27 MAY 2022

Starz added 4.8 million new subscribers in Lionsgate’s fiscal fourth quarter

In its earnings report for the fiscal fourth quarter, which ended on March 31, Lionsgate disclosed that 4.8 million new subscribers were added by Starz in the period.

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In its earnings report for the fiscal fourth quarter, which ended on March 31, Lionsgate disclosed that 4.8 million new subscribers were added by Starz in the period, beating projections of 3 million new subscribers. During the earnings call, the company’s CEO, Jon Feltheimer, confirmed the group is finalizing its plans for either a minority stake sale or acquisition deal of Starz in the upcoming weeks.

The company reported that Total Media Networks global subscribers increased to 35.8 million including Starzplay Arabia, a non-consolidated equity method investee, driven by robust international and domestic streaming subscriber growth. Global streaming subscribers increased 47% year-over-year to 24.5 million. Meanwhile, Starzplay International subscribers grew 88% year-over-year to 12.8 million.

Financially speaking, Lionsgate reported fourth quarter revenue of US$929.9 million, operating loss of US$50.4 million and net loss attributable to Lionsgate shareholders of US$104.6 million or US$0.46 diluted net loss per share on 225.2 million diluted weighted average common shares outstanding. Adjusted net income attributable to Lionsgate shareholders in the quarter was US$13.0 million or adjusted diluted EPS of US$0.06 on 230.6 million diluted weighted average common shares outstanding, with adjusted OIBDA of US$82.6 million.

"Despite a very competitive and disruptive environment, I'm pleased to report a strong fourth quarter to close one of our best content building years as we continue to create significant long term value. Our content creation strengths were evident across our businesses as our Television Group achieved record new series launches and current series renewals, our Motion Picture Group continued to add to a strong pipeline of branded properties and our library turned in another standout performance. At Starz, our increased investment in content generated a robust slate that drove strong subscriber growth and a notable reduction in churn,"  Feltheimer said.

Despite a very competitive and disruptive environment, I'm pleased to report a strong fourth quarter to close one of our best content building years as we continue to create significant long term value” Jon Feltheimer CEO of Lionsgate