UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Starz Entertainment Corp. (Exact name of registrant as specified in its charter) British Columbia, Canada N/A (State or other jurisdiction ...

Exhibit 99.1 Starz Entertainment Corp. Reports Results for the Third Quarter Ended September 30, 2025 Third Quarter Revenue was $320.9 Million Third Quarter Operating Loss was $(34.8) Million Third Quarter Adjusted OIBDA was $21.8 Million Total Revenue, OTT Revenue, and U.S. OTT Subscriber Growth U.S. OTT Subscriber Growth of 520,000 YTD and 670,000 YoY Engagement on STARZ App Reached 12-Month High During Period Management Reiterates All Previously Provided 2025 Outlook SANTA MONICA, CA, and VANCOUVER, B.C. ...

Restructuring and Impairment - Starz Entertainment Corp. incurred impairment charges totaling $456.7 million from the inception of its restructuring plan through June 30, 2025[171]. - The company executed a restructuring plan to shut down its international LIONSGATE+ business, exiting all international territories except Canada, India, and Southeast Asia, completed in May 2024[172]. - The restructuring initiatives included the removal of certain programming from the Starz Platform, with further evaluations planned for future content[169]. - The company anticipates a net future cash outlay of approximately $45.0 million for impairment charges related to content commitments in exited territories[263]. Financial Performance - Total revenue for the quarter ended June 30, 2025, was $319.7 million, a decrease of $27.9 million or 8.0% compared to $347.6 million in the same quarter of 2024[214]. - OTT revenue decreased by $13.3 million (5.7%) to $221.1 million, while linear and other revenue declined by $14.6 million (12.9%) to $98.6 million[214]. - The total number of domestic subscribers decreased to 17.59 million from 18.93 million, with OTT subscribers at 12.18 million and linear subscribers at 5.41 million[217]. - Operating loss for the quarter was $26.9 million, a decline of $37.0 million compared to an operating income of $10.1 million in the prior year[214]. - Net loss from continuing operations was $42.5 million, a significant increase from a net income of $1.1 million in the same quarter of 2024[214]. - Starz Networks reported an Adjusted OIBDA of $33.4 million for the quarter ended June 30, 2025, down $23.9 million from $57.3 million in the same quarter of 2024[245]. Expenses and Costs - The Starz Business incurred a $10.0 million annual charge for corporate general and administrative expenses from Old Lionsgate under the Shared Services Agreement[189]. - General and administrative expenses increased by $2.5 million (9.4%) to $29.1 million, reflecting the costs associated with operating as an independent public company[214]. - Advertising and marketing expenses decreased by $19.3 million (23.3%) to $63.4 million, influenced by fewer new series launches during the period[214]. - Depreciation and amortization expense increased by $7.1 million to $48.7 million for the quarter ended June 30, 2025, up from $41.6 million in the same quarter of 2024[230]. - Interest expense rose by $2.4 million (22.2%) to $13.2 million, contributing to the overall financial challenges faced during the quarter[214]. Debt and Financing - Following the Separation, Starz Entertainment Corp. issued $389.9 million aggregate principal amount of new 5.5% exchange notes due 2029, reducing the outstanding principal amount of the 5.5% Senior Notes to $325.1 million[184]. - The company’s total aggregate debt outstanding, including $300.0 million outstanding per Term Loan A, was $625.1 million post-Separation[184]. - The company had $300.0 million of 5.5% senior notes outstanding as of June 30, 2025, down from $325.1 million in the same period of 2024[249]. - Total future repayment of debt and other commitments under contractual obligations is estimated at $1,820.7 million, with $814.5 million due in the next 12 months[270]. - The company’s programming related obligations commitments total $419.2 million, with $260.1 million expected to be repaid in the next 12 months[270]. Cash Flow and Liquidity - Cash and cash equivalents increased to $51.6 million as of June 30, 2025, compared to $17.8 million as of June 30, 2024[246]. - The company reported a net cash flow from operating activities of $65.4 million for the quarter ended June 30, 2025, compared to a cash outflow of $26.8 million for the same quarter in 2024, resulting in a net change of $92.2 million[274]. - The company had a significant increase in cash provided by investing activities, totaling $75.2 million for the quarter ended June 30, 2025, compared to a cash outflow of $71.6 million for the same quarter in 2024[275]. - Cash flow from operations, cash on hand, and borrowings under a $150 million senior secured revolving credit facility are expected to meet operational cash and debt service requirements for the next twelve months[264]. Interest Rate and Currency Management - The Company entered into $150.0 million worth of pay-fixed interest rate swaps to manage interest rate risk[286]. - The variable interest rate programming notes incur SOFR-based interest at a weighted average rate of approximately 8.8%[287]. - The average interest rate for Term Loan A is 7.3%[288]. - The average interest rate for programming notes is 8.8%[288]. - The Company has entered into forward foreign exchange contracts to hedge foreign currency exposures on future programming production costs[284]. - Interest rate swap contracts were entered into to mitigate the impact of interest rate changes on earnings and cash flows[285]. - Certain borrowings are at variable rates, exposing the Company to interest rate risk, which could decrease net income if rates increase[286]. Corporate Changes - Starz Entertainment Corp. will change its fiscal year end from March 31 to December 31, with the next fiscal year end on December 31, 2025[191]. - The company’s financial statements prior to the Separation were prepared on a carve-out basis, reflecting the combined historical financial position of the Starz Business[174]. - Starz Entertainment Corp. is considered the accounting spinnee or divested entity following the Separation from Old Lionsgate[168].

