AMC Networks reported net revenue of $555 million, down from $596 million in the prior year. Operating income fell to $63 million from $110 million. Earnings per share came in at 54 cents, missing analyst expectations.Subscription revenues decreased 3 percent to $313 million due to declines in the linear subscriber universe. Streaming revenues increased 8 percent to $157 million, which was largely due to the impact of price increases.Starting this quarter, the company is changing the way it reports streaming subscribers. The number now only include subscribers who pay a fee for one of their services, which include AMC+, Acorn TV, Shudder and more, rather than those who receive access to one of the streaming services through a video package that also includes linear programming, such as Charter’s Spectrum TV customers, who receive ad-supported AMC+ because they have AMC in their Spectrum video package, which became available at the end of March.This also caused the company to “recast” its prior subscriber numbers. Given that, the company reported 10.2 million streaming subscribers in the first quarter, flat with the number from a year earlier. This is down slightly from the recast 10.4 million in Q4 2024.“The sequential decrease reflects our continued focus on higher quality subscribers, which was realized through the implementation of tighter credit standards for new sign-ups across our DTC and partner acquisition funnels as well as the timing and cadence of our content slate and subscriber acquisition marketing,” the company said in the press release.Domestic ad sales were down 15 percent to $119 million due to declining cable ratings. Content licensing revenues decreased 13 percent to $54 million due to the availability of deliveries in the period, which also included the prior year impact of the sale of rights and interests to Killing Eve.“We continue to execute on our core strengths as we navigate the changing world of media. During the first quarter we delivered high-quality premium programming to our audiences, launched ad-supported AMC+ on Charter and generated $94 million of free cash flow. We remain nimble and opportunistic in broadly distributing our sought-after content across all available platforms to build value for our partners, viewers and shareholders,” said CEO Kristin Dolan.On the earnings call, CFO Patrick O’Connell said “while there’s been a recent uptick in macroeconomics uncertainty broadly” the company is “not seeing meaningful indicators that suggest a material pullback.”For 2025, the company still expects free cash flow of approximately $220 million and consolidated revenue of approximately $2.3 billion, which reflects “continued linear headwinds, partially upset by profitable streaming and digital growth.”The company also plans to launch an ad-supported version of the horror streaming service Shutter and to launch a new FAST channel for Acorn TV mysteries.On the call, Dolan praised AMC Networks’ television series Dark Winds, which recently returned for a third season.“Dark Winds is currently in production on season four, and we see a very long life for this series that has become a franchise unto itself,” she said.When the company’s series The Walking Dead: Dead City returned for its second season, AMC+ saw its biggest single day of direct-to-consumer subscriber acquisition since last year’s season two premiere of The Walking Dead: Daryl Dixon, Dolan said.Later this year, AMC Networks plans to debut a new competitive reality show, Guts and Glory, that’s shot on the set of The Walking Dead in the woods of Georgia. The company also plans to launch an expansion of the Anne Rice universe this year, and to bring a new franchise entitled Great American stories, which will kick off with The Grapes of Wrath.
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