Group 1 - AMC Networks is currently trading at all-time lows due to a heavy debt-load and challenges from cord-cutting trends in their legacy business segment [1] - The company has been highlighted in recent investment articles, with notable buy recommendations made in September and November 2023 [1] - The article mentions a successful acquisition of another company (ADTH) at $3.21 per share in June 2024, indicating potential for similar outcomes in the media sector [1] Group 2 - The article emphasizes the importance of conducting personal research before making investment decisions, suggesting a focus on educational content rather than direct investment advice [2] - It is noted that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [3]

Financial Performance - Consolidated revenues for Q1 2025 were $555.233 million, a decrease of 6.9% compared to $596.461 million in Q1 2024[102] - Operating income for Q1 2025 was $64.197 million, down 41.7% from $110.178 million in Q1 2024[102] - Adjusted operating income for Q1 2025 was $104.485 million, a decline of 30% from $149.124 million in Q1 2024[102] - Total net revenues decreased by 6.9% to $555.2 million for the three months ended March 31, 2025, compared to $596.5 million in the same period of 2024[124] - Subscription revenues declined by 4.1% to $358.1 million, with a 2.8% decrease in Domestic Operations and a 12.1% decrease in International Operations[124][125] - Advertising revenues fell by 12.1% in Domestic Operations to $141.9 million, while International Operations saw a 5.0% increase to $22.6 million[124][126] - Net income attributable to AMC Networks' stockholders was $18.0 million, down 60.6% from $45.8 million in the prior year[124] - Segment adjusted operating income for Domestic Operations decreased by 23.7% to $123.9 million, reflecting continued revenue headwinds in linear businesses[143][149] Expenses and Costs - Content expenses represent the largest expense in both Domestic and International segments, primarily consisting of amortization of program rights[115][119] - Selling, general and administrative expenses increased by 4.8% to $198.0 million, driven by higher employee-related costs[124][132] - Restructuring charges amounted to $4.8 million, primarily related to the planned wind-down of a U.K. joint venture[134] Cash Flow and Liquidity - Net cash provided by operating activities for the three months ended March 31, 2025, was $108.8 million, a decrease of 28% from $150.9 million in the same period of 2024[166] - For the three months ended March 31, 2025, free cash flow was $94.2 million, down from $144.1 million in the same period of 2024[184] - As of March 31, 2025, cash and cash equivalents totaled $870.2 million, with approximately $121.4 million held by foreign subsidiaries[157] Debt and Financial Obligations - The company has substantial debt and high leverage, which may affect its financial flexibility and access to capital markets[97] - The total net leverage ratio as of March 31, 2025, was approximately 4.34:1.00, below the maximum allowable ratio of 5.75:1.00 until March 31, 2026[161] - The company expects to rely on access to capital and credit markets to manage its debt obligations, as it does not anticipate generating sufficient cash from operations to repay all outstanding debt[160] - As of March 31, 2025, the carrying value of the company's fixed rate debt is $1.98 billion, exceeding its fair value of $1.76 billion by $213.9 million[185] - The company has $2.4 billion of debt outstanding, with $357.5 million subject to variable interest rates[186] - Approximately 85% of the company's debt is fixed as of March 31, 2025[186] Market Risks - The company faces risks related to market demand, competition, and economic conditions that could impact future performance[97] - The company is exposed to foreign currency risk due to transactions in currencies other than the functional currencies of its subsidiaries[187] - Fluctuations in the U.S. dollar against foreign currencies can lead to unrealized foreign currency translation losses or gains[190] - The company enters into foreign currency contracts to manage exchange rate risk, but not for speculative purposes[188] Taxation - The effective income tax rate for the three months ended March 31, 2025, was 40%, compared to 29% in the same period of 2024[140] Other Financial Metrics - The company recognized foreign currency transaction gains of $3.8 million for the three months ended March 31, 2025[189] - A hypothetical 100 basis point decrease in interest rates would increase the estimated fair value of the fixed rate debt by $23.2 million to $1.79 billion[185] - A hypothetical 100 basis point increase in interest rates would raise the annual interest expense by $3.6 million[186] - The company had a minimum interest coverage ratio of 2.64:1.00 as of March 31, 2025, exceeding the required minimum of 2.00:1.00[161] - Contractual obligations not reflected on the balance sheet decreased by $34.5 million to $560.8 million as of March 31, 2025[173]

