In This Article:
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Free Cash Flow: $94 million in the first quarter.
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Consolidated Net Revenue: Declined 7% year over year to $555 million.
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Consolidated AOI: Declined 30% to $104 million with a 19% margin.
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Adjusted EPS: $0.52.
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Domestic Operations Revenue: Decreased 7% to $486 million.
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Subscription Revenue: Decreased 3% due to a 12% decline in affiliate revenue, offset by 8% streaming revenue growth.
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Streaming Subscribers: Ended the quarter with 10.2 million, flat compared to the prior year.
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Advertising Revenue: Decreased 15% year over year.
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Content Licensing Revenue: $54 million for the quarter.
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International Revenue: Decreased 7% to $70 million.
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Net Debt: $1.5 billion with a consolidated net leverage ratio of 2.9 times.
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2025 Outlook: Free cash flow of approximately $220 million, consolidated revenue of approximately $2.3 billion, and consolidated AOI in the range of $400 million to $420 million.
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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AMC Networks Inc (NASDAQ:AMCX) generated $94 million in free cash flow in the first quarter, indicating a strong start towards their goal of $220 million for the year.
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The company launched an ad-supported version of AMC+ with Charter, expanding access and flexibility for subscribers.
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AMC Networks Inc (NASDAQ:AMCX) is seeing strong interest in its new AMCN outcomes attribution product, enhancing advertising capabilities.
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The series 'Dark Winds' returned for a third season with a premiere night audience of approximately 2.2 million viewers and a 100% score on Rotten Tomatoes.
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AMC Networks Inc (NASDAQ:AMCX) is expanding its content offerings with new series and franchises, including 'Talamasca: The Secret Order' and 'Great American Stories'.
Negative Points
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Consolidated net revenue declined 7% year over year to $555 million, with a 30% decline in consolidated AOI.
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Domestic operations revenue decreased 7%, with a 12% decline in affiliate revenue impacting subscription revenue.
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Advertising revenue decreased 15% year over year, primarily due to lower linear ratings.
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International revenue decreased 7%, with subscription revenue down 12% due to the non-renewal with Movistar in Spain.
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Streaming subscribers declined slightly from 10.4 million at the end of 2024 to 10.2 million, reflecting a focus on higher quality subscribers.
Q & A Highlights
Q: Can you tell us more about the streaming subscribers coming in through bundled video packages and any risk of cannibalization on the a-la-carte side? A: Kristin Dolan, CEO, explained that AMC Networks is pleased with the integration with Charter and Philo, tracking as expected. Patrick O'Connell, CFO, added that AMC Networks is taking a partner approach to distribution, which they believe will create a healthier video ecosystem and present additional revenue opportunities through upselling and increased engagement.