AMC Networks Inc. (NASDAQ:) reported growth in its fourth-quarter and full-year 2023 earnings, with a particular emphasis on the expansion of its streaming services and international initiatives.
The company achieved its full-year guidance, including a consolidated revenue of $2.7 billion and a free cash flow of $169 million. Despite expecting a decline in consolidated revenue of approximately 6% in 2024, AMC Networks is optimistic about its streaming revenue growth and international business prospects.
- AMC Networks reported consolidated revenue of $2.7 billion and free cash flow of $169 million for the full year of 2023.
- The company saw growth in streaming revenue and subscriber base, with a 25% increase in Adjusted Operating Income (AOI) margin.
- AMC Networks plans to focus on programming, partnerships, and profitability in 2024.
- There is an anticipated decline in consolidated revenue by about 6% in 2024, but streaming revenue is expected to grow in the high single-digit to low double-digit range.
- The company aims to generate approximately $0.5 billion in free cash flow over the next two years.
- AMC Networks highlighted its leadership in national linear addressable advertising and its technological advancements in programmatic ad buying.
- AMC Networks expects to grow free cash flow year-over-year.
- The company plans to reduce gross debt over time and prioritize programming investment, balance sheet improvement, and strategic mergers and acquisitions (M&A).
- There is an expected decline in domestic advertising revenue and domestic affiliate revenue.
- High single-digit declines in advertising are projected for 2024, reflecting a weaker marketplace and ongoing impressions decline.
- The company highlighted the successful launch of the ad-supported version of AMC+ and its strong presence on various platforms.
- AMC Networks has a selective approach to licensing and the ability to sell to third parties when appropriate.
- The company is optimistic about its international business, focusing on streaming initiatives and content licensing.
- After excluding one-time payments and the impact of the Hulu licensing agreement, normalized free cash flow would have been $231 million.
- The company anticipates a decline in consolidated revenue of approximately 6% in 2024.
- AMC Networks executives expressed confidence in their strategies and expansions, citing growth in their first sales position…