Premium channel Starz added about 500,000 new subscribers in the third quarter, driven by new original series like Outlander and soundly beating analysts’ expectations, but revenue and cash flow growth missed targets.
Star ended the quarter with 22.5 million subscribers, an improvement of 500,000 customers and well outpacing some analyst estimates of a gain of 200,000 subscribers. Revenue in the period was up 2% to $327.2 million and cash flow grew 3% to $109 million.
While Starz said it bought back about $93.6 million worth of its stock (about 3 million shares) in the quarter (ahead of most analysts expectations, revenue at its Starz Distribution unit – which develops and acquires content for distribution via DVD, digitally and via traditional television – w were down $44 million to $73.5 million in the period, mainly because there were no significant new releases from partner The Weinstein Company or of any Starz original series.
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