AMC Networks has reported Q1 net revenues of $596 million (€552.3m), down 17 per cent from the prior year. Excluding nonrecurring revenues related to Apple TV+ series Silo and the sale of digital agency 25/7 Media, net revenues decreased 6 per cent. Streaming revenues stood at $145 million, an increase of 3 per cent on the prior year.

Chief Executive Officer, Kristin Dolan, commented: “In the first quarter, we continued to execute on our strategic priorities, including the ongoing delivery of healthy free cash flow. 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.”

Domestic Operations – Q1 highlights

• Domestic Operations revenues decreased 14 per cent from the prior year to $524 million. The prior period included $56 million of content licensing and other revenues related to Silo. Excluding revenues related to Silo, Domestic Operations revenues decreased 6 per cent.
• Subscription revenues decreased 7 per cent to $323 million due to declines in the linear subscriber universe, partially offset by streaming revenue growth.
• Streaming revenues increased 3 per cent to $145 million, primarily driven by year-over-year subscriber growth and price increases.
• Streaming subscribers increased 2 per cent to 11.5 million as compared to 11.2 million subscribers as of March 31st 2023.
• Affiliate revenues decreased 14 per cent, primarily due to basic subscriber declines.
• Advertising revenues decreased 13 per cent to $140 million due to linear ratings declines and a challenging ad market, partly offset by digital and advanced advertising revenue growth.
• Content licensing revenues decreased 40 per cent to $62 million due to the availability of deliveries in the period. The prior period included deliveries of Silo, an AMC Studios produced series for Apple TV+. Excluding revenues related to Silo, content licensing revenues increased 31 per cent.

International – Q1 highlights

• International revenues decreased 30 per cent from the prior year to $76 million. The prior period included $30 million of content licensing and other revenues related to 25/7 Media, which was divested on December 29th 2023. Excluding revenues related to 25/7 Media, International revenues decreased 3 per cent.Distribution and other revenues decreased 40 per cent to $54 million, primarily due to the sale of our interest in 25/7 Media in December 2023 and, to a lesser extent, due to the non-renewal of an AMCNI distribution agreement in the UK in Q4 2023.
• Subscription revenues decreased 10 per cent to $51 million, primarily due to the non-renewal of an AMCNI distribution agreement in the UK that occurred in Q4 2023.
• Content licensing and other revenues decreased 90 per cent to $3 million due to the sale of our interest in 25/7 Media in December 2023.
• Advertising revenues increased 16 per cent to $22 million due to increased ratings and growth across Central and Northern Europe advertising markets, as well as digital and advanced advertising growth in the UK.
• Operating income decreased 39 per cent to $9 million.

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Tags: AMC, AMC Networks