Why Starz Entertainment Stock Soared Today

The recently spun-off Lionsgate division reported mixed results on Friday morning, but investors were quick to focus on the positive surprises.

May 30, 2025 - 18:44
 0
Why Starz Entertainment Stock Soared Today

Starz Entertainment (NASDAQ: STRZ) stock glimmered on Friday. The premium media veteran posted its first earnings report as a stand-alone company, and investors were impressed. The stock price surged 24.2% higher by 10:30 a.m. ET, backing down to a 20% gain 90 minutes later.

The former Lionsgate Studios (NYSE: LION) division saw fourth-quarter 2025 sales fall 6.2% year over year to $330.6 million. Adjusted operating income before depreciation and amortization (OIBDA, one of the company's favorite profitability metrics) more than doubled from $45.5 million to $93.3 million. Starz collected $201.5 million in adjusted OIBDA for the full fiscal year, just ahead of management's guidance target of $200 million.

The Starz Network service had 19.6 million North American subscribers at the end of this reporting period, including 12.3 million subscribers to its digital streaming channel.

Continue reading