AMC Networks Ends Q2 With 10.8M Streaming Subscribers, Ad Revenue Dips

AMC Networks said streaming subscribers jumped 46% to 10.8 million in the June quarter, up from 7.4 million, driven in part by the AMC+ premium streaming bundle launch in Spain. The company said it's on track to achieve long-term subscriber goal of 20 million to 25 million streaming subscribers by 2025.

Streaming revenue was up 20%. The portfolio spans AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and anime-focused HIDIVE.

The parent of AMC, BBC AMERICA (JV with BBC Studios), IFC, SundanceTV, WE tv, IFC Films and AMC Studios said total revenues fell 4% to $738 million. Of that, advertising sales were down 5% to $202 million due to lower linear ratings, partially offset by higher year-over-year AMC Originals impressions, pricing, and digital growth.

Streaming growth beat expectations, but revenue was a miss, with the stock trending lower in pre-market trading.

Net income of $83.4 million was up sharply from $35.4 million as the prior-year quarter was hit by impairment charges of $143 million associated with a one-time litigation-related settlement payment.

"We are building our business in a steady, disciplined and sustainable fashion, positioning ourselves for future growth," said AMC interim CEO Matt Blank – who will hand the reins to Christina Spade.

Domestic revenues decreased 3% to $621 million.

Distribution and other revenues decreased 2% to $419 million. Subscription revenues grew 1% with increased streaming revenues driven by strong subscriber growth on our streaming services and contractual affiliate rate increases, partially offset by declines in the linear subscriber universe.

International revenues fell 9% to $126 million, with ad revenue down 16%, or 7% on a constant currency basis.

Highlights for the quarter:

-Renewed two AMC original series, Moonhaven and Dark Winds , for second seasons

-Ordered a third new series in The Walking Dead universe, featuring original stars Andrew Lincoln and Danai Gurira

-Acquired North American rights to new series Monsieur Spade, from Emmy Winners Scott Frank and Tom Fontana, featuring Clive Owen in the iconic role of Sam Spade, the beloved character created by Dashiell Hammett and featured in The Maltese Falcon

-Expanded streaming distribution footprint in India with the launch of AMC+ on Amazon Prime Video Channels

-Received 12 Emmy nominations, including seven for Better Call Saul