Financial Performance - STARZ reported consolidated revenue of $319.7 million for the quarter ended June 30, 2025, a decrease from $347.6 million in the same quarter of 2024, representing a decline of approximately 8.5%[4] - The net loss for the quarter was $(42.5) million, translating to a net loss per share of $(2.54), compared to a net income of $4.2 million in the prior year[4][12] - The company reported an operating loss of $(26.9) million, compared to an operating income of $10.1 million in the same quarter of the previous year[12] - Adjusted OIBDA for the quarter was $33.4 million, a decrease from $56.3 million in the same period of 2024, reflecting a decline of approximately 40.6%[14] - The total number of Starz Networks subscribers as of June 30, 2025, was 19.08 million, down from 21.30 million a year earlier, reflecting a decrease of approximately 10.4%[22] Subscriber Metrics - STARZ ended the quarter with 12.2 million U.S. Over-The-Top (OTT) subscribers, reflecting a sequential decline of 120,000 subscribers, while total U.S. subscribers decreased by 410,000 to 17.6 million[5] - STARZ's total North American subscribers, including Canada, decreased by 520,000 to 19.1 million, with Canadian subscribers declining by 110,000 due to continued linear declines[5] - Total domestic subscribers as of June 30, 2025, were 17.59 million, down from 18.93 million as of June 30, 2024, indicating a decrease of about 7.1%[22] - OTT subscribers in the U.S. decreased to 12.18 million as of June 30, 2025, from 12.44 million a year earlier, a decline of approximately 2.1%[22] Costs and Expenses - Total share-based compensation expense for the three months ended June 30, 2025, was $7.4 million, up from $5.2 million in the same period of 2024, representing an increase of 42.3%[20] - The restructuring and other costs for the three months ended June 30, 2025, amounted to $6.4 million, compared to a cost of $0.6 million in the same period of 2024[16] - The company reported depreciation and amortization of $48.7 million for the three months ended June 30, 2025, compared to $41.6 million for the same period in 2024, an increase of 16.9%[14] Debt and Cash Position - STARZ's cash and cash equivalents increased to $51.6 million from $17.8 million at the beginning of the quarter[11][13] - The company has a total net debt of $573.5 million, with $300 million outstanding on its Term Loan A credit facility and $325.1 million in senior unsecured notes[5] Future Outlook - The company anticipates sequential revenue and OTT subscriber growth in Q3 and Q4 of 2025, supported by a compelling content slate and improved cost structure[2] - STARZ's content strategy has led to significant subscriber additions, with the premiere of "Outlander: Blood of my Blood" achieving the third highest series premiere in the company's history[3] International Segment - The company’s international segment reported an adjusted OIBDA of $1.3 million for the three months ended June 30, 2025, compared to a loss of $1.0 million in the same period of 2024[14] Adjusted OIBDA Leverage Ratio - The adjusted OIBDA leverage ratio is a key metric for assessing the company's ability to meet its debt obligations and maintain financial flexibility[27]

Debt Obligations and Liquidity - Starz's cash flow from operations is expected to be significantly dedicated to servicing its debt obligations, which may limit its ability to fund capital expenditures and growth initiatives [147]. - Starz may face substantial liquidity problems if its cash flows and capital resources are insufficient to fund its debt service obligations, potentially leading to asset disposals or restructuring [148]. - Starz's subsidiaries may not be able to generate sufficient cash flow to support the repayment of corporate indebtedness, as certain subsidiaries are not guarantors of this debt [149]. - A breach of covenants under Starz's corporate indebtedness agreements could result in an event of default, allowing creditors to accelerate repayment [154]. Interest Rate Risk - As of March 31, 2025, Starz's 5.5% Senior