Brent Panter's questions to Lions Gate Entertainment Corp (STRZ) leadership • Q2 2025
Question
Brent Panter inquired about STARZ's perspective on M&A, the definition of 'scale' in the media industry, and potential prerequisites for deal-making. He also asked about the primary factors that could cause STARZ to over- or under-achieve its 20% adjusted OIBDA margin target by 2028.
Answer
President and CEO Jeffrey Hirsch stated that STARZ has a clear plan to deleverage and reach a 20% margin, making it a valuable asset or platform for scaling. He explained the margin goal is primarily driven by transitioning the content slate to owned-and-produced shows like 'Fightland,' which have a 30% lower per-episode cost. He added that modest top-line growth of 1-3% and potential international sales provide further upside to achieving the target.