Starz Entertainment (NASDAQ:STRZ) reported second-quarter results that management said reflected improving streaming revenue, audience engagement and free-cash-flow generation, prompting the company to raise its full-year adjusted OIBDA growth outlook and increase its unlevered…
ee cash flow guidance. Total revenue for the quarter was $308 million, including $221 million of over-the-top, or OTT, revenue and $87 million in linear and other revenue
CFO Scott Macdonald said OTT revenue grew year over year for the first time since the fourth quarter of 2024. Excluding $3 million of Canadian OTT revenue included in the prior-year period, OTT revenue would have risen 1.4% on a pro forma basis. Macdonald said the company’s April price increase contributed to improved average revenue per user, with further ARPU gains expected in the second half as promotional subscriber cohorts convert to retail pricing.
Management also said total subscribers increased during the quarter despite the price increase, though Starz does not regularly disclose subscriber totals. Content Drives Engagement and Streaming Momentum President and CEO Jeffrey Hirsch attributed the quarter’s performance to the finale of Outlander, the premiere of Raising Kanan Season 5 and The Housemaid. He said the company’s programming lineup produced its second-highest quarterly audience engagement level of all time and marked a fourth consecutive quarter of engagement growth since Starz separated from Lionsgate.