Notes had an outstanding carrying value of $699.9 million, with a fair value of $623.7 million; a 1% increase in interest rates would decrease the fair value by approximately $21.2 million [347]. - Starz's variable interest rate programming notes incur SOFR-based interest at a weighted average rate of approximately 6.51%; a quarter point increase in interest rates would result in a $0.2 million increase in annual net interest expense [346]. - Starz's exposure to interest rate risk is significant, as certain borrowings are at variable rates, which could increase debt service obligations if interest rates rise [345]. Corporate Governance and Restrictions - The agreements governing Starz's corporate indebtedness impose restrictive covenants that limit its operational flexibility, including restrictions on incurring additional debt and paying dividends [151]. Currency and Tax Risks - The company does not currently hold foreign exchange contracts to hedge currency risks, which could expose it to credit loss if counterparties fail to perform [344]. - Changes in tax laws could adversely affect Starz's financial condition, particularly if it were to be treated as a U.S. corporation for tax purposes, leading to increased tax liabilities [156].

Revenue Growth - The company reported a significant increase in revenue, reaching $1.2 billion, representing a 15% year-over-year growth[1] - The company expects to achieve a revenue target of $1.5 billion for the next quarter, indicating a projected growth of 25%[3] - New product launches are anticipated to contribute an additional $200 million in revenue over the next fiscal year[4] Subscriber Growth - User data showed a total of 10 million subscribers, an increase of 20% compared to the previous quarter[2] Market Expansion - Market expansion efforts are focused on entering three new international markets by the end of the fiscal year[6] - The company has completed the acquisition of a smaller competitor for $300 million, expected to enhance market share[7] Cost Management - A restructuring plan is in place, projected to save $30 million annually in operational costs[8] Technology Investment - The company is investing $50 million in new technology development to enhance streaming capabilities[5] Content Strategy - The company is exploring partnerships with major content creators to diversify its content offerings[9] Risk Factors - Forward-looking statements indicate potential risks including economic uncertainty and competition in the entertainment industry[10]

Financial Performance - Lionsgate reported third quarter revenue of $970.5 million, a decrease from $975.1 million in the prior year quarter[3]. - Net loss attributable to Lionsgate shareholders was $21.9 million, or $0.09 diluted net loss per share, compared to a net loss of $106.6 million in the prior year quarter[2][19]. - Adjusted net income attributable to Lionsgate shareholders was $68.4 million, or $0.28 adjusted diluted net income per share[2][3]. - Operating income for the quarter was $35.8 million, a significant improvement from an operating loss of $43.5 million in the prior year quarter[19]. - The company reported a net cash flow used in operating activities of $163.0 million for the three months ended December 31, 2024, compared to a net cash flow provided of $128.2 million in the same period of 2023[92]. - The company experienced a significant decrease in net cash flows provided by operating activities, reporting $(118.9) million for the three months ended December 31, 2024, compared to $71.1 million in the same period of 2023[58]. - Adjusted free cash flow for the three months ended December 31, 2024, was $12.8 million, a decrease from $63.9 million in the same period of 2023[58]. - Basic net income per common share for the three months ended December 31, 2024, was $0.02, compared to a loss of $0.16 per share in the same period of 2023[90]. Segment Performance - The Studio Business reported revenue of $713.8 million, an increase of 3% from the prior year quarter, with adjusted OIBDA up 45% to $112.0 