AMC Networks Sees Up To five.5M SVOD Subs By Yr Finish; Decrease Q3 Distribution & Advert Income Damp Gross sales, Earnings At U.S. Linear Networks – .
AMC Networks expects 5.5 million SVOD subscribers by the end of the year, including the new AMC + Premium offering Lower sales and advertising revenues – in part related to COVID – weighed on US linear network profits and earnings for the third quarter ending September.
Total revenue decreased 9% to $ 654 million as national networks decreased 17% – the five networks were AMC, WE tv, BBC AMERICA, IFC and SundanceTV. Third quarter net income was $ 62 million ($ 1.17 per diluted share) compared to $ 117 million ($ 2.07 per diluted share) a year earlier.
The numbers are in line with worldly video trends in linear television, and AMC performed better than expected in its “international and other segment”, according to one analyst. “AMC continues to face the challenging advertising environment and the gradual deterioration in MVPD subscriber trends. We are reaffirming our market perform rating, ”said Doug Creutz of Cowen in an early announcement to investors.
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AMC announced in a press release that the COVID-19 pandemic “has had a significant impact on its operations but does not expect the pandemic and the associated economic impact to affect the company’s liquidity position” or the company’s ability to meet its financial needs continue to meet.
In a statement with the numbers, AMC CEO Josh Sapan said “delivered solid results in 3rdapprox We continue to maintain a strong financial profile, with a solid balance sheet, very good liquidity and healthy free cash flow. AMC Networks is fast becoming the world’s leading provider of SVOD services for audiences. Our Acorn TV, Shudder, Sundance Now and UMC services are projected to have more than 4 million subscribers by year-end and exceed our expectations. With our new AMC + Premium SVOD offering, we expect a total of 5.0 to 5.5 million SVOD subscribers by the end of the year. Our strong content continues to resonate with viewers. AMC is home to four of the top six cable dramas in adults between the ages of 25 and 54 in 2020, including our latest series in The Walking Dead Universe. The Walking Dead: World Beyond Operating income for the best cable drama of the year decreased 23.6% to $ 159 million. “
Sapan is due to call analysts this morning to discuss the numbers.