NEW YORK - AMC Networks Inc. (NASDAQ:AMCX) today announced its financial results for the first quarter ended March 31, 2024, revealing a decline in earnings and revenue. AMCX shares were down 2.3% in premarket trading following the release.
The company reported an adjusted EPS of $1.16, falling short of the analyst estimate of $1.65. Revenue also decreased, coming in at $596.46 million against the consensus estimate of $601.73 million. This represents a 17% decline from the previous year's revenue of $717.45 million.
Chief Executive Officer Kristin Dolan commented on the quarter's outcome, highlighting the company's strategic focus and the impact of new technologies on media consumption. "In the first quarter, we continued to execute on our strategic priorities, including the ongoing delivery of healthy free cash flow," Dolan said. She also mentioned the company's efforts to adapt to consumer-driven changes in the industry and the strengthening of AMC Networks' balance sheet through financing transactions.
The first quarter saw a 6% decrease in net revenues when excluding nonrecurring revenues related to Silo and 25/7 Media. Streaming revenues, however, saw a modest increase of 3% from the prior year, driven by subscriber growth and price increases. The number of streaming subscribers rose to 11.5 million, a 2% increase from 11.2 million as of March 31, 2023.
Domestic Operations revenue decreased by 14%, with subscription revenues declining due to a drop in linear subscribers, partly offset by growth in streaming revenue. Advertising revenues also fell by 13% due to linear ratings declines and a challenging ad market, despite growth in digital and advanced advertising revenue. International revenues saw a 30% decrease, primarily due to the sale of the company's interest in 25/7 Media and the non-renewal of an AMCNI distribution agreement in the U.K.
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