AMC’s Q4 national networks revenue falls 1.3%

The Walking Dead
"The Walking Dead" (AMC Networks)

AMC Networks’ national networks segment posted $606 million in fourth-quarter revenue, down 1.3% year-over-year as advertising revenues for the segment sank.

Advertising revenue fell 9.9% to $269 million, which AMC attributed to lower delivery offset partially by higher pricing. However, distribution revenue rose 6.8% to $337 million thanks to an increase in subscription revenue as well as content licensing revenues.

The segment’s operating income fell 6.5% to $177 million and adjusted operating income fell 5.2% to $195 million. The company attributed the decreases to a decline in revenues as well as an increase in operating expenses due to higher programming expenses. Programming expenses included charges of $38 million related to the write-off of programming assets.

WHITEPAPER

How To Lower the Cost of Ownership of Your Cable Access Network

This white paper presents a cost analysis of a virtualized cable modem termination system (CMTS) deployed in a distributed access architecture (DAA). Learn how to eliminate traditional CMTS constraints, efficiently enhance your network performance and more.

National networks includes AMC, WE tv, BBC AMERICA, IFC and SundanceTV, as well as AMC Studios.

RELATED: AMC Networks’ Q3 operating income spikes 31%

AMC Networks CEO Josh Sapan said the company’s recent deals with fuboTV and Philo expand AMC’s distribution and that its ad-free service AMC Premiere is gaining momentum.

"‘AMC Premiere' continues to gain traction, with YouTube TV recently joining Comcast Xfinity in making our ad-free AMC streaming option available to its subscribers. Our owned streaming services Sundance Now and Shudder are seeing healthy subscriber growth and their momentum, coupled with the growth of the other streaming services we have invested in, including Acorn TV, Urban Movie Channel, and the BBC and ITV's Britbox, highlights consumer demand for subscription streaming services with specialized content.  As we continue to evolve and adapt in a world of changing viewer consumption habits, we believe AMC Networks occupies a position of unique strength and are confident that our size, our focus, and our portfolio of assets will enable us to continue to deliver strong financial results to our shareholders," said Sapan in a statement.

Suggested Articles

WarnerMedia scored a key HBO Max distribution deal with Comcast just as it launched in May. Nearly six months later, there still isn’t an app.

Peacock, NBCUniversal’s recently launched streaming video service, is rolling out 20% discounts on annual Premium subscriptions for Black Friday.

How can we defend ourselves? Mostly, it’s a matter of common sense.