NEW YORK, Nov. 08, 2024 (GLOBE NEWSWIRE) -- AMC Networks Inc. ("AMC Networks" or the "Company") (NASDAQ: AMCX) today reported financial results for the third quarter ended September 30, 2024.
Chief Executive Officer Kristin Dolan said: "As we manage this business within a complex and changing environment, we remain focused on our key strategic pillars - programming, partnerships and profitability. During the quarter, we made significant advancements across all three areas. We have generated $293 million of free cash flow year to date and are well on our way to delivering our stated goal of approximately half a billion dollars in cumulative free cash over two years. We also entered into new and enhanced partnerships with major companies like Charter, Netflix, Amazon and others which are driving our company forward as we continue to provide distinctive, high-quality programming to customers across an expanding array of platforms."
Operational Highlights:
- Renewed several major affiliate agreements, including an early renewal with Charter which includes the ad-supported version of AMC+ being bundled to Charter video customers at no additional cost to the customer.
- Launched prior seasons of 13 AMC series on Netflix. Branded "The AMC Collection," the shows delivered strong initial performance on Netflix and viewership and acquisition gains for new seasons on AMC+.
- Continued momentum in FAST with launch of 15 AMC Networks' FAST channels on Amazon Platforms.
- Launched a promotional content sampling arrangement with AMC+ and MGM+, bringing first seasons of nine AMC+ series to MGM+ and first seasons of nine MGM+ series to AMC+, for the next two months.
- Expanding key AMC Studios franchises including start of production of the third season of The Walking Dead: Daryl Dixon and the third series in the Anne Rice Immortal Universe, The Talamasca.
- Completed a transaction with BBC Studios to acquire the remaining 50.1% of the BBC America joint venture, providing 100% ownership and full operational control of the iconic BBC America network, while maintaining a commercial relationship with BBC Studios to support the continued strength of the brand and programming.
- Net cash provided by operating activities of $62 million; Free Cash Flow(1) of $54 million, with $293 million generated year to date.
- Operating income of $94 million in the third quarter; Adjusted Operating Income(1) of $131 million, with a margin of 22%.
- Net revenues of $600 million decreased 6% from the prior year. Excluding $20 million of revenues in the prior year related to 25/7 Media (which we divested on December 29, 2023), net revenues decreased 3%.
- Streaming revenues of $152 million increased 7% from the prior year.
- Diluted EPS of $0.76; Adjusted EPS(1) of $0.91.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Dollars in thousands, except per share amounts | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||
| Net Revenues | $ | 599,614 | $ | 636,954 | (5.9 | )% | $ | 1,822,009 | $ | 2,033,029 | (10.4 | )% | |||||||||||
| Operating Income | $ | 93,653 | $ | 120,850 | (22.5 | )% | $ | 214,619 | $ | 399,855 | (46.3 | )% | |||||||||||
| Adjusted Operating Income | $ | 131,476 | $ | 177,268 | (25.8 | )% | $ | 433,407 | $ | 569,808 | (23.9 | )% | |||||||||||
| Diluted Earnings Per Share | $ | 0.76 | $ | 1.44 | (47.2 | )% | $ | 1.21 | $ | 5.40 | (77.6 | )% | |||||||||||
| Adjusted Earnings Per Share | $ | 0.91 | $ | 1.85 | (50.8 | )% | $ | 3.27 | $ | 6.49 | (49.6 | )% | |||||||||||
| Net cash provided by operating activities | $ | 62,235 | $ | 106,092 | (41.3 | )% | $ | 317,507 | $ | 131,139 | 142.1 | % | |||||||||||
| Free Cash Flow | $ | 53,941 | $ | 99,150 | (45.6 | )% | $ | 293,255 | $ | 102,747 | 185.4 | % | |||||||||||
| (1) | See page 5 of this earnings release for a discussion of non-GAAP financial measures used in this release. This discussion includes the definition of Adjusted Operating Income, Adjusted EPS and Free Cash Flow. |
(dollars in thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||
| Net Revenues: | |||||||||||||||||||||||
| Domestic Operations | $ | 530,243 | $ | 541,198 | (2.0 | )% | $ | 1,592,760 | $ | 1,734,871 | (8.2 | )% | |||||||||||
| International | 73,706 | 97,598 | (24.5 | )% | 239,406 | 304,974 | (21.5 | )% | |||||||||||||||
| Inter-segment Eliminations | (4,335 | ) | (1,842 | ) | (135.3 | )% | (10,157 | ) | (6,816 | ) | (49.0 | )% | |||||||||||
| Total Net Revenues | $ | 599,614 | $ | 636,954 | (5.9 | )% | $ | 1,822,009 | $ | 2,033,029 | (10.4 | )% | |||||||||||
| Operating Income (Loss): | |||||||||||||||||||||||
| Domestic Operations | $ | 129,978 | $ | 161,627 | (19.6 | )% | $ | 374,730 | $ | 523,645 | (28.4 | )% | |||||||||||
| International | 8,702 | 7,985 | 9.0 | % | (26,484 | ) | 10,422 | n/m | |||||||||||||||
| Corporate / Inter-segment Eliminations | (45,027 | ) | (48,762 | ) | 7.7 | % | (133,627 | ) | (134,212 | ) | 0.4 | % | |||||||||||
| Total Operating Income | $ | 93,653 | $ | 120,850 | (22.5 | )% | $ | 214,619 | $ | 399,855 | (46.3 | )% | |||||||||||
| Adjusted Operating Income (Loss): | |||||||||||||||||||||||
| Domestic Operations | $ | 150,189 | $ | 185,011 | (18.8 | )% | $ | 467,856 | $ | 589,205 | (20.6 | )% | |||||||||||
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