AMC Networks Reports Lower Q1 Earnings

First-quarter net revenues decreased 6.4 percent to $734 million at AMC Networks, which posted quarterly earnings of $69 million, compared with $143 million in the first quarter of 2019.

The decrease in net revenues reflected an 8 percent decline at National Networks and essentially flat revenues at International and Other. Operating income was $173 million, down 29.4 percent.

National Networks, which posted $567 million in total revenue, saw a 10.8 percent decrease in advertising to $213 million, primarily related to lower delivery as well as the timing of the airing of original programming partially offset by higher pricing. Distribution revenues decreased 6.2 percent to $354 million.

International and Other revenues decreased 0.3 percent to $170 million. An increase at AMC Networks SVOD was offset by a decrease at the company’s international programming networks. To a lesser extent, revenues also decreased at IFC Films and Levity Entertainment.

President and CEO Josh Sapan said: “In what has been a unique operating environment, AMC Networks continues to generate significant levels of free cash flow and remains well capitalized with a strong balance sheet and strong liquidity. We continue to make significant progress on our digital initiatives, including strong subscriber growth across our Acorn TV, Shudder, Sundance Now and UMC (Urban Movie Channel) SVOD services, as well as Acorn TV launching in the U.K. Our portfolio of networks is delivering increased viewership in recent weeks, including a strong debut of the third season of Killing Eve and strong performance for the most recent and exceptional season of Better Call Saul. Our continued investment in key areas—creating strong content and valuable IP, growing our targeted SVOD services and maximizing the value of our linear channels—is enabling us to navigate this challenging time and will continue to serve us well when this environment stabilizes and as we look beyond this immediate period to the remainder of 2020 and ahead to 2021.”

Beginning in mid-March (in the wake of the COVID-19 pandemic), the company experienced adverse advertising sales impacts and suspended content production, which has led to delays in the creation and availability of some of its TV programming. “Although the effect of the pandemic may not be fully reflected in the company’s business until future periods, the company believes that the adverse impact of the COVID-19 pandemic will be material to its results of operations,” AMC Networks said. “The company does not expect the COVID-19 pandemic and its related economic impact to affect its liquidity position or its ongoing ability to meet the covenants in its debt instruments.”