Core Insights - AMC Networks reported a revenue of $555.23 million for the quarter ended March 2025, reflecting a decline of 6.9% year-over-year [1] - The earnings per share (EPS) was $0.52, down from $1.16 in the same quarter last year, indicating a significant drop in profitability [1] - The revenue fell short of the Zacks Consensus Estimate of $573.03 million, resulting in a surprise of -3.11% [1] - The company experienced an EPS surprise of -28.77%, with the consensus EPS estimate being $0.73 [1] Revenue Breakdown - International and Other revenues were reported at $69.95 million, which is a decrease of 7.5% year-over-year and below the average estimate of $72.88 million from three analysts [4] - Domestic Operations revenues amounted to $486.31 million, down 7.2% year-over-year, and also fell short of the three-analyst average estimate of $502.98 million [4] Operating Income - Adjusted Operating Income for International and Other was $9.85 million, compared to the estimated $13.64 million by three analysts [4] - Adjusted Operating Income for Domestic Operations was reported at $123.92 million, slightly below the average estimate of $125.72 million from three analysts [4] Stock Performance - Over the past month, shares of AMC Networks have returned +5.8%, while the Zacks S&P 500 composite has seen a +13.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - AMC Networks reported quarterly earnings of $0.52 per share, missing the Zacks Consensus Estimate of $0.73 per share, and down from $1.16 per share a year ago, indicating a significant earnings surprise of -28.77% [1][2] Financial Performance - The company posted revenues of $555.23 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 3.11%, and down from $596.46 million year-over-year [2] - Over the last four quarters, AMC Networks has surpassed consensus EPS estimates only once and topped consensus revenue estimates two times [2] Stock Performance - AMC Networks shares have declined approximately 37.5% since the beginning of the year, contrasting with the S&P 500's decline of -3.7% [3] - The current Zacks Rank for AMC Networks is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.67 on revenues of $589.02 million, and for the current fiscal year, it is $2.31 on revenues of $2.31 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock movements [6] Industry Context - The Broadcast Radio and Television industry, to which AMC Networks belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a relatively strong industry performance [8]

Financial Data and Key Metrics Changes - Consolidated net revenue decreased by 7% year over year to $555 million [21] - Consolidated AOI declined by 30% to $104 million, with a 19% margin [21] - Adjusted EPS was reported at $0.52 [21] - Free cash flow for the quarter was $94 million, on track to achieve approximately $220 million for the full year [20][31] Business Line Data and Key Metrics Changes - Domestic operations revenue decreased by 7% to $486 million, with subscription revenue down by 3% due to a 12% decline in affiliate revenue, partially offset by 8% growth in streaming revenue [21][22] - Advertising revenue in domestic operations decreased by 15% year over year, primarily due to lower linear ratings [25] - International revenue for the first quarter was $70 million, down 7%, with subscription revenue decreasing by 12% due to the non-renewal with Movistar in Spain [27] Market Data and Key Metrics Changes - Streaming subscribers at the end of the quarter were 10.2 million, flat compared to the prior year, with a slight decline from 10.4 million at the end of 2024 [24] - Advertising revenue from streaming is still in the low single digits but provides incremental revenue opportunities [48][49] Company Strategy and Development Direction - The company is focused on programming, partnerships, and profitability, emphasizing the generation of free cash flow [5][32] - Strategic initiatives include launching ad-supported versions of AMC Plus and Shudder, and expanding partnerships with distributors like Charter and Comcast [7][10] - The company aims to enhance its content distribution ecosystem and improve viewer experience through partnerships [36][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction despite macroeconomic uncertainties affecting the advertising market [32] - The company anticipates streaming revenue growth to accelerate as the year progresses, driven by pricing actions and new series debuts [25][31] - Management remains vigilant regarding potential impacts from the advertising market but has not seen meaningful indicators suggesting a material pullback [32][44] Other Important Information - The company has a healthy cash position with net debt of $1.5 billion and a consolidated net leverage ratio of 2.9 times [29] - The company has no bond maturities until 2029 and maintains over $1 billion in total liquidity [29] Q&A Session Summary Question: Can you tell us about the streaming subscribers coming in through bundled video packages? - Management is pleased with the integration with Charter and the anticipated take rates for embedded streaming services [35] Question: Are you seeing any risk of cannibalization on the a la carte side? - Management believes that expanding distribution will create a healthier video ecosystem and additional revenue opportunities [38] Question: How much of your advertising is coming from streaming? - Streaming advertising delivers incremental revenue, and the company is confident in its genre-based services [49] Question: When will you lap the subscription revenue issues from the Spanish drop? - Management anticipates growth in the Spanish market with other partners and is optimistic about future relationships with Movistar [50][51] Question: What do you expect content spend and content amortization to be this year? - Content amortization is expected to be slightly lower year over year, with cash content spend also down slightly [69]

