AMC Networks Inc. Reports First Quarter 2025 Results

Core Viewpoint - AMC Networks Inc. reported a decline in financial performance for the first quarter of 2025, with significant decreases in net revenues, operating income, and earnings per share, while maintaining a focus on expanding its streaming services and content offerings [2][5][6]. Financial Highlights - Net revenues for Q1 2025 were $555.2 million, down 6.9$596.5 million in Q1 2024 [5]. - Operating income decreased by 41.7% to $64.2 million from$110.2 million year-over-year [5]. - Adjusted operating income fell 29.9% to $104.5 million compared to$149.1 million in the previous year [5]. - Diluted earnings per share (EPS) dropped 67.0% to $0.34 from$1.03, while adjusted EPS decreased 55.2% to $0.52 from$1.16 [5]. - Free cash flow was reported at $94.2 million, a decline of 34.7$144.1 million in Q1 2024 [5]. Operational Highlights - The company launched ad-supported AMC+ for Charter customers and expanded its FAST channels business [6]. - "Dark Winds" returned for its third season with approximately 2.2 million viewers on premiere night, leading to increased AMC+ subscriber acquisition [6]. - The Anne Rice Immortal Universe continues to gain momentum with new series launches and renewals [6]. - AMC Networks is enhancing its advertising opportunities, particularly in the horror genre, with the upcoming ad-supported launch of Shudder [6]. Segment Results - Domestic operations reported net revenues of $524.2 million, a decrease of 7.2$486.3 million in Q1 2024 [7]. - International segment revenues were $75.6 million, down 7.5$69.9 million year-over-year [8]. - Subscription revenues in domestic operations decreased by 3% to $313 million, while streaming revenues increased by 8$157 million [9]. Changes in Subscriber Reporting - The company updated its definition of "streaming subscribers" to include only those who register on an a la carte basis, resulting in a slight decline in reported subscribers to 10.2 million as of March 31, 2025, compared to 10.4 million at the end of 2024 [9][11]. Stock Repurchase Program - The Board of Directors authorized a stock repurchase program of up to $1.5 billion, with$135 million remaining for repurchase as of March 31, 2025 [18].