AMC Networks has reported a significant setback as it lost 300,000 subscribers across its streaming services in the first quarter of this year.
The company’s subscriber base fell from 11.8 million at the end of 2022 to 11.5 million by March 31, according to the recently released earnings results.
This decline follows a modest increase of 700,000 paid streaming customers between the third and fourth quarters of the previous year.
AMC Networks’ streaming platforms encompass a range of services, including AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, in addition to its linear channels such as AMC, BBC America, IFC, SundanceTV, WE tv, and IFC Films.
The Network had previously set a target of reaching 20-25 million streaming subscribers by 2025, expecting to achieve half of that goal by the end of this year, as stated in their guidance.
In addition to the subscriber loss, the company also experienced a 20% decline in U.S. ad sales during the first quarter. However, AMC Networks managed to surpass expectations for the quarter in terms of both revenue and earnings.
While domestic operations revenue increased by 1% compared to the previous Q1, content licensing saw a substantial growth of 69%, and subscription revenue rose by 1%. Streaming revenue witnessed an impressive 29% increase, although affiliate sales dropped by 11.7%.
Meanwhile, the “International and Other” segment, which includes AMC Networks International and 25/7 Media, reported a 2% decrease in revenue. Distribution and other revenues grew by 2%, while ad sales declined by 17%.
AMC Networks’ adjusted earnings per share (EPS) came in at $2.62, exceeding Wall Street’s forecast of $1.87. Revenue for the quarter reached $717 million, representing a 0.7% year-over-year increase.
CEO Kristin Dolan acknowledged the evolving consumption patterns and emphasized the company’s commitment to making its content accessible across various distribution channels.
Dolan highlighted cost reduction and organizational streamlining efforts, which contributed to strong margins and increased streaming revenue in the first quarter. She further emphasized the company’s focus on overall profitability, maintaining a strong balance sheet, generating free cash flow, and maximizing shareholder value.
AMC Networks’ stock closed at $15.28 per share on Monday, and the company’s executives will discuss the quarter’s performance in detail during a conference call scheduled for 8:30 a.m. ET.
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