AMC Networks(US:AMCX)2024-11-08 21:01Revenue Performance - Domestic Operations revenue for Q3 2024 was $530.2 million, a decrease of 2.0% from $541.2 million in Q3 2023[96]. - International revenue for Q3 2024 was $73.7 million, down 24.4% from $97.6 million in Q3 2023[96]. - Total consolidated revenue for the nine months ended September 30, 2024, was $1.82 billion, a decline of 10.4% compared to $2.03 billion for the same period in 2023[96]. - Total revenues for the three months ended September 30, 2024 were $530.2 million, down 2.0% from $541.2 million in the same period of 2023[129]. - Total net revenues decreased by 24.5% to $73.7 million for Q3 2024 and by 21.5% to $239.4 million for the nine months ended September 30, 2024[137]. Operating Income - Operating income for Domestic Operations in Q3 2024 was $130.0 million, a decrease of 19.5% from $161.6 million in Q3 2023[96]. - The company reported a total operating income of $93.7 million for Q3 2024, compared to $120.9 million in Q3 2023, reflecting a decrease of 22.5%[96]. - Operating income for the nine months ended September 30, 2024, decreased by 46.3% to $214,619,000 from $399,855,000 in the same period of 2023[109]. - Segment adjusted operating income for the three months ended September 30, 2024 was $150.2 million, down 18.8% from $185.0 million in the same period of 2023[129]. - Adjusted operating income for the nine months ended September 30, 2024, was $433,407,000, down from $569,808,000 in 2023, indicating a decline of about 24%[170]. Subscription and Advertising Revenue - Subscription revenue remains the largest component of distribution revenue, primarily based on affiliation agreements with distributors[100]. - For the nine months ended September 30, 2024, subscription revenues decreased by 6.2% to $1,110,099,000 compared to $1,183,562,000 in the same period of 2023[109]. - Subscription revenues decreased by 4.9% to $316.0 million for the three months ended September 30, 2024, primarily due to a 13.5% decline in affiliate revenues[130]. - Subscription revenues decreased by 13.6% to $48.5 million for Q3 2024 compared to Q3 2023, and by 12.4% to $149.0 million for the nine months ended September 30, 2024[137]. - Advertising revenues decreased by 11.2% in the Domestic Operations business for the nine months ended September 30, 2024, primarily due to linear ratings declines[111]. - Advertising revenues increased by 16.5% to $22.5 million for Q3 2024 and by 40.1% to $81.5 million for the nine months ended September 30, 2024, driven by digital advertising growth in the U.K. and improved ratings in Central and Northern Europe[137]. Expenses - Technical and operating expenses (excluding depreciation and amortization) decreased by 10.0% to $840,049,000 for the nine months ended September 30, 2024, compared to $933,590,000 in 2023[109]. - Selling, general and administrative expenses increased by 3.8% to $588,679,000 for the nine months ended September 30, 2024, compared to $567,136,000 in 2023[109]. - Technical and operating expenses (excluding depreciation and amortization) increased by 7.3% to $254.0 million for the three months ended September 30, 2024[132]. - Selling, general and administrative expenses increased by 4.0% to $128.3 million for the three months ended September 30, 2024, primarily due to higher employee-related costs[134]. - Selling, general and administrative expenses decreased by 18.3% to $26.5 million for Q3 2024 and by 6.9% to $82.8 million for the nine months ended September 30, 2024[140]. Net Income - Net income attributable to AMC Networks' stockholders decreased by 75.6% to $57,951,000 for the nine months ended September 30, 2024, down from $237,273,000 in 2023[109]. - The company’s net income for the nine months ended September 30, 2024, was $57.9 million, down from $237.3 million in 2023[162]. Cash Flow and Debt - Net cash provided by operating activities for the nine months ended September 30, 2024, was $317.5 million, a significant increase from $131.1 million in 2023, reflecting a growth of 142.2%[150]. - Free cash flow for the nine months ended September 30, 2024, was $293.3 million, up from $102.7 million in 2023, indicating an increase of 185.5%[155]. - Net cash used in financing activities decreased to $52.7 million in 2024 from $84.9 million in 2023, a reduction of 38%[152]. - As of September 30, 2024, the company had $2.4 billion in outstanding debt, with approximately 84% of it being fixed-rate debt[173]. - The carrying value of the company's fixed-rate debt was $1.98 billion, exceeding its fair value of $1.74 billion by $236.5 million as of September 30, 2024[172]. Impairments and Charges - An impairment charge of $68.0 million was recognized in the second quarter of 2024 due to a decline in the fair value of the AMCNI reporting unit[116]. - Impairment and other charges for the nine months ended September 30, 2024, amounted to $96,819,000, significantly higher than $30,282,000 in 2023, reflecting an increase of about 220%[170]. Acquisitions and Divestitures - The company divested its 25/7 Media business on December 29, 2023, leading to a reclassification of its operating segments[99]. - AMC Networks acquired the remaining 50.1% of BBC America for $42 million, now owning 100% of the business[148].