million[5]. - Television Production segment revenue increased 63% to $404.6 million, driven by higher episodic deliveries and licensing of library content[7]. - The Motion Picture segment revenue decreased to $309.2 million, attributed to the comparison with last year's successful releases[6]. - Total segment revenues for the Studio Business increased to $713.8 million in Q3 2024 from $691.6 million in Q3 2023, with Motion Picture revenues at $309.2 million and Television Production revenues at $404.6 million[34]. - Total segment profit for the three months ended December 31, 2024, was $176.7 million, slightly down from $182.0 million in the same period of 2023[34]. - The Motion Picture segment profit for Q3 2024 was $83.6 million, a decrease of 16.7% from $100.4 million in Q3 2023[99]. - Television Production segment profit surged to $60.9 million in Q3 2024, compared to $8.1 million in Q3 2023[99]. Subscriber Metrics - North American OTT subscribers grew by 170,000 sequentially, indicating a rebound in subscriber growth for STARZ[8]. - As of June 30, 2024, Starz North America had 13.20 million OTT subscribers, a decrease of 1.4% from the previous quarter, while total subscribers were 21.30 million, down 2.3%[40]. - The total global subscribers, excluding territories exited, were 27.17 million as of June 30, 2024, a decline of 2.0% from the previous quarter[40]. Cash Flow and Investments - The company reported a significant increase in investment in films and television programs, with a net cash outflow of $530.9 million for the three months ended December 31, 2024[21]. - Cash, cash equivalents, and restricted cash at the end of the period were $254.1 million, down from $333.2 million at the end of the previous year[21]. - The company incurred direct operating expenses of $457.1 million for the three months ended December 31, 2024, compared to $433.6 million in the same period of 2023, an increase of 5.4%[90]. - Total production loans and programming notes increased to $1,940.2 million at the end of the period, up from $1,931.0 million at the beginning[62]. - The company reported capital expenditures of $5.4 million for the three months ended December 31, 2024, compared to $6.4 million in the same period of 2023[58]. Restructuring and Impairment - Lionsgate is preparing for the separation of its studio and STARZ, with a focus on enhancing profitability and growth strategies[4]. - The Company recorded restructuring and other costs of $43.3 million for the three months ended December 31, 2024, significantly lower than $116.9 million in the same period of 2023[45]. - Content impairment charges related to the Media Networks segment were $6.4 million for the three months ended December 31, 2024, a substantial decrease from $77.8 million in the prior year[46]. - The Company has incurred total impairment charges of $735.1 million since the inception of its restructuring plan through December 31, 2024[46]. - The Company plans to continue evaluating its Media Networks business and may expand its restructuring plan, potentially exiting additional territories[47]. Non-GAAP Measures - Adjusted OIBDA is a key performance measure, reflecting operating income before adjusted depreciation and amortization, and is used to evaluate the aggregate operating performance of the business[66]. - The Company utilizes non-GAAP financial measures to assess its operating performance, which are not a substitute for GAAP measures but provide useful insights for investors[81]. - Adjusted Net Income (Loss) attributable to Lions Gate Entertainment Corp. shareholders is adjusted for various non-operating items, providing a clearer view of the Company's operational performance[78]. - The total segment profit combines the Motion Picture and Television Production segments, providing insight into the overall profitability of the Company's operations[126]. - Adjusted Free Cash Flow is defined as net cash flows from operating activities minus capital expenditures, plus or minus production and related loans, providing a clearer picture of liquidity[129].

