AMC Networks cuts content spend
February 20, 2023
AMC Networks, the US entertainment company behind The Walking Dead franchise, has reported financial results for the fourth quarter and full year ended December 31st 2022, and announced a 20 per cent cut on content spend for 2023.
AMC Networks Interim Executive Chairman, James L. Dolan, said: “AMC Networks is focused on maximising the value of our high-quality, popular content through optimised content monetisation as we reduce costs and drive cash flow. We believe this approach will position the company well to navigate current industry dynamics and enable us to generate long-term shareholder value.”
Operational Highlights:
- Launched new Anne Rice Universe franchise with Anne Rice’s Interview with the Vampire, which became the #1 new series launch in AMC+ history and the #2 new basic cable drama in 2022.
- Kicked off 2023 with the second series in the franchise, Anne Rice’s Mayfair Witches, which is pacing to become the most viewed single season of any show on AMC+, topping Interview’s performance, and is a Top 10 cable drama in the current broadcast season.
- Renewed both Anne Rice’s Interview with the Vampire and Anne Rice’s Mayfair Witches for second seasons.
- Premiered the final season of The Walking Dead, which concluded with AMC+’s highest single day of viewership ever and which commanded the series’ highest pricing in its 11-year run.
- Bringing fans of The Walking Dead Universe a new season of Fear the Walking Dead and two new series: The Walking Dead: Dead City and The Walking Dead: Daryl Dixon, in 2023.
- Renewed WE tv franchise hits Love After Lockup, Life After Lockup, Love During Lockup and Growing Up Hip Hop for new seasons.
- Renewed six multi-year carriage agreements, with Charter, Altice, Philo, Mediacom and WOW! for continued carriage of US channel portfolio and with Bell for continued carriage of AMC in Canada.
- Tested new pricing and packaging offer with Verizon’s +play Early Access, where Verizon mobile and 5G Home customers were offered 12 months of Netflix Premium for free with the purchase of a 12-month subscription to AMC+.
Fourth Quarter Financial Highlights:
- Net revenues increased 20 per cent from the prior year to $965 million (€903.6m)
- Operating loss of $392 million; Adjusted Operating Income increased 34 per cent to $137 million
- Diluted EPS of $(6.11); Adjusted EPS of $2.52
- Net cash provided by operating activities of $145 million; Free Cash Flow of $128 million
Full Year Financial Highlights:
- Net revenues increased 1 per cent from the prior year to $3,097 million
- Streaming revenues increased 35 per cent to $502 million, with 11.8 million subscribers as of December 31st 2022
- Operating income of $87 million; Adjusted Operating Income of $738 million
- Diluted EPS of $0.17; Adjusted EPS of $9.21
- Net cash provided by operating activities of $182 million; Free Cash Flow of $103 million