AMC Networks Inc (AMCX, Financial) released its financial results for the third quarter ended September 30, 2023, on November 3, 2023. The company reported a decrease in net revenues by 7% from the prior year, largely driven by lower domestic advertising revenues and affiliate revenues. However, this was partly offset by a 9% increase in streaming revenue growth, primarily driven by year-over-year streaming subscriber growth and the company's continued focus on higher value subscribers.
Financial Highlights
AMC Networks Inc (AMCX, Financial) reported net cash provided by operating activities of $106 million and Free Cash Flow of $99 million, reflecting expense savings and improved working capital management. Operating income was reported at $121 million, while Adjusted Operating Income decreased by 9% from the prior year, standing at $177 million. The Adjusted Operating Income margin of 28% was consistent with the prior year period.
The company's net revenues of $637 million decreased by 7% from the prior year, largely driven by lower domestic advertising revenues and affiliate revenues. However, this was partly offset by streaming revenue growth. Streaming revenues of $142 million increased by 9% from the prior year, primarily driven by year-over-year streaming subscriber growth and the company's continued focus on higher value subscribers. The company's Diluted EPS stood at $1.44, with Adjusted EPS at $1.85.
Operational Highlights
During the quarter, AMC Networks launched an ad-supported version of AMC+, bringing ads to the Company’s entire distribution ecosystem and enhancing future bundling opportunities. The company also enabled programmatic ad buying on linear networks, a major industry first that boosts the value and relevance of linear advertising. The company also worked with Warner Bros. Discovery to add seven of AMC Networks’ high-quality series to the Max platform as a limited promotional pop-up at no additional cost to Max subscribers.
The company also completed a multi-year renewal with recently-merged Rogers-Shaw, the largest cable provider in Canada, for continued carriage of AMC. The Walking Dead: Daryl Dixon was the biggest ever debut for AMC+, one of many programming highlights in the quarter.
Future Outlook
AMC Networks Inc (AMCX, Financial) remains focused on responsible content investment and monetization across a wide array of distribution platforms and licensing opportunities. The company is well-positioned to achieve its free cash flow goals for the year and continues to execute on its plan with a focus on high-quality programming, strong partnerships, and profitability.
Explore the complete 8-K earnings release (here) from AMC Networks Inc for further details.