Financial Performance - Total revenues for the three months ended September 30, 2024, were $948.6 million, a decrease of 6.6% compared to $1,015.5 million for the same period in 2023[18]. - Operating loss for the three months ended September 30, 2024, was $(88.6) million, significantly improved from $(817.5) million in the same period last year[18]. - Net loss attributable to Lions Gate Entertainment Corp. shareholders for the three months ended September 30, 2024, was $(163.3) million, compared to $(886.2) million in the prior year[18]. - Lions Gate Entertainment Corp. reported a net loss of $177.8 million for the three months ended September 30, 2024, compared to a net loss of $887.9 million for the same period in 2023[21]. - The comprehensive loss attributable to Lions Gate shareholders was $163.9 million for the three months ended September 30, 2024, down from $888.4 million in the prior year[21]. - The company had a basic net loss per common share of $(0.68) for the three months ended September 30, 2024, compared to $(3.79) for the same period in 2023[19]. - For the six months ended September 30, 2024, Lions Gate Entertainment Corp. reported a net loss of $240.9 million, an improvement from a net loss of $959.4 million in the same period of 2023[29]. Assets and Liabilities - Total current liabilities decreased to $3,790.5 million as of September 30, 2024, from $3,992.1 million as of March 31, 2024[15]. - Cash and cash equivalents decreased to $229.6 million as of September 30, 2024, down from $314.0 million as of March 31, 2024[15]. - Total assets increased slightly to $7,146.8 million as of September 30, 2024, compared to $7,092.7 million as of March 31, 2024[15]. - Debt, including the short-term portion, increased to $2,460.3 million as of September 30, 2024, from $2,479.9 million as of March 31, 2024[15]. - The accumulated deficit for Lions Gate was $3,396.4 million as of September 30, 2024, compared to $3,467.5 million as of September 30, 2023[26]. - Lions Gate's total equity (deficit) was $(224.6) million as of September 30, 2024, compared to $(218.8) million as of September 30, 2023[26]. Investments and Acquisitions - Investment in films and television programs and program rights increased to $3,284.8 million as of September 30, 2024, up from $2,762.2 million as of March 31, 2024[15]. - The company completed a business combination with Screaming Eagle Acquisition Corp., resulting in approximately $330.0 million of gross proceeds, including $254.3 million from private investments in public equities (PIPE) financing[42]. - The acquisition of a film library for approximately $35.0 million was completed, with the total investment in the library valued at $68.6 million[37]. - The acquisition of eOne was completed for an adjusted cash purchase price of $373.1 million, enhancing the company's film and television library and expanding its presence in Canada and the U.K.[47]. - The preliminary fair value of net assets acquired from eOne was estimated at $362.2 million, with goodwill recognized at $10.9 million[51]. Revenue Streams - Motion Picture revenues totaled $407.1 million for the three months ended September 30, 2024, compared to $395.9 million in the prior year, reflecting a 2.9% increase[125]. - Digital Media revenue for Home Entertainment was $114.5 million, down 30.8% from $165.7 million in the same quarter of 2023[125]. - Television Production revenues increased to $416.6 million for the three months ended September 30, 2024, up from $393.9 million in the same period of 2023, representing a 5.1% growth[125]. - Individual monetization for the three months ended September 30, 2024, was $348.8 million, up from $223.3 million in 2023, representing a 56.2% increase[62]. Expenses and Costs - The company reported a significant reduction in restructuring and other expenses to $6.1 million for the three months ended September 30, 2024, compared to $222.1 million in the same period last year[18]. - Total direct operating expenses were $643.2 million for the three months ended September 30, 2024, an increase from $557.1 million in the same period of 2023, representing a 15.4% increase[188]. - Interest expense increased to $74.3 million for the three months ended September 30, 2024, from $63.8 million in the same period of 2023[168]. - Total share-based compensation expense for the three months ended September 30, 2024, was $22.5 million, a decrease of 16.9% from $27.1 million in the same period of 2023[141]. - The company recorded a total of $6.1 million in restructuring and other costs for the three months ended September 30, 2024, compared to $222.1 million in the same period of 2023[151]. Cash Flow and Liquidity - The company reported a net cash flow used in operating activities of $(240.9) million, a decrease from $330.3 million in the prior year[29]. - As of September 30, 2024, the company had cash and cash equivalents of $229.6 million, down from $314.0 million as of March 31, 2024, indicating a decrease of 26.8%[194]. - The total cash, cash equivalents, and restricted cash amounted to $289.3 million as of September 30, 2024, compared to $371.4 million as of March 31, 2024, a decline of 22.1%[194]. Shareholder Information - The weighted average number of common shares outstanding was 239.3 million for the three months ended September 30, 2024, compared to 234.0 million for the same period in 2023[19]. - The Company had 500 million authorized Class A voting shares and 500 million authorized Class B non-voting shares as of September 30, 2024[140]. - The company has repurchased approximately $288.1 million in common shares to date, with $179.9 million remaining for potential repurchases[145]. Strategic Initiatives - The company anticipates continued focus on restructuring and potential market expansion strategies in the upcoming quarters[9]. - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[21].

