AMC Networks Inc. Reports Second Quarter 2024 Results

Core Insights - AMC Networks reported a strategic focus on programming, partnerships, and profitability, highlighting a new licensing agreement with Netflix and progress towards free cash flow goals for 2024 [1][2]. Operational Highlights - Expanded partnership with Netflix to curate 15 AMC branded shows, launching on August 19, 2024 [2]. - New licensing agreement with Sky for The Walking Dead Universe in the UK [2]. - Participation in innovative streaming bundles, including AMC networks in Optimum's new Entertainment TV package [2]. - Price increases for Acorn TV and HIDIVE with minimal impact on subscriber churn [2]. - Launched AMC Reality on ITVX and greenlit a new series in the Anne Rice Immortal Universe [2]. Financial Highlights - Net cash from operating activities was $104 million, with free cash flow of $95 million [3]. - Operating income was $11 million, impacted by $97 million in impairment and other charges; adjusted operating income was $153 million with a margin of 24% [3][4]. - Net revenues decreased by 8% to $626 million; streaming revenues increased by 9% to $150 million [3][4]. - Diluted EPS was $(0.66), while adjusted EPS was $1.24 [3][4]. Segment Results Domestic Operations - Revenues decreased by 7% to $538 million; subscription revenues fell by 3% to $323 million [7]. - Streaming revenues increased by 9% to $150 million, with subscribers growing by 5% to 11.6 million [7]. - Advertising revenues decreased by 11% to $149 million due to linear ratings declines [7]. International Operations - Revenues decreased by 9% to $90 million; subscription revenues fell by 13% to $50 million [9]. - Advertising revenues increased by 84% to $38 million, aided by a one-time adjustment payment [9]. Other Financial Matters - The company repurchased $15 million of its senior notes at a discount [10]. - Issued $143.75 million in convertible senior notes due 2029 [10]. - Recognized impairment charges of $97 million, primarily due to a $68 million goodwill impairment at AMCNI [10][11].