AMC Networks shying away from ad refusal to release strong Q4 numbers ahead of CEO change

AMC Networks posted strong results for the fourth quarter, with total revenue up 20% to $964.5 million from the prior quarter, while earnings per share nearly doubled to $2.52.

Wall Street analysts had expected revenue of $947.8 million and earnings per share of $1.20.

U.S. ad revenue fell 12% to $206 million, with the company attributing the decline to lower linear ratings, weakness in the broader ad market and fewer episodes of original programming during the quarter.

Content licensing revenue increased 18% to $492 million and subscription revenue increased 6%, driven by higher streaming revenue as growth in streaming subscribers offset a decline in the linear subscriber base. Streaming revenue grew 35% to $502 million from 11.8 million subscribers. (The company has a goal of 20 million to 25 million by 2025.) Affiliate revenue fell 6% due to subscriber numbers, although the decline was partially offset by contracted rate increases.

The company has grown significantly in recent months. Kristin Dolan, wife of owner James Dolan and a family member who controls AMC Networks stock, was appointed CEO this week. Effective February 27, she succeeds Christina Spade, who held the top position for just three months following her appointment as CFO last year. Spade’s short tenure followed the interim of former Showtime boss Matt Blank, who took over from Josh Sapan after his 26-year tenure ends in 2021.

AMC Networks, which has reportedly turned down takeover interests from media peers and private equity firms as its market cap has fallen below $1 billion, has announced it will lay off 20% of its workforce. Like other cable programmers, it is grappling with the implications of the cable break and trying to navigate the new economic landscape of streaming.

Executives will discuss the quarterly results in a conference call with Wall Street analysts later this morning.