Financial Performance - Lionsgate reported second quarter revenue of $948.6 million, with a net loss attributable to shareholders of $163.3 million or $0.68 diluted net loss per share[1][2] - Adjusted net loss attributable to shareholders was $102.5 million or $0.43 adjusted diluted net loss per share, with an adjusted OIBDA loss of $17.7 million[2][3] - Revenues for the three months ended September 30, 2024, were $948.6 million, a decrease of 6.6% compared to $1,015.5 million for the same period in 2023[17] - Net loss attributable to Lions Gate Entertainment Corp. shareholders was $163.3 million for the three months ended September 30, 2024, compared to a net loss of $886.2 million for the same period in 2023[17] - Total segment revenues for the three months ended September 30, 2024, were $948.6 million, a decrease of 6.5% from $1,015.5 million in the same period of 2023[27] - Total segment profit for the three months ended September 30, 2024, was $15.6 million, down from $173.5 million in the prior year, reflecting a significant decline[27] - The company reported a significant increase in amortization of films and television programs, totaling $486.5 million for the three months ended September 30, 2024, compared to $407.6 million in the same period of 2023[20] - Total adjusted OIBDA for the three months ended September 30, 2024, was $(17.7) million, compared to $140.7 million in the prior year[27] - Adjusted net income attributable to Lions Gate Entertainment Corp. shareholders for the six months ended September 30, 2024, was a loss of $81.6 million, compared to a profit of $38.8 million for the same period in 2023[49] Segment Performance - The Studio Business generated revenue of $823.7 million, a 4% increase from the prior year quarter, but reported an operating loss of $34.8 million[5] - Motion Picture segment revenue increased by 3% to $407.1 million, while segment profit decreased to $2.6 million due to underperformance of key releases[6] - Television Production segment revenue rose 6% to $416.6 million, but segment profit decreased to $24.4 million due to prior year strike impacts[7] - Starz Networks revenue for the three months ended September 30, 2024, was $343.0 million, slightly down from $344.0 million in the prior year[30] - The Motion Picture segment reported a profit of $2.6 million, a sharp drop from $67.5 million in the same quarter last year[27] - Media Networks segment profit for the three months ended September 30, 2024, was $27.2 million, down from $66.6 million in the same period of 2023[30] Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash at the end of the period were $289.3 million, an increase from $269.2 million at the end of the same period in 2023[20] - The company experienced a net cash outflow from operating activities of $82.0 million for the three months ended September 30, 2024, compared to a net cash inflow of $301.1 million for the same period in 2023[20] - Net cash flows used in operating activities for the three months ended September 30, 2024, were $(82.0) million, compared to $235.8 million in the prior year[84] - Cash flows from financing activities included borrowings of $629.9 million and repayments of $786.0 million, resulting in a net cash outflow of $156.1 million[114] Restructuring and Impairment - Approximately 8% of eligible U.S. employees opted for voluntary severance and early retirement packages as part of business streamlining efforts[4] - The company incurred goodwill and intangible asset impairment charges of $663.9 million for the six months ended September 30, 2024[38] - Restructuring and other costs amounted to $28.6 million for the six months ended September 30, 2024, compared to $254.0 million in the same period of 2023[40] - The company plans to continue evaluating its Media Networks business and may expand its restructuring plan, potentially incurring additional impairment charges[42] Non-GAAP Measures - The company utilizes non-GAAP financial measures to evaluate operating performance, including Adjusted OIBDA and Adjusted Free Cash Flow[60] - Adjusted Free Cash Flow is defined as net cash flows from operating activities minus capital expenditures, adjusted for production loans and unusual items[65] - Adjusted Net Income attributable to shareholders is calculated by adjusting net income for various non-operating items[72] - The company believes these non-GAAP measures provide useful information regarding results of operations and cash flows before non-operating items[75] Forward-Looking Statements - Lionsgate Studios' Adjusted OIBDA is projected to be between $300 million and $320 million for the fiscal year ending March 31, 2025[139] - Starz Networks' Adjusted OIBDA is estimated at $200 million for the fiscal year ending March 31, 2025[140] - The company acknowledges that individual items related to restructuring and COVID-19 charges are not reasonably estimable due to their unpredictable nature[140] - Forward-looking statements are based on reasonable expectations and assumptions as of November 7, 2024, but actual results may vary materially[142]

