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AMC Networks reports a consolidated revenue of $2.7 billion By Investing.com

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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.

Key Takeaways

  • 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.

Company Outlook

  • 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).

Bearish Highlights

  • 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.

Bullish Highlights

  • 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.

Misses

  • 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.

Q&A Highlights

  • AMC Networks executives expressed confidence in their strategies and expansions, citing growth in their first sales position…

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