AMC Networks reported financial results for the first quarter ended March 31, 2023. During the period, the company lost 300.000 subscribers across its streaming services – AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and HIDIVE –, falling from 11.8 million at the end of 2022 to 11.5 million.
This drop in subscribers comes after a slight increase of 700.000 paid streaming customers between Q3 and Q4 of last year. Despite the loss in subscribers, AMC Networks still managed to beat estimates for the quarter in terms of both revenue and earnings expectations: Wall Street had forecast earnings per share of US$1.87 on US$696.7 million in revenue, but AMC Networks reported adjusted EPS of US$2.62 on US$717 million in revenue.
The company’s net revenues increased 1% from the prior year to US$717 million, largely driven by increased distribution and other revenues partly offset by lower advertising revenues. Operating income decreased 1% from the prior year to US$173 million, and Adjusted Operating Income increased 2% to US$216 million, representing a margin of 30%.
During this period, AMC Networks announced plans to launch an ad-supported version of its streaming service AMC+ later this year. Furthermore, the company unveiled Audience+, a powerful new insights and data targeting platform that allows advertising partners to identify and reach viewers across ad-supported distribution platforms.
"AMC Networks has always been known for great content that breaks through in popular culture, receives critical acclaim and engages fans. In an environment of shifting consumption, we are committed to making our content available across the entire distribution ecosystem,” commented Kristin Dolan, Chief Executive Officer of AMC Networks.
“While we reevaluate the pathways to content monetization, we are strategically reducing costs and streamlining our organization. These efforts contributed to a first quarter with strong margins and increased streaming revenue as we prioritized higher-value subscribers for our streaming portfolio. We remain focused on the overall profitability of the company as we continue to maintain a strong balance sheet, drive free cash flow and maximize shareholder value," Dolan added.
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