AMC Networks reported fourth quarter revenue of $599 million, down 12% from the same period last year, adjusting earnings per share of 72 cents to 64 cents.
Both numbers missed Wall Street revenue expectations.
In its domestic operations division, AMC Networks cited a decline in revenue growth in revenues, down 4% in the fourth quarter to $314 million, citing a decline in linear subscribers. He said it was offset. Streaming revenues rose 8% to $156 million due to year-over-year subscriber growth and price growth.
The company’s total streaming subscribers reached 12.4 million at the end of 2024. This has seen an increase in subscribers from AMC+, Acorn TV, Shudder, Sundance Now, AllBlk and Hidive from 11.4 million subscribers a year ago.
The AMC Network states, “Continued softness in the domestic linear market and continued softness across the international television broadcast market, leading to a decline in expected future cash flow and a decline in valuations, resulting in 200 million yen in domestic operating reporting units. I received a $68.7 million goodwill disability claim. Multiples.”
In total, the AMC network spent $399.5 million on impairment and other charges. This included $122 million and $29.2 million from the international division AMCNI, BBC America, acquired by the AMC Network in November.
In the fourth quarter, a decline in linear valuation and a “challenging entertainment advertising market partially offset by digital and advanced advertising revenue growth” led to a decline in advertising revenues down 12% to $139 million It’s become.
Additionally, the company reported an operating loss of $254 million. This included impairment and other charges of $303 million and other $43 million in fees and other related charges after an operating loss of $11.4 million during the operating period.
In 2025, the company said it expects to generate approximately $550 million in cumulative free cash flow by the end of 2025.
Total integrated revenue is expected to decline by 5% to approximately $2.3 billion. As part of that, the company expects its subscription revenue to remain flat in 2025 due to headwinds for Liner subscribers. Streaming growth is expected to grow in the low-to-middle teen percentage area, with executives citing “many price action,” but domestic advertising revenues for 2025 drop by 10% compared to 2025 It is expected.
The company’s cash spending was less than the 2024 guide, and AMC Networks guidance hinted at a greater decline in 2025, but AMC Executive Vice President and Chief Financial Officer Patrick O’Connell , the company has not pulled back programming, but has found a way to do it more “efficiently”. AMC Networks CEO Kristin Dolan said at shows such as The Walking Dead: Daryl Dixon that the company was able to film in Spain or France to get a tax credit. Other shows are filming in Canada and Ireland, she said.
Regarding programming next year, “a modest decline in volume is expected to be not dramatic.”
“This is wise on us alone. Each episode can produce a little better than expected. There are some amazing people who use all the tools available to produce efficiently. So we were the beneficiaries of it. We also have programs that share more content on channels, platforms, etc. But we are clearly committed to similar levels of cash programming spending in the future. I keep doing it,” O’Connell said.
“We are pleased and encouraged with results in Q4 and all 2024 results. We are year-round across all key financial metrics, including generating healthy free cash flow of $331 million. We have achieved guidance from
Dolan added: “The free cash flow performance so far has been strong, raising expectations for a cumulative free cash flow of approximately $550 million over the 25 years of two years. We are challenging all media companies. We have falsified and expanded innovative partnerships that will help us move forward during the period of change. Furthermore, we have raised our own targeted products as well as a range of partner platforms. We have continued to please our fans by offering unique shows and films with quality, expanding our target capabilities and distinguishing our advertising business.”
