Starz Entertainment (STRZ) Raymond James 47th Annual Institutional Investors Conference summary

Business positioning and strategy

• Positioned as a complementary specialty streaming service, focusing on women and underrepresented audiences, rather than competing directly with broad-based global streamers.

• Transitioned from a linear cable model to a digital-first business, now generating 70% of revenue from digital channels.

• Maintains profitability by avoiding overspending on content and leveraging partnerships with platforms like Amazon, Hulu, and Roku.

• Two-thirds of subscribers come through wholesale partners, with one-third direct-to-consumer.

• Separated from Lionsgate three quarters ago, enabling cost reductions and operational focus as a standalone network.

Financial performance and outlook

• Achieved margin growth from 15% to a projected 16% in 2026, targeting 20% by 2028 through cost control and content de-aging.

• Content spend reduced from $720–$725 million to below $650 million by 2026, with a goal to reach $600 million.

• Free cash flow conversion is strong, with unlevered free cash flow expected between $80–$120 million.

• Leverage reduced to 2.9x, aiming for 2.5x, with capital allocation focused on further deleveraging and content investment.

• Revenue growth expected at 1–3% annually, with 70% of margin converting to free cash flow.

Content strategy and pipeline

• Focuses on original programming and spinoffs targeting core demographics, with recent launches like "Outlander" final season, "Blood of My Blood," "Raising Kanan," "P-Valley," and "Fightland."

• Developing new shows such as "All Fours," "Kingmaker," and "Masquerade" to expand reach within an 80 million household TAM.

• Increasing ownership of content to reduce costs and enable international sales, aiming for 50% owned content.

• Content pipeline is robust, supporting both top and bottom-line growth and consistent subscriber engagement.