AMC Networks Stock Crashes After Q4 Revenue Dip, Marginal Subs Increase

AMC Networks Inc AMCX reported a fourth-quarter 2023 revenue decline of 29.6% Y/Y to $678.85 million, beating the consensus of $676.01 million.

The American entertainment company’s adjusted EPS of $0.72 fell 71.4% Y/Y and missed the consensus of $0.89. 

Affiliate revenue decreased 16% due to basic subscriber declines, including the 4% revenue impact of a strategic non-renewal that occurred at the end of 2022.

Advertising revenues decreased 23% Y/Y to $158 million due to anticipated linear ratings declines.

Despite these setbacks, AMC Networks reported that streaming subscribers increased 1% to 11.4 million. Compared to third-quarter 2023 subscribers of 11.1 million, fourth-quarter subscribers sequentially increased 3%.

Streaming revenues of $145 million increased 4%, primarily driven by year-over-year streaming subscriber growth.

Adjusted operating income decreased 27% to $100.3 million, with free cash flow at $65.97 million.

AMC Networks Chief Executive Officer Kristin Dolan said: “I’m encouraged that this year we were able to grow streaming revenue and strengthen our subscriber base, expand our consolidated AOI margin to 25%, and meaningfully grow our free cash flow.”

Price Action: AMCX shares are down 20.30% at $13.59 on the last check Friday.