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Investing.com - AMC Networks Inc. (NASDAQ:AMCX) on Friday reported third quarter adjusted earnings that fell short of analyst expectations, despite revenue that exceeded forecasts as the company continues its transition from traditional cable to streaming.
The media company posted adjusted earnings per share of $0.18, missing the analyst consensus of $0.28 by 10 cents. Revenue came in at $561.7 million, surpassing market expectations of $549 million but still declining 6.3% YoY from $599.6 million.
"Our performance in the third quarter marks a key milestone in our transition from a cable networks business to a global streaming and technology focused content company," said Chief Executive Officer Kristin Dolan.
"Streaming revenue growth accelerated and will represent our largest single source of domestic revenue this year."
Domestic subscription revenues remained flat at $316.2 million as 14% growth in streaming revenues offset declines in affiliate revenues. Streaming subscribers increased 2% YoY to 10.4 million. However, advertising revenues dropped 17.4% to $110 million due to linear ratings declines and lower marketplace pricing.
The company’s adjusted operating income decreased 28.2% to $94.4 million, with a margin of 17%. Despite these challenges, AMC Networks generated $42 million in free cash flow during the quarter and remains on track to achieve its increased outlook of $250 million in free cash flow for the full year.
International revenues increased 4.7% to $77.1 million, with advertising revenues up 15.3% to $25.9 million due to strong performance in the UK and Ireland.
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