AMC Networks reported its financial results for the third quarter ended September 30, 2022. Some of the operational highlights of this period were the expanded distribution of the AMC+ premium streaming service in Australia, New Zealand and Spain, and the expanded distribution partnership with Roku with the addition of 11 FAST channels.
Furthermore, “Anne Rice’s Interview with the Vampire” premiered in October and it was the biggest new series in AMC+ history and the number one new drama on ad-supported cable in 2022. Due to its success, the show has already been renewed for a second season. Meanwhile, the company is premiering “Anne Rice’s Mayfair Witches,” the next series in the Anne Rice Immortal Universe, on AMC+ and AMC on January 8, 2023.
Moreover, the group is developing three new series in The Walking Dead Universe: “The Walking Dead: Dead City,” featuring Maggie and Negan in a post-apocalyptic Manhattan; a Norman Reedus-led, Daryl Dixon series set in Paris; and the continuing journey of Rick and Michonne, led by Andrew Lincoln and Danai Gurira.
At the same time, the company revealed that streaming subscribers grew 44% from the prior year to 11.1 million subscribers as of September 30, 2022. Subscription revenues grew 8% due to increased streaming revenues primarily driven by streaming subscriber growth and contractual affiliate rate increases, partially offset by declines in the linear subscriber universe.
Net revenues decreased 16% from the prior year to US$682 million, which according to the firm was largely driven by the timing of content licensing revenues, lower affiliate and advertising revenues, and unfavorable foreign currency translation, partly offset by streaming revenue growth of 41%. Operating income decreased 20% from the prior year to US$151 million, and Adjusted Operating Income decreased 14% to US$194 million, which the company attributes to lower revenues, partly offset by lower content and marketing investments and strategic cost discipline, with a margin of 28%.
"Our strong content engagement is driving positive momentum throughout 2022. Our focus to transform to a consumer-focused multi-platform premium content company is taking hold with strong digital distribution growth. We have 11.1 million paid subscribers as of the end of the third quarter, representing 44% growth from the prior year and streaming revenue growth of 41%. Our ability to break through the competition with our highly-engaging content, as we further reconstitute our revenue mix, positions us well for long-term success and value creation," said Christina Spade, CEO of AMC Networks.
Our focus to transform to a consumer-focused multi-platform premium content company is taking hold with strong digital distribution growth.” Christina Spade CEO of AMC Networks