AMC Networks reported lower third-quarter earnings as a drop in traditional distribution and ad revenue more than offset streaming gains.
Net income dropped to $84.7 million, or $1.96 a share, from $110.7 million, or $2.55 a share a year ago.
Net revenue fell 16% to $681.8 million. Streaming revenue was up 41%, as subscribers to the company’s streaming services grew to 11.1 million from 10.8 million at the end of the second quarter. On the company's earnings call, CEO Christina Spade said AMC expects to have 12 million subscriber by the end of the year.
AMC has said it aims to have 20 million to 25 million subscribers by 2025.
Operating income from AMC’s domestic operations was down 12.5% to $186.6 million as revenues dropped 14% to $587.4 million.
Distribution revenue fell 16% to $407 million.
Advertising revenue dropped 10% to $180 million. The company blamed lower linear ratings, softer scatter and direct response markets and fewer hours of original quarter.
For the full year, the company is looking a revenue being flat to up lower single digits because of ad market weakness and overall macro economic conditions.
"Our strong content engagement is driving positive momentum throughout 2022. Our focus to transform to a consumer-focused multiplatform premium content company is taking hold with strong digital distribution growth,” Spade said.
“We have 11.1 million paid subscribers as of the end of the third quarter, representing 44% growth from the prior year and streaming revenue growth of 41%,” Spade said. “Our ability to break through the competition with our highly engaging content, as we further reconstitute our revenue mix, positions us well for long-term success and value.” ■
