Starz shines in 2013
Editor | 23-02-2014
US premium subscription content provider Starz has revealed a strong 2013 with solid increases of 9% and 5% respectively in revenue and operating income.
For the year ended 31 December, revenue was $1.7775 billion, Adjusted OIBDA $476.9 million and operating income increased to $425.2 million. For the quarter, revenue slipped 2% to $414.7 million, adjusted OIBDA increased 16% to $117.2 million and operating income increased 21% to $103.4 million.
Looking a business lines, Starz Distributionís yearly revenue increased 40% to $449.5 million including Django Unchained and Silver Linings Playbook, various Starz original series titles including "The White Queen, Spartacus and Da Vinci's Demons and AMC's The Walking Dead. Adjusted OIBDA increased 588% to $24.0 million primarily due to the increase in revenue and a decrease in impairments of investment in films and television programs during 2013.
Starz Networks revenue for the year increased 2% to $1,297.7 million due to the one-time recognition during Q2 2013 of $18.6 million of previously deferred revenue and annual rate increases. Adjusted OIBDA increased 2% to $456.2 million as a result of the increase in revenue and lower programming costs.
Counting its Encore business into the total, Starz claimed 57.1 million subscribers at the end of 2013 and leadership in the US premium television category. Encore subscriptions were at at 34.9 million, up slightly since 31 December 2012. Since 30 September, Starz gained 200,000 subscriptions while those for Encore were essentially flat.
"This was another strong quarter for Starz and a strong end to 2013. During 2013, we delivered solid growth in revenue, Adjusted OIBDA, and subscriber performance," said Starz CEO Chris Albrecht commenting on the year. "Over the past year, we increased our investments in exclusive original programming at Starz and implemented new offerings to our Encore thematic channels for African-American, Latino, Baby Boomer, and Millennial audiences."
Looking forward the company noted that Encore Play/Movieplex Play and Xbox One full suite deployments were coming in 2014.