Financial Performance - Lionsgate reported first quarter revenue of $834.7 million, a decrease of 5.9% from the prior year quarter[2][3]. - Net loss attributable to Lionsgate shareholders was $59.4 million, or $0.25 diluted net loss per share[2][3]. - Adjusted net income attributable to Lionsgate shareholders was $20.9 million, or $0.09 adjusted diluted earnings per share[2][3]. - Revenues for the three months ended June 30, 2024, were $834.7 million, a decrease of 8.1% from $908.6 million in the same period of 2023[12]. - Total expenses for the same period were $815.9 million, down 11.8% from $925.4 million in 2023[12]. - Operating income for the quarter was $18.8 million, compared to a loss of $16.8 million in the prior year[12]. - Net loss attributable to Lions Gate Entertainment Corp. shareholders was $59.4 million, an improvement from a loss of $70.7 million in 2023[12]. - Total revenues for the three months ended June 30, 2024, were $588.4 million, a decrease of 5.3% compared to $625.0 million for the same period in 2023[64]. - Net loss for the three months ended June 30, 2024, was $44.4 million, compared to a net loss of $21.4 million for the same period in 2023[67]. Segment Performance - The Studio Business reported revenue of $588.4 million, a decrease of 5.9% year-over-year, with adjusted OIBDA of $58.3 million, down 5.5%[3][4]. - Motion Picture segment revenue decreased by 15% to $347.3 million, while segment profit increased by 24% to $86.1 million[4]. - Television Production segment revenue increased by 10% to $241.1 million, but segment profit decreased by 53% to $10.7 million[4]. - North American Media Networks revenue grew 1% to $345.3 million, with segment profit increasing by 54% to $58.5 million[5]. - Total segment profit for the three months ended June 30, 2024, was $143.0 million, up from $116.1 million in the same period in 2023[30]. - Total segment profit for Q2 2024 was $96.8 million, compared to $92.1 million in Q2 2023, reflecting an increase of about 5.1%[70]. Subscriber Metrics - North American OTT subscribers increased by 5.5% to 13.2 million compared to the prior year quarter[5]. - The total number of OTT subscribers in Starz North America as of June 30, 2024, was 13.20 million, a decrease from 13.38 million as of March 31, 2024[27]. - Total Starz subscribers, excluding territories exited, was 27.17 million as of June 30, 2024, down from 27.54 million as of March 31, 2024[27]. Cash Flow and Liquidity - The company reported a net cash flow used in operating activities of $(158.9) million, compared to $29.2 million in the prior year[14]. - Cash, cash equivalents, and restricted cash at the end of the period were $241.9 million, down from $394.1 million at the end of June 2023[14]. - Adjusted free cash flow for the three months ended June 30, 2024, was $(88.9) million, compared to $34.8 million in the same period of 2023[43]. - Net cash flows used in operating activities for the three months ended June 30, 2024, were $(117.6) million, compared to $37.7 million provided in Q2 2023[67]. - Cash, cash equivalents, and restricted cash at the end of the period were $216.6 million, down from $299.8 million at the end of Q2 2023[67]. Restructuring and Future Plans - The company is taking steps toward full separation by calendar year-end, subject to regulatory approvals[3]. - The estimated future cash outlay related to the current restructuring plan is between $50 million and $55 million[33]. - The Company continues to evaluate its restructuring plan and may exit additional territories or remove certain content from its platform in the future[34]. - The company plans to continue focusing on content development and expanding its distribution channels to enhance revenue growth in the future[16]. Impairments and Expenses - The Company recorded content impairment charges of $1.9 million for the Media Networks segment in the three months ended June 30, 2024, compared to $28.0 million for the same period in 2023[33]. - The company incurred impairments of $18.0 million related to operating lease right-of-use and leasehold improvement assets in the Television Production segment[35]. - Corporate general and administrative expenses increased to $33.3 million in Q2 2024 from $30.4 million in Q2 2023, an increase of about 9.5%[72]. - Total severance costs for the three months ended June 30, 2024, were $3.0 million, up from $2.5 million in the same period of 2023[79]. Non-GAAP Measures - Adjusted OIBDA is defined as operating income before adjusted depreciation and amortization, adjusted for various costs including restructuring and COVID-19 related charges[48]. - The company uses non-GAAP financial measures to evaluate the operating performance of its business, which are in addition to GAAP measures[47]. - Adjusted Free Cash Flow is defined as net cash flows from operating activities minus capital expenditures, adjusted for production loans and unusual items[96]. - The company believes that adjusted measures provide useful information regarding operating performance and cash flows before non-operating items[105].