Starz delivered stronger-than-expected earnings in its second quarter even as revenue fell below Wall Street forecasts.
The core Starz Networks unit reported revenue of $328.2 million, up 2% from the year-ago frame. Analyst estimates had pegged revenue at around $334 million. But adjusted operating income grew 25% to $121.8 million, a bigger gain than the $116 million-$117 million the Street had been expecting.
Starz, which is in the midst of an ambitious rollout of original programming, said its flagship pay cabler added 100,000 subscribers since the first quarter.
Starz shares have been on a strong run this year, rising nearly 30% during the past 12 months.