AMC Networks jumps after stronger-than-expected adjusted profit
Investing.com | Author Liz Moyer
Published Feb 17, 2023 11:52AM ET
Updated Feb 17, 2023 12:05PM ET
By Liz Moyer
Investing.com -- AMC Networks Inc (NASDAQ:AMCX) shares jumped nearly 27% after the television and streaming services firm reported stronger-than-expected fourth-quarter adjusted profit.
Excluding charges such as the restructuring plan begun in November, fourth-quarter adjusted earnings per share of $2.52 beat the consensus forecast of $1.05 a share.
Interim Executive Chairman James Dolan said in a statement: "AMC Networks is focused on maximizing the value of our high-quality, popular content through optimized content monetization as we reduce costs and drive cash flow. We believe this approach will position the company well to navigate current industry dynamics and enable us to generate long-term shareholder value."
Revenue rose 20% in the quarter, to $964.5 million, also better than expected. Streaming revenue rose 41%. The company had 11.8M streaming subscribers at the end of the quarter. Streaming operations include AMC+, Sundance Now, and Acorn TV.
AMC Networks said advertising revenue fell 12% in the quarter because of softness in the advertising market partly offset by growth in digital and advanced advertising revenue.
The company said it tested a new pricing offer with Verizon’s +play Early Access. Verizon (NYSE:VZ) mobile and home internet 5G customers were offered a free year of Netflix (NASDAQ:NFLX) premium with the purchase of a 12-month subscription to AMC+.
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