Net income at premium cable channel falls, but the company beats projections
Net income plunged 7 percent at Starz during the second quarter of 2013 on higher production costs, but the premium cable channel beat analysts projections.
Shares of Starz were up 6.54 percent to $23.96 as of 10:56 EST on the strength of its report.
The company behind shows like "Magic City" and "Da Vinci's Demons" reported profits of $63.9 million, or 52 cents a share, down from $68.7 million, or 57 cents a share, during the same period a year ago. However, analysts polled by Thomson Reuters projected earnings of 42 cents a share for the three month period ending in June.
Revenues at the company also exceeded projections, climbing 29 percent to $517.4 million. Wall Street had been expecting Starz to report $406.77 million in revenue.
Subscriptions at Starz jumped 5 percent to hit an all-time high of 21.8 million, while the company's sister channel Encore saw subscriptions rise 3 percent to 35.1 million.
In addition, Starz said it had greenlit "Power," a new series from executive producer Curtis "50 Cent" Jackson and expects it to air in 2014. It has also commissioned a second season of its upcoming pirate show "Black Sails" before an episode has even debuted. The show premieres in January.