AMC Networks Inc. released its financial results for the fourth quarter and full year ended December 31, 2024, reporting solid performance across key metrics and exceeding its free cash flow guidance. The company highlighted successful affiliate renewals, strategic streaming partnerships, growth in its FAST channels business, and innovative advancements in advertising technology.
CEO Kristin Dolan expressed satisfaction with the company’s performance, stating, “We are pleased and encouraged by our results in the fourth quarter and across all of 2024. We achieved our full-year guidance across all key financial metrics, including generating healthy free cash flow of $331 million.” Dolan also announced increased free cash flow expectations, projecting approximately $550 million in cumulative free cash flow over the 2024-2025 two-year period.
Yet one of the biggest red flags here was that subscriber revenue dropped 13% in 2024 vs 2023 as the number of people paying for cable TV continues to drop. The one bright spot was streaming subscribers jumped 8% in 2024 to 12.4 million up from 11.4 million at the end of 2023 for its streaming services, including AMC+.
AMC Networks demonstrated strength in several key areas. The company completed significant affiliate renewal activity, securing multi-year agreements with major distributors like Charter, Cox, Verizon, and Cable One, representing nearly half of its domestic affiliate subscriber base. A key strategic move was the renewal of its multi-year agreement with Amazon Prime Video Channels for the global distribution of its entire portfolio of streaming services.
The company also highlighted the continued expansion of its Free Ad-Supported Streaming TV (FAST) business, now boasting 19 live FAST channel brands across 12 platforms, totaling 136 active channel feeds. AMC Networks also emphasized its leadership in advertising innovation with the launch of AMCN Outcomes, a new performance product integrated into its Audience+ platform. This tool allows advertisers to track campaign outcomes and optimize delivery in real-time.
Looking ahead to 2025, AMC Networks has a robust slate of original programming lined up, including “Anne Rice’s Mayfair Witches,” “Dark Winds,” “The Walking Dead: Dead City,” “The Walking Dead: Daryl Dixon,” and highly anticipated new series such as “Anne Rice’s The Talamasca” and “Nautilus.”
Financially, AMC Networks reported full-year net revenues of $2.421 billion. However, this figure is not directly comparable to the previous year due to several factors, including 2023 revenues related to 25/7 Media, “Silo” deliveries, and the return of rights from Hulu, as well as 2024 revenues related to one-time retroactive adjustments. Excluding these items, net revenues decreased by 6%. Streaming revenues, a key growth area, increased by 7% to $603 million, with streaming subscribers reaching 12.4 million, an 8% increase from 2023.
The company reported a full-year operating loss of $40 million, which included significant impairment and other charges of $400 million and restructuring charges of $49 million. Adjusted Operating Income, a non-GAAP measure, was $563 million, with a margin of 23%. Diluted EPS was $(5.10), while Adjusted EPS was $3.86.
For the fourth quarter of 2024, net revenues were $599 million. The company reported an operating loss of $254 million, including impairment and restructuring charges. Adjusted Operating Income was $129 million, with a margin of 22%. Diluted EPS was $(6.38), and Adjusted EPS was $0.64.
The Domestic Operations segment saw revenue declines, primarily due to challenges in the linear business, though streaming revenue showed growth. The International segment’s results were impacted by the divestiture of 25/7 Media and a non-renewal of a distribution agreement in the UK, but advertising revenue showed strength, particularly excluding one-time adjustments.
The company highlighted its stock repurchase program, with $135 million remaining authorized for repurchases. AMC Networks emphasized its use of non-GAAP measures like Adjusted Operating Income and Free Cash Flow to assess performance, providing reconciliations to GAAP measures in its earnings release.
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