AMC Networks reported widespread declines in the first quarter, citing “continued revenue headwinds in our linear business” as results fell short of Wall Street expectations.
Total revenue fell 7% from the year-ago period, settling at $555.2 million, while adjusted earnings per share came in at 52 cents, less than half the amount in the 2024 quarter.
More from Deadline
-
Paramount Using Taylor Sheridan, 101 Studios Relationship As Model For Success Says Co-CEO
-
WWE & UFC Parent TKO Beats Q1 Forecasts And Ups Full-Year Guidance
The parent of cable networks AMC, IFC and WEtv and streaming services AMC+, Acorn TV and Shudder was expected by Wall Street analysts to post earnings of 81 cents and revenue of $567.2 million.
The company’s overall streaming subscriber count was 10.2 million at the end of the quarter, flat from the same period a year ago and down slightly from the 10.4 million in the previous quarter. AMC Networks has changed the way it tabulates streaming subscribers, opting not to include subscribers who come in via pay-TV or broadband bundles, like the Charter Spectrum agreement that took effect in March.
AMC Networks said its streaming revamp, and the resulting downturn in subscribers, reflects an ongoing focus on higher-quality customers, with retention and viewing hours per subscriber both improving. Down the line, the company intends to report on growth of packaged streaming, as it reflects the scope of overall distribution. AMC Networks CEO Kristin Dolan last month expressed a clear preference for wholesaling the company’s niche streaming outlets rather than selling them directly to consumers. Upholding the traditional pay-TV model in streaming, she said, lets distribution partners “do what they do best” as content owners focus on advertising, programming and marketing.
Advertising and affiliate revenue, the two bedrocks of traditional cable TV, both posted double-digit declines in the first quarter. Linear ratings declines caused advertising to drop 15% from a year ago to $119 million. The affiliate top line was off 12% to $156 million, which the company blamed mostly on basic subscriber declines but also on contractual rate decreases in connection with renewals.
Content licensing revenue decreased 13% to $54 million. The company attributed the drop to “the availability of deliveries in the period,” noting tough comparisons with the first quarter of 2024, when there was a boost from the sale of rights to Killing Eve.