AMC Networks’ first-quarter results saw operating income remain mostly flat as advertising revenues plummeted for the company’s domestic networks division.
Net revenues increased 2.9% to $741 million thanks to 2.9% growth at National Networks and 4.3% growth at International and Other. But operating income rose only 0.9% to $234 million.
National networks—which is home to AMC, IFC, BBC America and Sundance—grew its revenues by 2.9% to $633 million and its operating income by 0.1%. The revenue growth for the second was primarily driven by higher content licensing revenues as well as an increase in subscription revenues. However, lower delivery and the timing of the airing of original programming, despite higher pricing, led to advertising revenue falling 8.8% during the quarter.
International and other (including AMC’s streaming services Shudder and Sundance Now) grew 4.3% to $111 million but still posted an operating loss of $17 million partially due to restructuring expenses.
"Our content continues to break through in a cluttered environment, with recent series including BBC AMERICA's Killing Eve, IFC's Brockmire, and AMC's Fear the Walking Dead and The Terror drawing wide critical acclaim and strong viewership, and our streaming services, Sundance Now and Shudder, continue to gain traction with consumers. As we focus on delivering shareholder value in the near and long-term, we remain disciplined in our approach to content investments and managing costs while increasingly diversifying our revenue mix through content sales, franchise monetization and new distribution platforms,” AMC Networks CEO Josh Sapan said in a statement.
Sapan said that AMC has grown total distribution of its networks and that it is the most widely available independent programmer among virtual MVPDs, “an indicator of our strong position as these emerging platforms continue to grow.”