AMC Networks(AMCX) - 2025 Q1 - Quarterly Results

Financial Performance - Net revenues for the first quarter of 2025 were $555.2 million, a decrease of 6.9% compared to $596.5 million in the same period of 2024[4] - Operating income fell to $64.2 million, down 41.7% from $110.2 million year-over-year[4] - Adjusted operating income was $104.5 million, representing a 29.9% decline from $149.1 million in the prior year[4] - Diluted earnings per share (EPS) decreased by 67.0% to $0.34, while adjusted EPS fell 55.2% to $0.52[4] - Free cash flow for the quarter was $94.2 million, down 34.7% from $144.1 million in Q1 2024[4] - Net income attributable to AMC Networks' stockholders was $18,049, a decline of 60.6% from $45,803 in Q1 2024[30] - Basic net income per share decreased to $0.40, down from $1.04 in the prior year[30] - For the three months ended March 31, 2025, the company reported a net income of $(15.336) million, resulting in a diluted EPS of $0.34[43] - Adjusted results for the same period showed an increase in net income to $29.224 million, with an adjusted diluted EPS of $0.52[43] - In comparison, for the three months ended March 31, 2024, the company reported a net income of $(23.649) million, with a diluted EPS of $1.03[44] - The adjusted results for Q1 2024 indicated a net income of $51.524 million, leading to an adjusted diluted EPS of $1.16[44] Revenue Breakdown - Streaming revenues increased by 8% to $157 million, while domestic operations revenues decreased by 7% to $486.3 million[5][8] - International revenues decreased by 7.5% to $69.9 million, with subscription revenues down 12% to $45 million due to a non-renewed distribution agreement in Spain[7][9] Cash Flow and Debt - Free cash flow for Q1 2025 was $94,185, compared to $144,149 in Q1 2024, reflecting a decrease of 34.7%[39] - Cash and cash equivalents increased to $870,229, up from $784,649 at the end of 2024[33] - Total debt as of March 31, 2025, was $2,361,260, with net debt at $1,491,031[35] - The company reported a leverage ratio of 2.9x as of March 31, 2025[35] - AMC Networks is in compliance with all financial covenants under its credit facility as of March 31, 2025[37] Restructuring and Costs - Restructuring initiatives included cash payments of $5.4 million for severance and employee-related costs for Q1 2025, compared to $3.5 million in Q1 2024[40] - The company incurred $0.4 million in content impairments and other exit costs for Q1 2025, while it was $1.3 million for Q1 2024[40] - Amortization of acquisition-related intangible assets for Q1 2025 was $7.795 million, down from $8.556 million in Q1 2024[43][44] - The company is focusing on restructuring and other related charges, which amounted to $4.790 million in Q1 2025[43] Strategic Initiatives - The company launched ad-supported AMC+ for Spectrum TV Select customers and expanded its FAST channels business with a new channel, Acorn TV Mysteries[5]