AMC Networks reported its third-quarter 2023 earnings Friday, revealing it had added 100,000 subscribers across AMC+ and its other niche streamers in Q3, following two straight quarters of declining subs.
Streaming subscribers stand at 11.1 million as of Sept. 30, up 1% from where they ended at 11 million at the conclusion of Q2 in June.
Meanwhile, U.S. ad sales were down 18% for the company.
AMC Networks lost 300,000 subscribers across its streaming services in Q1, falling from 11.8 million at the end of 2022 to 11.5 million by March 31. In Q2, that decline continued with streaming subs down to 11 million at the end of June.
In August, AMC Networks reported that, due to an update in subscriber definition, which no longer includes estimated subscriber conversions, streaming subscribers actually totaled 11.2 million at the end of Q1.
Domestic operations revenue fell 8% from Q3 2022. Content licensing increased 7% and subscription revenue was down 5%. Streaming revenue rose 9% and affiliate sales dropped 13%. U.S. ad sales were down the above-mentioned 18%.
Turning to AMC Networks’ “International and Other” segment — which includes AMC Networks International (its international programming business) and 25/7 Media (its production services business) — revenue fell 2%. Distribution and “other” revenues were down 4% and ad sales increased 11%.
Wall Street forecast earnings per share (EPS) of $1.28 on $657.8 million in revenue, according to analyst consensus data provided by Refinitiv. AMC Networks reported adjusted EPS of $1.85 (diluted EPS of $1.44) on $637 million in revenue.
Operating income decreased 20% from the previous Q3 to $121 million for the quarter, with free cash flow at $99.2 million.
“During this period of experimentation and change in our industry, we continue to execute on our plan and effectively manage the business with a focus on high-quality programming, strong partnerships and profitability. In addition to introducing an ad-supported version of AMC+, we extended our leadership in TV advertising through the launch of programmatic buying on our linear networks, an industry first,” AMC Networks CEO Kristin Dolan said in a letter to shareholders. “Partnership examples included a promotional pop-up on Max and strong presence on the new Xumo offering from Comcast and Charter. ‘The Walking Dead: Daryl Dixon’ was the biggest ever debut for AMC+, one of many programming highlights in the quarter. We are well-positioned to achieve our free cash flow goals for the year and remain focused on responsible content investment and monetization across a wide array of distribution platforms and licensing opportunities.”
AMC Networks stock closed Thursday at $13.18 per share. The regular U.S. stock markets will reopen Friday at 9:30 a.m. ET.
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Dolan and other AMC Networks executives will host a conference call at 8:30 a.m. ET to discuss the quarter in greater detail.
