AMCX Q1 Earnings Call: Streaming Strategy and Linear Headwinds Shape Results

Television broadcasting and production company AMC Networks (NASDAQ:AMCX) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 6.9% year on year to $555.2 million. Its non-GAAP EPS of $0.52 per share was 35.5% below analysts’ consensus estimates.

Is now the time to buy AMCX? Find out in our full research report (it’s free).

StockStory’s Take

AMC Networks’ latest quarter reflected the ongoing shift in the media landscape, as management highlighted the company’s focus on programming, partnerships, and profitability. CEO Kristin Dolan pointed to the launch of ad-supported streaming options and evolving distribution partnerships, such as the integration of AMC+ with Charter and Philo, as key factors impacting current results. CFO Patrick O’Connell emphasized changes in how streaming subscribers are defined and counted, affecting reported metrics but aligning the company’s reporting with industry practices. Management also cited mixed advertising trends, with linear TV ad revenue pressured by declining ratings and digital ad sales facing increased supply and pricing competition.

Looking forward, AMC Networks’ strategy centers on expanding its streaming portfolio, introducing new ad-supported offerings, and leveraging franchise content to drive engagement. Management expects streaming revenue growth to accelerate through price increases and new series launches, while further content licensing deals are anticipated to support results later in the year. O’Connell stated, “The streaming revenue growth that we articulated as part of the guidance was largely predicated on pricing as opposed to volume.” Leadership also described a “partner-centric approach” in distribution, aiming to broaden reach while maintaining profitability, but acknowledged ongoing industry uncertainties and the need for cost discipline as the company navigates evolving consumer and advertising trends.

Key Insights from Management’s Remarks

Management attributed the latest quarter’s performance to evolving distribution models, content franchise momentum, and challenges in digital and linear ad markets, while highlighting strategic investments in programming and partnerships.

• Ad-supported streaming expansion: AMC Networks launched an ad-supported version of AMC+ with Charter and announced upcoming ad-supported offerings for Shudder, aiming to provide partners and viewers with more flexibility and broader access to content.
• Content franchise development: The company advanced several franchises, including Dark Winds (with increased direct-to-consumer acquisition and critical acclaim) and The Walking Dead universe, which continues to drive engagement and subscriber acquisition across platforms.
• Updated streaming metrics: AMC refined its definitions for streaming subscribers and revenue, now focusing on “a la carte” subscriptions and excluding bundled customers from the subscriber count, which management believes will better reflect the quality and intent of its streaming customer base.
• Advertising market pressures: Linear advertising revenue was impacted by lower ratings, while digital ad sales faced industry-wide pricing pressures due to increased supply. Management noted a continuing shift in viewership to digital and FAST (Free Ad-supported Streaming TV) channels, where AMC operates 19 channels across 12 platforms.
• International and licensing dynamics: The company experienced subscription revenue declines in its international segment, largely due to the non-renewal of a major partnership in Spain, but is offsetting the impact with new local partnerships and expects content licensing revenue to remain lumpy due to deal timing.

Drivers of Future Performance

AMC Networks expects streaming price increases, new content launches, and partnership-driven distribution to underpin revenue and margin trends in upcoming quarters, while monitoring industry challenges.

• Streaming revenue acceleration: Management projects streaming revenue growth will pick up through a series of price increases at services like AMC+, Shudder, Acorn, and HIDIVE, combined with targeted marketing and new content debuts, rather than relying on significant subscriber growth.
• Advertising and content licensing: The company anticipates advertising revenue to remain challenged by linear and digital market dynamics, but expects stabilization through upfront sales, advanced digital ad tools, and increased inventory from expanding FAST channels. Content licensing is expected to rebound as large deals shift between quarters.
• Disciplined cost management: Leadership emphasized ongoing cost discipline, with content spending and amortization projected to be flat or slightly down year over year. The company is also investing in technology upgrades and operational efficiency to support long-term profitability, while remaining flexible in response to macroeconomic and industry shifts.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will focus on (1) the effectiveness of streaming rate increases and new ad-supported offerings in driving revenue, (2) trends in digital and linear advertising demand as the broader market evolves, and (3) the timing and scale of content licensing deals. We will also track execution on cost initiatives and the audience response to upcoming franchise content releases.

AMC Networks currently trades at a forward P/E ratio of 2.2×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it’s free).

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