AMC Networks hit by falling linear sales as streaming subs edge upwards

Source: Alamy.com

AMC Networks was badly hit by falling linear revenues in the fourth quarter, despite a modest uplift in streaming numbers and revenue.

Advertising revenues dropped 23% to $158 million due to what the company described as anticipated linear ratings declines, the difficult ad market and fewer original programming episodes, partly offset by digital and advanced advertising revenue growth.

Content licensing revenues also decreased, in this case by 68% to $96 million due to the timing and availability of deliveries in the period.

Affiliate revenues declined 16% due to basic subscriber declines including the 4% revenue impact of a non-renewal at the end of 2022.

AMC Networks ended the quarter with 11.4 million streaming subscribers, up from 11.1 million at the end of September.

Streaming revenues increased 4% to $145 million. Streaming revenues for the full year increased 13% to $566 million with the impact of price increases adding to the uplift in sub numbers.

Total net revenues for the quarter were down 29.6% to US$679 million. The company posted adjusted operating income of US$100 million, down 27%.

AMC Networks operates a number of streaming services, including AMC+, Acorn TV, horror network Shudder and Sundance Now. Linear services offered by the company include the flagship AMC channel, BBC Studios JV BBC America, film channel IFC and SundanceTV.

“In the fourth quarter and across 2023, we continued to see success in the areas that will drive this company forward – programming, partnerships and profitability. I’m encouraged that this year we were able to grow streaming revenue and strengthen our subscriber base, expand our consolidated AOI margin to 25%, and meaningfully grow our free cash flow. Nearly a year since joining AMC Networks as CEO, I am proud of the progress we have made in a fast-changing environment, and the new and innovative ways we are engaging with viewers and our commercial and creative partners,” said AMC Networks CEO Kristin Dolan.