AMC Networks saw revenue decline domestically and internationally as it was hit by falls in advertising and distribution revenues, offset by some growth in its US streaming business.
US operational revenues for the first quarter decreased 6 per cent to $574 million compared to the prior year quarter, with advertising falling by 7 per cent to $199 million because of shifts in the timing of the airing of original programming and lower delivery, partially offset by higher pricing and ad-supported streaming growth
Content licensing revenues fell by 54 per cent, contributing to a fall of 6 per cent in distribution revenues in the US to $375 million, but subscription revenues jumped by 14 per cent, driven by paid streaming services. Affiliate revenues fell as cord-cutting continued to take its toll.
International and other revenues fell by 3 per cent to $121 million, with Distribution and Other revenues decreased 6 per cent to $100 million primarily due to live venue closures and the timing of productions, and a decrease in distribution revenues at AMCNI.
Operating income in the US decreased by 4 per cent to $216 million on a reported basis, but adjusted operating income rose by 1 per cent to $243 million. The international arm moved from profit to operating loss, but adjusted operating income benefited from currency movements, jumping 32 per cent to $24 million.
“AMC Networks had solid performance in the first quarter and we are on course to meet our 2021 financial and streaming targets, including reaching at least 9 million paid subscribers by year end. The transition of the company to be the worldwide leader in targeted streaming on the strength of our focused, strong content continues on track,” said president and CEO Josh Sapan.