International Growth & Streaming Boom Help AMC Networks Grow Revenue & Profit
AMC Networks delivered increases in revenue and profit across its third quarter financials, helped by the growth of its international business and niche streaming services.
The company, which operates the eponymous network as well as BBC America, IFC, SundanceTV and WEtv, saw revenue increase by 3.1% to $719M and net income of $117M, up from $111M the year before.
On a diluted, per-share basis, earnings of $2.07 handily beat Wall Street estimates for $1.66. Revenue of $719 million, though, undershot the consensus forecast of $733.6 million.
Revenue from its global operations and streaming services increased 20.5% to $183M, while revenues at its domestic networks was broadly flat.
It particularly noted its success in streaming services, highlighting Acorn TV passing 1M subscribers and Shudder performing well with originals such as Creepshow. In the quarter, the company also announced an agreement with Charter Communications to launch AMC Networks’ full suite of SVOD services as well as AMC Premiere to Charter’s Spectrum customers and struck an international sales deal with Amazon Prime Video for the third series in The Walking Dead universe.
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However, in the U.S. advertising revenues fell 2.6% to $194M, the company blaming lower delivery of shows as well as the timing and mix of original programming, thought to include Better Call Saul partially offset by higher pricing.
CEO Josh Sapan said that AMC Networks was “well on its way” to transforming itself from a cable channels company to a “premier content company.”
“The underlying strategic priorities fueling our transformation have been and continue to be creating and owning great content and valuable IP, expanding our targeted direct-to-consumer services, maximizing the long-term value of our traditional linear business and diversifying our revenue by developing new avenues of content monetization,” he said.
Sapan also noted its “outsized presence” at this year’s Emmy Awards with Killing Eve.
“We are optimizing the value and reach of our content in a variety of ways and executing on a plan that will enable us to thrive in a very dynamic and competitive environment,” he added.
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