AMC Networks reported its first-quarter 2024 earnings Friday, revealing U.S. TV ad sales dropped by 13% during the January-March period and streaming revenues ticked up 3%.
The company reports it has reached 11.5 million total streaming subscribers across its offerings, including AMC+, which this quarter added “The Walking Dead: The Ones Who Live” starring Andrew Lincoln and Danai Gurira reprising their iconic “TWD” roles as Rick and Michonne. That’s a 3% year-over-year subscriber increase from the 11.2 million the company reported at the end of March 2023, and an uptick from the 11.4 million streaming subs AMC Networks had at the end of 2023.
AMC Networks’ streaming platforms include AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and HIDIVE. Those digital offerings are in addition to the company’s linear channels AMC, BBC America (a joint venture with BBC Studios), IFC, SundanceTV, WE tv and IFC Films.
Domestic revenue decreased 14% overall compared to Q1 2023, with ad sales down the above-mentioned 13%. Distribution sales dropped 15% year over year with subscription sales down 7%, streaming sales up 3%, affiliate revenue decreasing 14% and content licensing down 40%.
For AMC Networks’ international division revenue decreased 30% for the quarter. Distribution and other revenues were down 40% due to the year-ago sale of the company’s stake in 25/7 Media. Sub sales were down 10% and content licensing plummeted 90% due to the ale of 25/7 Media. Ad sales were up 16% on increased ratings and growth in European ad markets.
Wall Street forecast earnings per share (EPS) of $1.67 on $602.6 million in revenue for AMC Networks’ Q1, according to analyst consensus data provided by LSEG, formerly Refinitiv. AMC Networks reported diluted EPS of $1.03 and adjusted EPS of $1.16 on $596 million in revenue, which is a 17% drop from Q1 2023 revenue.
Free cash flow stood at $144 million for the quarter. Net debt was $1.67 billion.
AMC Networks reported a Q1 profit of $45.8 million.
“In the first quarter, we continued to execute on our strategic priorities, including the ongoing delivery of healthy free cash flow,” AMC Networks CEO Kristin Dolan said in a letter to shareholders Friday. “As new technologies transform the way media is consumed, we continue to produce great content and make it available to viewers whenever and wherever they want to watch. We recently strengthened our balance sheet by completing a series of financing transactions that meaningfully extended our debt maturities. This creates substantial flexibility for us as we continue to leverage our core strengths and reorient our business around the consumer-driven changes that are happening across the industry.”
AMC Networks stock closed Thursday at $13.73 per share. The regular U.S. stock markets will reopen at 9:30 a.m. ET.
Dolan and other AMC Networks executives will host a conference call at 8:30 a.m. ET to discuss the quarter in greater detail.
