). Post-separation, Studio will have $800M ABL and Starz $300M Term Loan.

**【Q&A Key Takeaways】**
- **Starz Separation**: Targeting mid-April 2025 close, with Starz as a digital-first platform. Amazon Prime deal secures 4 films from 2025 slate and full 2026-2028 slates, boosting pay TV window revenue.
- **Cost Control**: Studio leveraging tax incentives (e.g., New Jersey), backend participation deals, and efficient production models. Starz reducing marketing spend via bundled partnerships.
- **Borderlands Post-Mortem**: Failed to adapt to shifting IP landscape; future films will prioritize risk-adjusted budgets and timely execution.
- **Subscriber Trends**: Starz OTT growth to continue with Q4 slate (*Canaan*), while linear subs decline driven by industry-wide cord-cutting.


Lions Gate Entertainment Corp. (LGF.A) Q3 2025 Earnings Call Transcript

- **Content Success**: Blood of My Blood drives 40% higher viewership than Outlander finale, with subscribers added at higher price points.
- **Margin Target**: 20% adjusted OIBDA margin by 2028 via 30% cost reduction in owned/produced content (e.g., Fightland) and modest subscriber growth.
- **Financial Health**: $33.4M Q2 OIBDA, 3.2x leverage, and $573.5M net debt; 2026+ free cash flow conversion to 70% of OIBDA.
- **Strategic Focus**: Digital-first model, under $4x OIBDA valuation, and 2025-2027 deleveraging plan differentiate STARZ from peers.

**【CEO Opening Remarks】**
- STARZ is positioned as a digital-first, profitable network targeting women and underrepresented audiences, with a focus on content that punches above its weight class.
- Q2 2025 adjusted OIBDA of $33.4M (down 63% sequentially) due to underperformance of BMF Season 4, but confident in recovery driven by Blood of My Blood and upcoming slate.
- Blood of My Blood exceeded expectations, generating 3rd-highest subscriber additions in STARZ history and 40% higher viewership than Outlander Season 7 finale.
- 2028 target: 20% adjusted OIBDA margin through cost improvements (e.g., Fightland at 30% lower per-episode cost than recent premieres) and modest top-line growth.
- 2025 outlook: ~$200M adjusted OIBDA, 70% conversion to free cash flow in 2026, and leverage reduction to 3.1x by year-end.

**【CFO Financial Commentary】**
- Q2 2025 metrics:
  - OTT subscribers: 12.18M (down 120K sequentially)
  - Total revenue: $319.7M (down 2% Q/Q, 7.4% Y/Y)
  - Adjusted OIBDA: $33.4M (down 63% Q/Q)
  - Net debt: $573.5M (down $42.1M Q/Q)
  - Leverage: 3.2x (12-month trailing basis)
- 2025 transition year: content payment timing causing cash flow volatility, but 2026+ normalization expected.
- Federal tax benefits from One Big Beautiful Bill Act eliminate near-term cash tax payments.

**【Q&A Highlights】**
- **M&A Strategy**: Focus on delevering to 20% margin by 2028 before pursuing scale; STARZ's tech stack and demo focus make it a valuable platform.
- **20% Margin Risk Factors**: Success of Fightland (first owned/produced show with 30% lower cost structure) and content slate execution critical.
- **ARPU Dynamics**: Stable at ~$11.50/quarter, with multi-month subscription offers reducing churn.
- **Spartacus Return**: 12-year hiatus show benefits from fan demand and diverse casting (African American female gladiator), positioning for long-term success.
- **Lionsgate Relationship**: Strong collaboration on Spartacus, Origins, and Ballerina; 18-episode Origins order reflects cost-effective partnership.


Starz Entertainment Corp (STRZ) Q2 2025 Earnings Call Transcript

Lions Gate Entertainment Corp. (LGF.A) Q1 2025 Earnings Call Transcript

Lions Gate Entertainment Corp. (LGF.A) Q4 2024 Earnings Call Transcript

Lions Gate Entertainment Corporation (LGF.A) Q3 2024 Earnings Call Transcript

Lions Gate Entertainment (LGF.A)-9 Aug 23-2024 Q1 Earnings call transcript

Lions Gate Entertainment (LGF.A)-25 May 23-2023 Q4 Earnings call transcript

Lions Gate Entertainment (LGF.A)-9 Feb 23-2023 Q3 Earnings call transcript

Lions Gate Entertainment (LGF.A)-4 Nov 22-2023 Q2 Earnings call transcript

Lions Gate Entertainment (LGF.A)-6 Aug 22-2023 Q1 Earnings call transcript

Lions Gate Entertainment (LGF.A)-27 May 22-2022 Q4 Earnings call transcript

Lions Gate Entertainment (LGF.A)-4 Feb 22-2022 Q3 Earnings call transcript

Lions Gate Entertainment (LGF.A)-6 Nov 21-2022 Q2 Earnings call transcript

Lions Gate Entertainment (LGF.A)-5 Aug 21-2022 Q1 Earnings call transcript

Lions Gate Entertainment (LGF.A)-28 May 21-2021 Q4 Earnings call transcript

Lions Gate Entertainment (LGF.A)-5 Feb 21-2021 Q3 Earnings call transcript

Lions Gate Entertainment (LGF.A)-9 Aug 20-2021 Q1 Earnings call transcript

Lions Gate Entertainment (LGF.A)-22 May 20-2020 Q4 Earnings call transcript

Lions Gate Entertainment (LGF.A)-7 Feb 20-2020 Q3 Earnings call transcript

Lions Gate Entertainment (LGF.A)-8 Nov 19-2020 Q2 Earnings call transcript

Lions Gate Entertainment (LGF.A)-24 May 19-2019 Q4 Earnings call transcript

Lions Gate Entertainment (LGF.A)-8 Feb 19-2019 Q3 Earnings call transcript

Lions Gate Entertainment (LGF.A)-9 Nov 18-2019 Q2 Earnings call transcript

Lions Gate Entertainment (LGF.A)-11 Aug 18-2019 Q1 Earnings call transcript

Lions Gate Entertainment (LGF.A)-9 Feb 18-2018 Q3 Earnings call transcript

LGF.B(Delisted)

LGF.B fundamentals

Earnings Call

You can ask Aime