AMC Networks undershot Wall Street forecasts in the fourth quarter, with advertising continuing to decline in the U.S. and affiliate revenue also hitting a slump.
The company reported total revenue of $599 million, down 12% from the same period a year ago, and adjusted earnings per share of 64 cents declined from 72 cents.
Wall Street analysts’ consensus outlook was for earnings of $1.05 per share and revenue of $611.3 million.
In its domestic operations unit, AMC Networks said subscription revenue fell 4% to $314 million, with the company citing declines in linear subscribers, partially offset by streaming revenue growth.
Affiliate revenue declined 13%, which the company blamed on basic subscriber declines and contractual rate decreases in connection with renewals. Advertising revenue sagged 12% to $139 million due to linear ratings declines and what the earnings release called “a challenging entertainment advertising marketplace.” Digital and advanced advertising revenue growth partially offset the overall downturn.
The company’s portfolio of niche streaming services, including Shudder, AMC+ and AcornTV, finished 2024 up 8% over 2023 at 12.4 million subscribers. Previously, the company had projected it would reach 20 million to 25 million subscribers by 2025 but it has revised that guidance in recent quarters.
“We achieved our full-year guidance across all key financial metrics, including generating healthy free cash flow of $331 million,” CEO Kristin Dolan said in the earnings release. “We forged and expanded innovative partnerships that are helping to drive our company forward amidst a period of change that is challenging all media companies.”
Dolan said the company is increasing its internal forecast for cumulative free cash flow to $550 million for 2024 and 2025 combined.
