Mixed Q4 for Starz

Revenue declines 2% but subs up in the period

By Mike Farrell, Multichannel News -- Broadcasting & Cable, 2/27/2013 5:58:57 PM

The decision not to renew its Netflix distribution deal dinged revenue growth at Starz in the fourth quarter, but subscribers to its flagship premium channel rose by 400,000 to 21.2 million.

Starz reported revenue of $422.2 million in the quarter, down 2% from the prior year due mainly to fewer theatrical releases from The Weinstein Co. and its decision not to renew its Netflix deal, which expired last February. Adjusted operating income before depreciation and amortization increased 8% in the period to $101 million, fueled mainly by fewer first run films, better utilization of its second run movies from Walt Disney Co. and Sony Pictures, and decreased marketing costs for original shows.

On a conference call with analysts, CEO Chris Albrecht said Starz plans to fuel its future growth through more original programming, airing about 36 hours of original shows in 2013, rising to 50 hours in the next couple of years.

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