Media company AMC Networks beats Q2 revenue, profit estimates on price hikes, subscriber growth
Overview
AMC Networks Q2 revenue falls 4% but beats analyst expectations
Adjusted EPS of $0.69 beats estimates, driven by streaming growth
Co reduces gross debt by $400 mln through financing transactions
Outlook
AMC Networks expects $250 mln free cash flow for 2025
Company sees streaming revenue growth accelerating
AMC Networks highlights strength in content licensing
Result Drivers
STREAMING REVENUE - Streaming revenues grew 12% due to price increases and subscriber growth
CONTENT LICENSING - Content licensing revenues rose 26% due to timing and availability of deliveries
ADVERTISING DECLINE - Advertising revenues fell 18% due to linear ratings declines and lower marketplace pricing
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $600.02 mln | $582 mln (5 Analysts) |
Q2 Adjusted EPS | Beat | $0.69 | $0.61 (6 Analysts) |
Q2 EPS |
| $0.91 |
|
Q2 Adjusted Operating Income | Beat | $109.39 mln | $71.70 mln (5 Analysts) |
Q2 EBIT |
| $64.47 mln |
|
Q2 Free Cash Flow |
| $95.74 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the broadcasting peer group is "buy."
Wall Street's median 12-month price target for AMC Networks Inc is $6.00, about 0% even its August 7 closing price of $6.00
The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 2 three months ago
Press Release: ID:nGNX3j9YFj
