Global content creator Lionsgate exceeded Wall Street estimates on Thursday (Aug. 8), reporting US$963.6 million in revenue for the first quarter.
The company’s media networks segment revenues rose 4.9% to $372.4 million – up from $354.9 million in 2018 – driven by subscriber growth to STARZPLAY, Liongate’s OTT service.
Subscribers to the SVOD jumped 400,000 to 4.4 million, its third best subscriber growth quarter ever.
Segment profits for the domestic Starz Networks business – which Lionsgate acquired for $4.4 billion in 2016 – increased by 3.4% to $103.7 million, which was offset by continued investment in STARZPLAY.
As a result of that investment, overall segment profit for Starz Networks declined from the prior year quarter to $60.6 million.
Starz ended the quarter with 26.5 million global subscribers, up 2.6 million from the prior year quarter, and 24.4 million total domestic subscribers.
“We’re pleased to report strong financial results in the quarter and a great start to the fiscal year,” said Lionsgate CEO Jon Feltheimer in a statement. “Our television group had its best development season ever… and Starz achieved strong growth in its domestic OTT business while continuing to expand its premium SVOD platform around the world.”
Though revenues jumped from $932.7 million in 2018, the company reported a $54 million loss, or $0.25 per share. Adjusted operated income landed at $67.3 million.