AMC Networks reported higher first-quarter earnings despite spending more on programming and marketing to push its streaming services.
Net income rose 19% to $104.2 million, or $2.38 a share, from $87 million, or $2.08 a share a year ago.
Revenue rose 3% to $712 million.
AMC said it had 9.5 million streaming subscribers as of the end of the quarter, up from 9 million at the end of 2021, with AMC Plus getting boost from the final season of Better Call Saul. The company said it remained on track to hit its goal of between 20 million and 25 million streaming subscribers by 2025.
Operating income from AMC’s domestic business was down 8.3% to $198.5 million, as the company invested in programming and marketing to grow its streaming business.
Revenues were up 5.5% to $604.5 million.
The company said distribution revenues were up 8% to $405 million. Subscription revenue increased 8% as the number of subscribers grew, offset by lower affiliate revenues because of cord-cutting.
Content-licensing revenue rose 9% to $61 million.
Ad revenue rose 1% to $201 million on higher pricing and digital growth as linear ratings dipped.
The company’s international businesses swung to operating income of $17.4 million from a $$3.2 million loss a year ago.
“We continue to advance our differentiated strategy of offering streaming services that appeal to audiences with distinct affinities and passions, which is leading to strong consumer loyalty and low churn,” interim CEO Matt Blank said.
“With our content cost advantages, our ability to super serve audiences, and our clear path to profitability by virtue of our unique strategy, we are reaffirming our full-year 2022 financial outlook and our target of achieving 20 million to 25 million streaming subscribers in 2025, as we continue to reconstitute our revenue mix and as we remain focused on profitability,” Blank said. ■
