AMC Networks reported lower first-quarter earnings as U.S. ad revenues fell 20% and the company lost 300,000 streaming subscribers.
Net income dipped to $103.6 million, or $2.36 per share, from $104.2 million, or $2.38 a share, a year ago.
The company had negative cash flow of $144 million.
Revenues rose 0.7% to $717.4 million. Distribution and other revenues rose, offsetting the loss of advertising revenue.
The number exceeded Wall Street forecasts.
At AMC’s domestic operations, operating income was flat at $199 million as revenue rose 1% to $612 million.
Distribution revenue rose 11% to $451 million.
Streaming revenue increased 29% because of year-over-year subscriber growth and higher prices.
Advertising revenue dropped 20% to $161 million as ratings dropped and the ad market softened. AMC also aired fewer original episodes during the quarter.
“AMC Networks has always been known for great content that breaks through in popular culture, receives critical acclaim and engages fans,“ CEO Kristin Dolan said. “In an environment of shifting consumption, we are committed to making our content available across the entire distribution ecosystem. While we reevaluate the pathways to content monetization, we are strategically reducing costs and streamlining our organization.
“These efforts contributed to a first quarter with strong margins and increased streaming revenue as we prioritized higher-value subscribers for our streaming portfolio,“ she added. “We remain focused on the overall profitability of the company as we continue to maintain a strong balance sheet, drive free cash flow and maximize shareholder value.”