Core Insights - AMC Networks reported a 7% decline in total revenue year-over-year, amounting to $555.2 million, with adjusted earnings per share at 52 cents, significantly lower than the previous year's quarter [1] Financial Performance - The company's advertising revenue fell 15% to $119 million, while affiliate revenue decreased by 12% to $156 million, attributed to basic subscriber declines and contractual rate decreases [4] - Content licensing revenue dropped 13% to $54 million, influenced by tough comparisons with the previous year when there was a boost from the sale of rights to "Killing Eve" [5] Streaming Metrics - AMC Networks' streaming subscriber count remained flat at 10.2 million compared to the same period last year, and decreased slightly from 10.4 million in the previous quarter [2] - The company has revised its method of counting streaming subscribers, excluding those from pay-TV or broadband bundles, which may have impacted the reported subscriber numbers [2] - Despite the downturn in subscribers, the company noted improvements in retention and viewing hours per subscriber, indicating a focus on higher-quality customers [3] Stock Performance - Shares of AMC Networks have declined by 37% in 2025, trading at $6.19, close to all-time lows [5]

Financial Performance - Net revenues for the first quarter of 2025 were $555.2 million, a decrease of 6.9% compared to $596.5 million in the same period of 2024[4] - Operating income fell to $64.2 million, down 41.7% from $110.2 million year-over-year[4] - Adjusted operating income was $104.5 million, representing a 29.9% decline from $149.1 million in the prior year[4] - Diluted earnings per share (EPS) decreased by 67.0% to $0.34, while adjusted EPS fell 55.2% to $0.52[4] - Free cash flow for the quarter was $94.2 million, down 34.7% from $144.1 million in Q1 2024[4] - Net income attributable to AMC Networks' stockholders was $18,049, a decline of 60.6% from $45,803 in Q1 2024[30] - Basic net income per share decreased to $0.40, down from $1.04 in the prior year[30] - For the three months ended March 31, 2025, the company reported a net income of $(15.336) million, resulting in a diluted EPS of $0.34[43] - Adjusted results for the same period showed an increase in net income to $29.224 million, with an adjusted diluted EPS of $0.52[43] - In comparison, for the three months ended March 31, 2024, the company reported a net income of $(23.649) million, with a diluted EPS of $1.03[44] - The adjusted results for Q1 2024 indicated a net income of $51.524 million, leading to an adjusted diluted EPS of $1.16[44] Revenue Breakdown - Streaming revenues increased by 8% to $157 million, while domestic operations revenues decreased by 7% to $486.3 million[5][8] - International revenues decreased by 7.5% to $69.9 million, with subscription revenues down 12% to $45 million due to a non-renewed distribution agreement in Spain[7][9] Cash Flow and Debt - Free cash flow for Q1 2025 was $94,185, compared to $144,149 in Q1 2024, reflecting a decrease of 34.7%[39] - Cash and cash equivalents increased to $870,229, up from $784,649 at the end of 2024[33] - Total debt as of March 31, 2025, was $2,361,260, with net debt at $1,491,031[35] - The company reported a leverage ratio of 2.9x as of March 31, 2025[35] - AMC Networks is in compliance with all financial covenants under its credit facility as of March 31, 2025[37] Restructuring and Costs - Restructuring initiatives included cash payments of $5.4 million for severance and employee-related costs for Q1 2025, compared to $3.5 million in Q1 2024[40] - The company incurred $0.4 million in content impairments and other exit costs for Q1 2025, while it was $1.3 million for Q1 2024[40] - Amortization of acquisition-related intangible assets for Q1 2025 was $7.795 million, down from $8.556 million in Q1 2024[43][44] - The company is focusing on restructuring and other related charges, which amounted to $4.790 million in Q1 2025[43] Strategic Initiatives - The company launched ad-supported AMC+ for Spectrum TV Select customers and expanded its FAST channels business with a new channel, Acorn TV Mysteries[5]

