[May 14, 2013] Starz Reports First Quarter 2013 Financial Results Tweet May 14, 2013 (Close-Up Media via COMTEX) -- Starz reported first quarter 2013 results. In a May 9 release, the company noted that highlights include: -Increased STARZ subscriptions by 7 percent and ENCORE subscriptions by 4 percent to 21.6 million and 35.1 million respectively -56.7 million combined subscriptions; leads U.S. premium television category -Premiered "Da Vinci's Demons" to record original programming opening weekend viewership; renewed for second season -Concluded "Spartacus" series to season high viewership; global hit series averaged approximately 6 million viewers per episode in the United States -Greenlit New STARZ Original series "Fortitude" in co-production partnership with BSkyB's Sky Atlantic for air in 2014 -Launched Android and new device support with new app store access for STARZ/ENCORE/MOVIEPLEX PLAY services with Barnes & Noble and Google -Secured home video distribution agreement at Anchor Bay with AMC Networks for original programming from AMC, IFC and Sundance Channel Chris Albrecht, Starz Chief Executive Officer said, "Starz delivered solid operational performance in the first quarter with record subscriber totals at STARZ and ENCORE. We continue to execute our strategy to grow the STARZ Original series programming portfolio with quality dramatic series. Coupled with the conclusion of "Spartacus" which aired on the same night, Starz had the biggest weekend viewing for an original series in the company's history and we are happy to have renewed 'Da Vinci's Demons' for a second season. In addition, anticipation is building for 'Magic City,' 'The White Queen,' 'Black Sails,' and the recently greenlit 'Fortitude' which we will co-produce with BSkyB's Sky Atlantic. We are confident that over time our approach to original programming will deliver strong shareholder value." "Our TV Everywhere efforts continued to accelerate, with this week's launch of new device support for PLAY on Android and other new platforms. This is an important part of cementing our relationship with viewers, adding value for our distribution partners and growing our business in the near and long-term." Revenue decreased 1 percent to $399 million for the first quarter primarily attributable to Starz Networks as a result of the non-renewal of the Netflix agreement and the renewal of affiliation agreements with two distributors in the fourth quarter of 2012 on less favorable financial terms than the prior affiliation agreements (such agreements provide for annual contractual increases). Starz Animation also contributed to the decrease in revenue due to fewer projects in production at the company's Film Roman studio. These decreases in revenue were partially offset by an increase in revenue for Starz Distribution driven by the strong performance of the company's original series "Spartacus" and various titles from The Weinstein Company LLC ("TWC") and a decrease in inter-segment eliminations. Adjusted OIBDA decreased 8 percent to $117 million for the first quarter. In addition to the decrease in revenue mentioned above, Adjusted OIBDA was impacted by higher sales of lower margin titles by Starz Distribution and a decrease in inter-segment eliminations as a result of fewer exhibitions of Overture Films' titles on Starz Networks. Operating income decreased 13 percent to $105 million for the first quarter. The decrease was due to the decrease in Adjusted OIBDA discussed above combined with an increase in stock compensation expense. Cash paid for investments in films and television programs decreased 7 percent to $58 million for the first quarter. The decrease was primarily due to timing of payments for certain TWC titles partially offset by increased investment in original programming. The company plans to make additional investments in original programming in the future. Share Repurchases From February 1, through April 30, 940,400 shares of Series A common stock were purchased at an average cost per share of $21.51 for total cash consideration of $20.2 million. Starz has approximately $378.7 million remaining under its current repurchase authorization. Starz is an integrated global media and entertainment company with operating units that provide subscription video programming on domestic U.S. pay television channels (Starz Networks), global content distribution (Starz Distribution) and animated television and movie production (Starz Animation). More information: www.starz.com ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]