Shares Of AMC Networks Surge As Q2 Results Show Improved Adjusted EBITDA And Strong Operating Cash Flow

AMC NETWORKS INC AMCX reported a second-quarter FY23 revenue decline of 8% year-on-year to $678.63 million, missing the consensus of $717.48 million.

Lower advertising, domestic affiliate, and 25/7 Media production services revenues drove the decline.

Adjusted operating income decreased 10% to $177 million, representing a margin of 26% consistent with the prior year period.

Domestic operations revenues decreased 6% Y/Y to $582 million.

International and other revenues decreased 21% Y/Y to $99 million.

Adjusted EPS loss of $2.02 beat the consensus of $1.77.

Adjusted EBITDA improved by $68.8 million to $7.1 million.

AMC Networks generated $158 million in operating cash flow, up from $41 million a year ago. The company held $893.4 million in cash and equivalents.

Chief Executive Officer Kristin Dolan said, "Even during a period of industry-wide uncertainty and change, we are seeing the benefits of our strategy play out in our financial results, which for the second quarter include year-over-year increases in free cash, streaming subscribers, and streaming revenue, as well as healthy margins."

Price Action: AMC shares were surging 17.35% higher to $14.41 during early trading on Friday.

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