Core Viewpoint - AMC Networks Inc. reported a decline in financial performance for the first quarter of 2025, with significant decreases in net revenues, operating income, and earnings per share, while maintaining a focus on expanding its streaming services and content offerings [2][5][6]. Financial Highlights - Net revenues for Q1 2025 were $555.2 million, down 6.9% from $596.5 million in Q1 2024 [5]. - Operating income decreased by 41.7% to $64.2 million from $110.2 million year-over-year [5]. - Adjusted operating income fell 29.9% to $104.5 million compared to $149.1 million in the previous year [5]. - Diluted earnings per share (EPS) dropped 67.0% to $0.34 from $1.03, while adjusted EPS decreased 55.2% to $0.52 from $1.16 [5]. - Free cash flow was reported at $94.2 million, a decline of 34.7% from $144.1 million in Q1 2024 [5]. Operational Highlights - The company launched ad-supported AMC+ for Charter customers and expanded its FAST channels business [6]. - "Dark Winds" returned for its third season with approximately 2.2 million viewers on premiere night, leading to increased AMC+ subscriber acquisition [6]. - The Anne Rice Immortal Universe continues to gain momentum with new series launches and renewals [6]. - AMC Networks is enhancing its advertising opportunities, particularly in the horror genre, with the upcoming ad-supported launch of Shudder [6]. Segment Results - Domestic operations reported net revenues of $524.2 million, a decrease of 7.2% from $486.3 million in Q1 2024 [7]. - International segment revenues were $75.6 million, down 7.5% from $69.9 million year-over-year [8]. - Subscription revenues in domestic operations decreased by 3% to $313 million, while streaming revenues increased by 8% to $157 million [9]. Changes in Subscriber Reporting - The company updated its definition of "streaming subscribers" to include only those who register on an a la carte basis, resulting in a slight decline in reported subscribers to 10.2 million as of March 31, 2025, compared to 10.4 million at the end of 2024 [9][11]. Stock Repurchase Program - The Board of Directors authorized a stock repurchase program of up to $1.5 billion, with $135 million remaining for repurchase as of March 31, 2025 [18].

Group 1 - AMC Networks (AMCX) is projected to announce quarterly earnings of $0.73 per share, reflecting a decline of 37.1% year over year [1] - Revenues are expected to reach $573.03 million, a decrease of 3.9% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts have reassessed their initial estimates [1][2] Group 2 - Domestic Operations revenues are projected to be $502.98 million, indicating a year-over-year change of -4.1% [4] - Revenues from International and Other operations are expected to reach $72.88 million, reflecting a year-over-year decline of 3.6% [4] - Adjusted Operating Income for Domestic Operations is estimated at $125.72 million, down from $162.32 million a year ago [5] Group 3 - Adjusted Operating Income for International and Other operations is projected to be $13.64 million, slightly up from $13.40 million reported in the same quarter last year [5] - AMC Networks shares have shown returns of +8% over the past month, compared to the S&P 500 composite's +11.3% change [6] - AMC Networks holds a Zacks Rank 4 (Sell), suggesting it may lag behind overall market performance in the near future [6]

Core Viewpoint - AMC Networks Inc. will host a conference call on May 9, 2025, to discuss its first quarter 2025 results, with a press release to be issued before market opening [1]. Group 1: Conference Call Details - The conference call will take place at 8:30 a.m. Eastern Time [1]. - Pre-registration is required to access the conference call via telephone, with instructions available on the company's investor relations website [2]. - Internet replays of the call will be accessible approximately two hours after the call concludes [2]. Group 2: Company Overview - AMC Networks is a prominent player in the TV and film industry, known for creating and curating celebrated series and films [3]. - The company's portfolio includes various streaming services such as AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, as well as cable networks like AMC, BBC AMERICA, IFC, SundanceTV, and We TV [3]. - AMC Networks operates its in-house studio, AMC Studios, which is responsible for original franchises like The Walking Dead Universe and the Anne Rice Immortal Universe [3].