AMC Networks Reports Downturn In Many Financial Areas, But Stock Perks Up On Q3 Beat

Core Insights - AMC Networks' shares increased by 3% after reporting third-quarter results that exceeded Wall Street expectations despite a 50% decline in 2024 to date [1][2] - Revenue for the quarter ending September 30 was $599.6 million, a 6% decrease compared to the previous year, while adjusted earnings per share fell to 91 cents from $1.85 [1][3] Revenue Breakdown - Streaming subscriber growth was a positive highlight, with a 5% increase resulting in a total of 11.8 million subscribers across services like AcornTV, Shudder, and AMC+ [3] - Streaming revenue rose by 5% to $152 million, although overall subscription revenue declined by 5% due to losses in linear subscriptions [3] Advertising and Affiliate Revenue - Both affiliate and advertising revenues experienced double-digit declines, with affiliate revenue down 13% to $164 million and advertising revenue falling 10% to $133 million [4] - The decline in advertising revenue was attributed to lower linear ratings and a challenging advertising market, although growth in digital and advanced advertising revenue was noted as a positive offset [4] Strategic Focus and Cash Flow - CEO Kristen Dolan emphasized the company's focus on programming, partnerships, and profitability, stating significant advancements in these areas during the quarter [5] - AMC Networks generated $293 million in free cash flow in 2024 and is on track to achieve a goal of approximately $500 million in cumulative free cash flow over two years [5]