AMC Networks reported a 10% decline in net revenue in 2024 compared to 2023 on Friday due to declines in linear TV subscriptions and content licensing revenue streams, despite the fact the company increased its subscriber base by 8.8% in 2024.
Net income for 2024 was reported as $2.4 billion compared to the $2.7 billion the company reported at the end of 2023. A major reason for this decline had to do with revenue declines in domestic operations and in content licensing.
Overall, revenue from domestic operations dropped by 9% during the year, coming in at $2.1 billion. This was because declines in linear television continued to impact the company, leading to a 5% decrease in subscription revenues. This was partially offset by AMC Networks’ streaming offering, which saw a 7% increase in revenue compared to 2023. Overall subscriber growth as well as subscription price increases were the reasons for that lift.
Here are the top-line results:
Revenue: $599.3 million, down 11.7% year over year for the fourth quarter. $2.4 billion, down 10% for 2024.
Net Loss Attributable to Stockholders: $284.5 million for the fourth quarter of 2024, a 1,200% change compared to the $21.8 million loss reported during the fourth quarter of 2023
Losses per Share: $6.38 for the fourth quarter of 2024, a 1,200% change compared to the $0.50 loss reported during the fourth quarter of 2023.
Subscribers: Increased 8.8% throughout fiscal year 2024 compared to 2023, hitting 12.4 million subscribers.
The company also saw a decrease in revenue from content licensing, dropping by 19% due to the availability of deliveries in the period. It should be noted that 2023 included $56 million in revenue made from “Silo,” which is an Apple TV+ show made by AMC Studios, as well as $20 million in revenue related to the return of rights from Hulu. If those two notable sources of revenue were taken out of the equation, content licensing revenues actually increased 4% compared to 2023.
Advertising was also a blow to AMC Networks, owing once again to the decline of linear television. Ad revenues decreased 11% to $561 million, a figure that was partially offset by digital and advanced advertising revenue growth.
“We are pleased and encouraged by our results in the fourth quarter and across all of 2024. We achieved our full-year guidance across all key financial metrics, including generating healthy free cash flow of $331 million,” AMC Networks CEO Kristin Dolan said in a statement included in the company’s fourth quarter earnings report.
AMC Networks ended 2023 by experimenting with its content licensing, putting some of its shows on Max and Netflix. The AMC titles put on Max “quickly became top titles in 2024,” she noted, and “The Walking Dead: The Ones Who Live” appeared in Netflix’s Top 10 list and remained there for weeks.
“We believed exposure on this massive platform would boost viewer awareness and interest in our titles, and that’s exactly what happened,” Dolan said of Netflix.
AMC was also pleased with its bundled partnership with MGM+. Last year, the company launched a two-month content exchange with the platform, which led to positive reactions from subscribers on both sides. This content swap led to “double-digit gains in engagement and acquisition” on AMC+, largely due to the temporary acquisition of the MGM+ sci-fi horror series “From.” On the MGM+ side, “The Walking Dead: Daryl Dixon” was a top performer, peaking at No. 2.
