Starz Records Mixed Results, Revs Drop 4%

Just weeks after agreeing to be bought for $4.4 billion by Lions Gate Entertainment, premium cable TV network group Starz reported mixed financial results for its second-quarter period.

Revenue dropped 4% to $402.6 million, with net income sinking 14% to 54.4 million. Starz witnessed more than a 50% decline in home video sales to $16 million from $37.4 million.

Subscriptions for Starz Encore dropped to 31.8 million from 33.3 million in the second quarter of 2015. The Starz channel had a better time of it -- rising to 24.2 million from 23.5 million.

Overall, subscription dropped by 800,000 to 56 million.

Analysts believe the Lions Gate-Starz deal will help even out the ups and down of theatrical revenue that can plague movie studios. Additionally, it’s expected the deal can help both companies compete with Netflix, HBO and Amazon when it come to digital video streaming.

Last April, Starz launched its own over-the-top digital video service/app. Major original Starz TV series include “Outlander,” “Power” and “Black Sails.”

On Thursday, Starz’s stock closed 1.3% to $29.96; Lions Gate Entertainment was down 2% to $19.75.



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