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 (NASDAQ:CHTR), Netflix Inc (NASDAQ:NFLX), and Amazon.Com Inc (NASDAQ: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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