AMC Networks Q3 Earnings: Streaming Subscriber Growth Shines Amid Ad Revenue Dip Bolstered By Netflix, Amazon Partnerships

AMC Networks Inc (NASDAQ: AMCX) reported a fiscal third-quarter 2024 revenue decline of 5.9% year over year to $599.6 million, beating the analyst consensus estimate of $587.6 million.

The American entertainment company's adjusted EPS of 91 cents fell 50.8% yearly, beating the analyst consensus estimate of 62 cents. 

Domestic Operations: Affiliate revenue decreased 13% to $164 million due to basic subscriber declines.

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• Advertising revenues decreased 10% Y/Y to $133 million due to anticipated linear ratings declines and a challenging ad market. 
• Content licensing revenues increased 31% to $81 million due to the availability of deliveries.
• Despite these setbacks, AMC Networks reported that streaming subscribers increased by 5% to 11.8 million compared to 11.1 million subscribers as of Sept. 30, 2023.
• Streaming revenues of $152 million increased by 7%, primarily driven by year-over-year streaming subscriber growth and price increases.
• The consolidated adjusted operating income decreased 19% to $150 million, with free cash flow at $53.94 million.

CEO Kristin Dolan emphasized the company's focus on critical strategic pillars: programming, partnerships, and profitability.

Dolan noted significant progress in all three areas during the quarter.

Year-to-date, the company has generated $293 million in free cash flow, moving steadily toward its goal of around $500 million in cumulative free cash over two years.

Dolan also highlighted new and expanded partnerships with significant players like Charter Communications, Inc CHTR, Netflix Inc NFLX, and Amazon.Com Inc AMZN, which are helping drive the company forward while delivering unique, high-quality programming across a growing range of platforms.

Price Action: AMC Networks stock is up 4.79% to $8.75 premarket at the last check on Friday. It plunged close to 57% year-to-date as the company’s adjusted EPS missed the consensus in the last 3 quarters.

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