AMC Networks sees Q2 losses despite streaming gains
August 9, 2024
AMC Networks has reported financial results for the second quarter ended June 30th.
The company saw a $29.2 million (€26.7m) net loss compared to net income of $70.2 million in the same period last year. The results included a $68 million impairment charge against AMC’s international operations and $29 million against BBC America – its joint venture with BBC Studios. Total revenues fell 7.8 per cent to $625.9 million.
Domestic highlights
Domestic Operations revenues decreased 7 per cent from the prior year to $538 million.
Subscription revenues decreased 3 per cent to $323 million, primarily due to declines in the linear subscriber universe, partially offset by an increase in streaming revenues.
Streaming revenues increased 9 per cent to $150 million driven by year-over-year subscriber growth and price increases. Streaming subscribers increased 5 per cent to 11.6 million as compared to 11 million subscribers as of June 30th 2023.
Content licensing revenues decreased 18 per cent to $67 million due to the availability of deliveries in the period. The prior period included $20 million of revenues related to the return of rights from Hulu that resulted in the acceleration of revenue previously anticipated to be recognised in 2024. Excluding prior period revenues associated with the return of rights from Hulu, content licensing revenues increased 10 per cent.
Advertising revenues decreased 11 per cent to $149 million due to linear ratings declines, partly offset by digital and advanced advertising revenue growth.
International highlights
International revenues decreased 9per cet from the prior year to $90 million. The prior period included $19 million of content licensing and other revenues related to 25/7 Media, which it divested in December 2023. Additionally, current period advertising revenue included $13 million of revenue related to a one-time adjustment payment. Excluding revenues related to 25/7 Media and the one-time adjustment payment, International revenues decreased 4 per cent.
Subscription revenues decreased 13per cent to $50 million, primarily due to the non-renewal of an AMCNI distribution agreement in the UK that occurred in the fourth quarter of 2023.
Content licensing and other revenues decreased 86% to $3 million due to aforementioned sale of its interest in 25/7 Media in December 2023.
Advertising revenues increased 84 per cent to $38 million due to a $13 million one-time adjustment payment and new streaming offerings in the UK. Excluding the one-time adjustment payment, advertising revenues increased 18 per cent.
Chief Executive Officer, Kristin Dolan, commented: “AMC Networks continues to find strength and opportunity in a strategic plan built around programming, partnerships and profitability. Key to our plan is the creation and curation of celebrated series and films, and making them available to audiences everywhere, including through an exciting new branded content licensing agreement with Netflix. In the first half of 2024, we’ve made significant progress against our strategic priority of generating strong free cash flow, and we’re well on our way to achieving our free cash flow guidance for the full year.”