Core Insights - Starz Entertainment Corp. reported modest results for 2Q25, missing revenue and adjusted EPS estimates, with revenue of $319.7 million, down 8.0% YoY from $347.6 million in 2Q24 [2][14] - The company experienced an operating loss of $26.9 million in 2Q25, compared to an operating income of $10.1 million in the prior-year period [2][14] - Starz ended the quarter with 12.2 million U.S. OTT subscribers, a sequential decline of 120,000, and total U.S. subscribers reached 17.6 million, down 410,000 from the previous quarter [2][15] Financial Performance - Adjusted OIBDA for 2Q25 was $33.4 million, down from $56.3 million in 2Q24, leading to a decrease in adjusted OIBDA margin to 10.4% from 16.2% [2][14] - The net loss for the quarter was $42.5 million, compared to a net income of $4.2 million in 2Q24, with diluted loss per share at $2.54 versus diluted earnings per share of $0.26 in 2Q24 [2][14] Subscriber Trends - The decline in subscribers was attributed to lower OTT additions and ongoing pressure on linear subscribers, particularly due to the underperformance of BMF Season 4 [2][15] - Despite the overall decline, the Outlander prequel, Blood of My Blood, achieved strong performance, becoming the third-highest series premiere in Starz history for subscriber additions [2][10] Strategic Outlook - Starz is focusing on a digital-first growth strategy and expects sequential revenue and OTT subscriber growth in upcoming quarters, supported by a strong content lineup [2][8] - The company aims to reach $200 million in adjusted OIBDA by year-end and convert 70% of that into free cash flow by 2026 [2][8] Valuation - The intrinsic value of Starz Entertainment Corp. is estimated at $18.00 per share, based on a 2026e EV/EBITDA multiple of 4.4x, maintaining a 'Buy' rating with an implied upside of 33.3% from the current market price of $13.50 [6][16] - The valuation is sensitive to fluctuations in adjusted EBITDA and EV/EBITDA multiples, with potential changes impacting the target prices significantly [18] Company Strategy - Starz is strategically exiting seven international territories to streamline its business and is prioritizing lower-cost original content production [21] - The company is targeting key demographics and aims to achieve a 20% margin run rate by FY28 to boost profitability [11][12]

Group 1 - U.S. Bancorp (USB) has partnered with Fiserv (FI) to integrate its Elan Financial Services credit card program into Fiserv's Credit Choice solution, enhancing digital card issuance capabilities for financial institutions [1][8] - The integration supports USB's digital-first strategy, allowing consumers and small businesses to manage both debit and credit card accounts within a unified digital platform [2][8] - The collaboration is expected to accelerate this summer, with full conversion of the portfolio targeted by the end of 2025, and digital card solutions to be integrated by the first half of 2026 [3][8] Group 2 - USB shares have increased by 3.1% over the past three months, outperforming the industry's growth of 0.6% [4] - USB currently holds a Zacks Rank of 3 (Hold) [6] Group 3 - Other financial firms are also pursuing similar strategic partnerships, such as UBS Group AG's collaboration with General Atlantic to focus on private credit opportunities [9][10] - Citigroup, Inc. has entered a multi-year agreement with Google Cloud to support its digital strategy through cloud technology and AI, aiming to modernize its technological infrastructure [11][12]