AMC Networks Sees 18% Drop in Q3 Ad Revenue, Streaming Subscribers Grow by 100,000

Net income for Q3 stands at $67.9 million due to streaming revenue growth, as restructuring plan nears completion aiming for substantial cost reductions amidst industry-wide cord-cutting.

• AMC Networks, responsible for brands like AMC, IFC, Sundance TV and streaming services such as AMC+, Acorn TV and Shudder, reported an 18% drop in Q3 U.S. advertising revenue, with profits falling to $147 million due to anticipated linear ratings decline, challenging ad market, and fewer original programming episodes.
• The company successfully grew its number of streaming subscribers by 100,000 to a total of 11.1 million by the end of Q3, returning to a growth trajectory after recent declines.
• AMC has nearly finished a restructuring plan initiated last November, designed to significantly reduce costs amidst industry-wide 'cord-cutting', including the exit of a portion of its office space in its corporate headquarters, leading to impairment charges of $11.6 million.
• AMC's Q3 revenue fell by 7% year over year to $636.95 million, falling short of Wall Street expectations. This drop was largely caused by lower domestic advertising and affiliate revenue which was only partially offset by the growth in streaming revenue.
• The company continues to focus on high-quality programming, strong partnerships, and profitability despite the ongoing experimentation and change in the industry. Their efforts include the introduction of an ad-supported version of AMC+ and the launch of programmatic buying on their linear networks.

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