Starz First-Quarter Earnings Rise, Subscribers Drop

The company, led by CEO Chris Albrecht, has continued to ramp up its original series and ended March with 56.3 million Starz and Encore subscribers.

Premium TV company Starz on Thursday reported improved first-quarter earnings, but lower subscriber figures.

The company, led by CEO Chris Albrecht, posted quarterly earnings of $66.8 million, compared with $58.2 million in the year-ago period. Operating profit and adjusted operating income before depreciation and amortization (OIBDA) also increased.

In the fist quarter, total company subscriptions declined to 56.3 million from 57.1 million as of the end of 2013 and 56.7 million as of the end of the first quarter of 2013. The company cited "retail price increases, tighter credit policies, reduced promotional activity and/or programming package changes" at certain pay TV distributors as the reason.

The Starz-branded services ended March with 21.9 million subscribers, down from 22.2 million as of the end of 2013, but up from 21.6 million at the end of the comparable year-ago quarter. Encore ended March with 34.4 million subscriptions, down from 34.9 million at the end of 2013 and 35.1 million in the year-ago period.

Still, Starz Networks revenue rose in the first quarter as the company cited "higher effective rates."