AMC Networks Sees Revenue Drop, But Streaming Subscribers Rise to 12.4M

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In the fourth quarter, AMC Networks earned revenues amounting to approximately $599 million, marking a decrease of 12% compared to the same timeframe last year. Their adjusted earnings per share also dropped, from 72 cents last year to 64 cents this time around.

Both numbers missed Wall Street earnings expectations. 

In the domestic operations sector, AMC Networks reported a 4% decrease in subscription revenue to $314 million during the fourth quarter. This decline was attributed to decreases in linear subscribers, although it was partially countered by an 8% increase in streaming revenue, which reached $156 million. This growth in streaming revenues stemmed from a year-on-year rise in subscribers and price increases.

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AMC Networks’ domestic operations unit saw a decrease of 4% in subscription revenue to $314 million for the fourth quarter, primarily due to reductions in linear subscribers. However, this was partially offset by a surge in streaming revenue, which rose by 8% to $156 million. This increase in streaming revenues can be attributed to an uptick in year-over-year subscribers and price hikes.

2024 wrapped up with me having joined the ranks of 12.4 million fellow gamers who’ve subscribed to the company’s streaming services – that’s AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE included! Last year, I was just one among 11.4 million, so it seems more people are jumping into this gaming world with me.

AMC Networks recorded a $268.7 million charge on its domestic operations division because of ongoing weakness in the domestic cable market and international broadcasting sectors. This has led to reduced expectations for future profits and a decline in the value of comparable companies.

In all, AMC Networks recorded a total of $399.5 million in impairment and other expenses. This amount includes a $102 million charge for the international division, AMCNI, and a $29.2 million charge related to long-lived asset impairment at BBC America, which AMC Networks acquired in November.

During the final quarter, our advertising earnings dropped by 12% to reach approximately $139 million. This decline was largely attributed to a drop in linear ratings and a difficult environment for advertising within the entertainment industry. However, this decrease was somewhat counterbalanced by an increase in digital and advanced advertising revenues.

Furthermore, the company announced a total operational deficit of $254 million for this quarter, with impairment costs, other expenses, and restructuring costs amounting to $303 million, as well as additional restructuring-related charges of $43 million. This is a significant increase from the operating loss of $11.4 million in the same period last year.

2024 was a successful year for AMC Networks, with our performance in the fourth quarter contributing to this positive outcome. Notably, we met our full-year expectations across all critical financial indicators. This accomplishment includes the impressive generation of $331 million in free cash flow. As expressed by AMC Networks CEO, Kristin Dolan, we are both delighted and motivated by these results.

Dolan stated, “So far, our free cash flow has been robust, and we’re raising our estimate to around $550 million in cumulative free cash flow for the years 2024 to 2025. We’ve formed and broadened innovative partnerships that are propelling our company forward during a time of industry-wide change that is testing all media companies. Furthermore, we’ve kept fans happy by providing top-notch and unique content on both our specialized platforms and various partner platforms, and we’ve enhanced our targeting abilities to set our advertising business apart.

More to come.

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2025-02-14 16:25