If shareholders thought the 11% domestic ad-sales decline AMC Networks experienced in Q1 2020 was bad, just wait for Q2.
CFO Sean Sullivan said on Tuesday that he expects second-quarter 2020 advertising revenue at the company’s national networks to “be down in the range of approximately 30% year over year.” The company’s national networks include AMC, BBC America, IFC, SundanceTV, WE tv and AMC Studios.
That decrease will come in large part due to the coronavirus-forced production delays on the remainder of “The Walking Dead” Season 10 and the paused debut of the franchise’s new spinoff, “World Beyond.” Like every other television network, AMC’s are running out of original programming.
While AMC Networks’ TV ratings are currently up as people are forced to stay home, Sullivan says the company has been unable to monetize that growth on the Nielsen sheets. Fortunately, Sullivan expects second-quarter company expenses to decrease “in the low-to-mid teens on a percentage basis, year over year.” That will help offset at least some of the advertising revenue declines.
“The Walking Dead: World Beyond” is now set to launch in the fourth quarter. TBD on when regular ol’ “Walking Dead” can finish filming its tenth season.
Read all about AMC Networks’ first-quarter 2020 financials here.