AMC Networks Q4 Earnings: Streaming Revenue And Subscriber Growth Cushions Revenue Decline

AMC Networks Inc (NASDAQ: AMCX) reported a fiscal fourth-quarter 2024 revenue decline of 11.7% year over year to $599.31 million, missing the analyst consensus estimate of $609.44 million.

The American entertainment company’s adjusted EPS of 64 cents fell 11.1% year-over-year, missing the analyst consensus estimate of 72 cents. 

Domestic Operations: Affiliate revenue decreased 13% due to basic subscriber declines.

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Advertising revenues decreased 12% year over year to $139 million due to anticipated linear ratings declines and a challenging ad market. Content licensing revenues decreased 30% to $67 million due to the availability of deliveries.

Despite these setbacks, AMC Networks reported that streaming subscribers increased by 8% to 12.4 million compared to 11.4 million subscribers as of December 31, 2023.

Streaming revenues of $156 million increased by 8%, primarily driven by year-over-year streaming subscriber growth and price increases.

The consolidated adjusted operating income increased 23% to $152 million, with free cash flow at $37.6 million.

The company recognized impairment charges of $268.7 million related to the Domestic Operations reporting unit and $34.0 million related to the AMCNI reporting unit, in addition to an impairment charge of $68.0 million related to the AMCNI reporting unit as a result of an interim goodwill impairment test in the second quarter of 2024.

Guidance: AMC Networks increased its free cash flow guidance to approximately $550 million of cumulative free cash flow over the fiscal 2024 and 2025 two-year period, up from a prior outlook of $500 million. 

AMC Networks stock plunged over 29% in the last 12 months.

Price Action: At the last check on Friday, AMC Networks stock was up 6.71% to $10.50 premarket.

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