AMC Networks(AMCX) - 2025 Q3 - Quarterly Results

Financial Performance - AMC Networks reported net revenues of $561.7 million for Q3 2025, a decrease of 6.3% compared to $599.6 million in Q3 2024[5]. - Operating income fell by 40.7% to $55.5 million, down from $93.7 million in the same quarter last year[5]. - The company achieved free cash flow of $42 million in Q3 2025, down 22.1% from $53.9 million in Q3 2024[7]. - Net income attributable to AMC Networks' stockholders for Q3 2025 was $76.5 million, up 84.8% from $41.4 million in Q3 2024[29]. - Basic net income per share increased to $1.73 in Q3 2025, compared to $0.93 in Q3 2024[29]. - For the three months ended September 30, 2025, Adjusted Operating Income was $94,446,000, a decrease of 28.2% compared to $131,476,000 for the same period in 2024[39]. - Free Cash Flow for the three months ended September 30, 2025, was $41,996,000, down 22.1% from $53,941,000 in the same period of 2024[39]. - For the nine months ended September 30, 2025, Adjusted Operating Income was $308,317,000, a decrease of 29.0% from $433,407,000 in the same period of 2024[39]. - The net cash provided by operating activities for the nine months ended September 30, 2025, was $256,424,000, down 19.2% from $317,507,000 in 2024[39]. - Adjusted Results (Non-GAAP) for the nine months ended September 30, 2025, showed a net income of $78,678,000, with a diluted EPS of $1.39[46]. Revenue Breakdown - Streaming revenues increased by 14% to $174 million, offsetting declines in affiliate revenues, which decreased by 13% to $142 million[9]. - Domestic operations revenues decreased by 8% to $485.7 million, while international revenues increased by 4.7% to $77.1 million[9][11]. - Q3 2025 net revenues decreased to $561.7 million, down 6.3% from $599.6 million in Q3 2024[29]. Stock and Debt Management - The company has a remaining authorization of $125 million for its stock repurchase program as of September 30, 2025[15]. - The company issued $394.5 million in Senior Secured Notes due 2032 during the nine months ended September 30, 2025[30]. - As of September 30, 2025, AMC Networks' Net Leverage Ratio was approximately 4.33:1.00 and the Interest Coverage Ratio was approximately 2.20:1.00[36]. - The leverage ratio stood at 2.8x as of September 30, 2025, indicating a manageable level of debt relative to earnings[34]. Operational Changes and Agreements - The company renewed a long-term affiliate agreement with DirecTV, expanding its relationship to include streaming services[7]. - AMC Networks launched a triple bundle with Amazon Prime Video, offering significant savings on combined subscriptions[7]. - The company incurred restructuring and other related charges of $12,797,000 for the nine months ended September 30, 2025[46]. Asset and Liability Management - Cash and cash equivalents at the end of Q3 2025 were $716.8 million, down from $784.6 million at the end of 2024[32]. - Total assets decreased to $4.21 billion as of September 30, 2025, from $4.36 billion at the end of 2024[32]. - Total liabilities reduced to $3.07 billion as of September 30, 2025, compared to $3.42 billion at the end of 2024[32]. Earnings Per Share - Diluted earnings per share (EPS) rose to $1.38, an increase of 81.6% from $0.76 in the prior year[5]. - Adjusted EPS decreased by 80.2% to $0.18, compared to $0.91 in Q3 2024[5].