AMC Networks' Q3 Streaming Business Provides Bright Spot On Otherwise Muted Q3 Growth, Stock Soars
Portfolio Pulse from Vandana Singh
AMC Networks Inc reported a Q3 FY23 revenue decline of 6.6% Y/Y to $636.95 million, missing the consensus of $657.80 million. U.S. ad sales were down 18% at $147 million. Affiliate revenue decreased 13% due to basic subscriber declines. However, streaming subscribers increased 4% to 11.1 million and streaming revenues of $142 million increased 9%. Adjusted EPS of $1.85 fell 11.9% YY, beating the consensus of $1.28. The company lowered its full-year 2023 revenue target from $2.8 billion to $2.7 billion. AMC shares are up 17.60% at $15.50.
November 03, 2023 | 4:16 pm
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AMC Networks reported a decline in Q3 FY23 revenue and ad sales, but saw an increase in streaming subscribers and revenues. The company lowered its full-year 2023 revenue target, but shares are up 17.60%.
Despite the decline in revenue and ad sales, the increase in streaming subscribers and revenues, as well as the beat on EPS, seem to have had a positive impact on the stock price. The lowering of the full-year 2023 revenue target could potentially have a negative impact in the future, but for now, the market seems to be reacting positively.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100