AMC Networks Misses Estimates, Shares Drop Over 6% as Wall Street Reacts
Missing analyst projections, AMC Networks (AMC, Financials) reported a 10.7% drop in full-year revenue to $2.42 billion. Versus a $388 million profit in 2023, the corporation had a $40 million operating loss for the year as profits suffered from impairment charges and restructuring expenditures. The business reported an operational loss of $254 million, including $302 million in impairment charges; fourth-quarter income dropped 11.7% year-over-year to $599 million.
Warning! GuruFocus has detected 3 Warning Signs with AMC.
Missing forecasts, fourth-quarter adjusted profits per share came in at $0.64. Wall Street responded adversely; AMC Networks's shares dropped 6.55% to $9.20 Friday at 12:46 p.m. ET. With linear TV customers losing 5% and domestic revenue falling 8.8% to $2.11 billion, the drop indicates investor worries about the company's continuous challenges in conventional TV. Contract expirations and sales of 25/7 Media caused international revenue to plummet 19.6% to $325 million. The UK market helped advertising income drop 11% in the United States but rise 41% elsewhere.
Along with growing its Free Ad-Supported Streaming TV business to 19 brands across 12 platforms, AMC Networks extended key affiliate relationships with Charter, Cox, Verizon, and Cable One. With subscribers rising 8% to 12.4 million, streaming income climbed 7% to $603 million. Launching AMCN Outcomes, a data-driven advertising offering, the business presented its 2025 content slate featuring Nautilus, The Walking Dead: Daryl Dixon, and Anne Rice's The Talamasca.
For domestic operations, the corporation recognized $268.7 million in goodwill impairments; overseas, it recorded $102 million. Restructuring expenses came to $49 million, mostly for cutbacks in programming at BBC America and We TV. With $135 million still allowed, AMC Networks did not buy shares in 2024.
The business keeps emphasizing cost-cutting and streaming investments and boosted its free cash flow forecast for 20242025 to $550 million. But the less than anticipated outcomes and continuous difficulties with conventional television have made investors wary about its long-term development possibilities.
This article first appeared on GuruFocus.
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