AMC Networks Beats Q3 Forecasts With Help From Netflix, Stock Pops

AMC Networks said a new partnership with Netflix is helping boost streaming subscribers and revenue as it posted third quarter financials that were down from the year earlier but beat Wall Street forecasts.

Content licensing revenues increased 31% to $81 million due in part to availability that started in August of deliveries in the period, including of AMC-branded shows in connection with the new Netflix deal for prior seasons of 13 AMC series, called The AMC Collection.  

The shows have performed well on the giant streamer, CEO Kristen Dolan said on an upbeat call after earnings with the stock up 9% after the numbers. It settled and is up about 5% now.

AMC+ hit 11.8 million subscribers, from 11.6 million last quarter. Streaming revenues increased 7% to $152 million.

Total company net revenues of $600 million fell 6% from the prior year. Excluding $20 million of revenues related to 25/7 Media (which AMC sold late last year), revenues were down 3%.

Net profit dropped to $41 million from $63 million.

AMC generated $293 million of free cash flow.

Other agreements include an early renewal with Charter which includes the ad-supported version of AMC+ being bundled to Charter video customers for free and the launch of 15 AMC Networks’ FAST channels on Amazon Platforms.

AMC Studios started production of the third season of The Walking Dead: Daryl Dixon and the third series in the Anne Rice Immortal Universe, The Talamasca.

On November 1, AMC acquired the remaining 50% it didn’t already own of BBC America, a joint venture with BBC Studios, for $42 million in cash.