AMC Networks reported second-quarter 2024 earnings on Friday, exhibiting a $97 million hit to its stability sheet, together with a $68 million goodwill impairment cost on its worldwide unit following the sale of 25/7 Media and $29 million in long-term property Impairment fees BBC America is a three way partnership with BBC Studios.
U.S. advert gross sales additionally fell 11% to $149 million within the quarter, however streaming subscribers on AMC Networks’ platforms elevated barely, to 11.6 million from 11.5 million on the finish of the earlier quarter.
AMC Networks’ streaming platforms embody AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and HIDIVE. These digital choices don’t embody the corporate’s linear channels AMC, BBC America, IFC, SundanceTV, WE television and IFC Movies.
AMC Networks’ content material licensing income fell 18% yr over yr to $67 million. Subscription income fell 3% total, whereas streaming income grew 9% to $150 million as costs elevated.
Worldwide income fell 9% to $90 million within the second quarter. Excluding comparisons with 25/7 Media-related income, the determine is adjusted to a 4% decline. Worldwide subscription gross sales fell 13% to $50 million. Content material licensing plunged 86% to $3 million. Promoting gross sales surged 84%, and the one-time adjustment fee was US$13 million. If this fee is excluded, promoting gross sales will enhance by 18%.
AMC Networks stated: “Through the second quarter of 2024, we decided that the decline in share value was an indicator of potential impairment of goodwill. Because of this, we performed a quantitative evaluation of all reporting items and concluded that the truthful worth of AMCNI’s reporting items declined to lower than its carrying worth. Because of this, we acknowledged an impairment cost of $68 million, which is included in impairment and different fees within the condensed consolidated assertion of earnings (loss). As well as, the Firm performed a recoverability check that decided Fengyuan. The carrying worth of the asset group exceeded its truthful worth, so an impairment cost of $29 million was made on identifiable intangible property and different long-term property and included within the impairment allowance and impairment allowance.
Wall Road forecast earnings of $1.52 per share (EPS) on income of $601 million, in response to analyst consensus knowledge offered by LSEG (previously Refinitiv). AMC Networks reported adjusted earnings of $1.24 per share on income of $625 million.
“AMC Networks continues to pursue alternatives inside its strategic plans round programming, partnerships and profitability,” CEO Kristin Dolan stated in a letter to shareholders. “Key to our plan is to create and curate acclaimed movies and TV collection and make them out there to audiences all over the world, together with by way of an thrilling new branded content material licensing settlement with Netflix. Within the first half of 2024, we’re on monitor to ship robust Vital progress has been made on free money stream, a strategic precedence, and we’re properly on monitor to realize full-year free money stream steering.
