AMC Networks (NASDAQ: AMCX) stock gained after it reported fiscal second-quarter 2025 results on Friday.
The company reported a quarterly revenue decline of 4.1% year over year to $600.02 million, beating the analyst consensus estimate of $582.04 million.
The American entertainment company’s adjusted EPS of 69 cents fell 44.4% Y/Y, topping the analyst consensus estimate of 61 cents.
Also Read: AMC Networks’ Sales Drop As Analyst Warns Of ‘Continued Pressure’ On Revenue
Domestic operations revenues decreased 2% to $527 million.
Subscription revenues decreased 1% to $320 million due to declines in the linear subscriber universe, partially offset by streaming revenue growth.
Streaming revenues increased 12% to $169 million primarily due to the impact of price increases across its services.
Streaming subscribers increased 2% to 10.4 million as compared to 10.2 million subscribers at June 30, 2024 and March 31, 2025.
Affiliate revenue decreased 12% to $151 million due to basic subscriber declines and, to a lesser extent, contractual rate decreases in connection with renewals.
Advertising revenues decreased 18% Y/Y to $123 million due to linear ratings declines and lower marketplace pricing, including digital CPMs.
Content licensing revenues increased 26% to $84 million primarily due to the timing and availability of deliveries.
International revenues decreased 16% to $76 million.
The consolidated adjusted operating income decreased 28.4% to $109.4 million.
Operating cash flow for the quarter fell 1.5% YoY to $102.8 million, while the free cash flow rose 0.6% to $95.7 million. AMC Networks ended the quarter with a cash and equivalents balance of $866.4 million.
CEO Kristin Dolan said the company is executing its strategic plan centered on programming, partnerships, and profitability. She noted the focus remains on delivering high-quality, distinctive series and films across all platforms, including its portfolio of targeted streaming services. The company accelerated streaming revenue growth in the second quarter, strengthened content licensing, and maintained healthy free cash flow generation. It raised its 2025 free cash flow outlook to about $250 million for the full year.
The stock plunged over 39% year-to-date as it failed to meet the revenue and EPS estimates of at least two out of the last four quarters, driven by the cable ecosystem weakness.
Price Action: At last check Friday, AMC Networks stock is trading higher by 1.67% to $6.100 premarket.
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