AMC Networks Reports 6.9% Revenue Decline and 60.6% Drop in Net Income for Q1 2025

AMC Networks Inc. reported a decline in financial performance for the first quarter of 2025, with net revenues of $555.2 million, down 6.9% from $596.5 million in the same period last year. The decrease was primarily driven by a 12.1% drop in advertising revenues and a 4.1% decline in subscription revenues. Operating income also fell significantly, decreasing 41.7% to $64.2 million compared to $110.2 million in the prior year. The company's net income attributable to stockholders was $18.0 million, a 60.6% decrease from $45.8 million in the first quarter of 2024.

In terms of operational changes, AMC Networks experienced a notable restructuring charge of $4.8 million related to the planned wind-down of a U.K. joint venture and a broader restructuring initiative in its International segment aimed at cost reductions. The company also reported a significant increase in selling, general, and administrative expenses, which rose 4.8% to $198.0 million, attributed to higher employee-related costs and marketing expenses. The total operating expenses increased slightly by 1.0% to $491.0 million, reflecting the impact of these restructuring efforts.

The company’s streaming services reported revenues of $157.1 million, up from $145.1 million in the previous year, indicating a shift in consumer preferences towards digital content. However, the overall subscriber count remained stable at 10.2 million, unchanged from the previous year but down from 10.4 million at the end of 2024. The decline in traditional affiliate revenues was attributed to basic subscriber losses, consistent with trends across the cable industry.

AMC Networks' balance sheet showed total assets of $4.3 billion as of March 31, 2025, a slight decrease from $4.4 billion at the end of 2024. The company maintained a cash and cash equivalents balance of $870.2 million, which included approximately $121.4 million held by foreign subsidiaries. The company’s long-term debt stood at $2.3 billion, with a total net leverage ratio of approximately 4.34:1.00, indicating compliance with its financial covenants.

Looking ahead, AMC Networks anticipates continued challenges in the advertising market and subscriber retention, particularly in its traditional cable operations. The company is focused on enhancing its streaming offerings and managing costs effectively to navigate the competitive landscape. The restructuring initiatives are expected to be substantially completed by the end of 2025, which may help improve operational efficiency and financial performance in the future.