Starz Q2 Profit Falls Nearly 10%

Starz TV

Starz said second-quarter net income declined 9.5% even as revenue rose.

The Englewood, Colo., company, which operates the premium pay-cable Starz and Encore services said second-quarter profit came to $63.4 million, or 59 cents per share, compared with $70.1 million, or 62 cents per share, in the year-earlier period.

Overall revenue rose 2% to $417.7 million, the company said, citing an increase in monies collected from its networks’ various distributors. Meanwhile, customer subscriptions increased by increased  23.5 million, a rise of 1.5 million since June 30, 2014, though down slightly from the first quarter of this year.

Wall Street watches the company these days for its success in launching original series, which it can then distribute and sell into other viewing opportunities after the programs run on its own networks. Starz cited the performance of series like “Power” and “Outlander, and said its pipeline for 2015 was “fortified.” In a prepared statement, Starz CEO Chris Albrecht said the company was “on track this year to achieve our goal of 75-80 episodes of new Starz Original series.”

The company said revenue at its TV networks rose 2% to $333.3. Revenue from distribution increased 4% to $78.4 million as a result of the distribution of films for The Weinstein Company.

 

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  1. Cath says:

    I love these stories. Looking at it another way. Starz is a company that has profits. Many factors go into why a company’s “profits” are down. Negative headline for a positive. How does that affect stock prices? Bet many companies would be happy to have any profits at all.

    • Brian Steinberg says:

      That’s likely true, Cath, but investors also want to know whether a company’s profit is increasing or decreasing year over year. Profit can often be a better barometer of financial health – it is the bottom line, after all – than many of the other measures bandied about in a company’s quarterly results release

      • Marie says:

        Profit really isn’t that good of a barometer. There’s lots of items that can effect profit that doesn’t cause cash to come out of the company coffers. Depreciation, amortization and the LIFO adjustment just to name a few. The cash flow statement is a much better barometer IMO. I doubt that Starz has much inventory to cause a huge LIFO adjustment but there could be other factors that caused the profit to go down that don’t mean the company is in trouble.

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