Last Friday, AMC Networks disclosed their fourth-quarter earnings for 2024, indicating a loss of approximately $268.7 million in the valuation of their U.S. cable channel operations. This business encompasses various channels such as AMC, BBC America, IFC, SundanceTV, WE tv, and IFC Films.
Simultaneously, the company reports a 8% growth in U.S. streaming revenue from October to December. By the year’s end, their combined streaming subscribers totaled 12.4 million, encompassing customers from AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE.
Throughout the entire year, AMC Networks accumulated a grand total of $399.5 million in impairments and other costs. This amount includes the previously mentioned $268.7 million goodwill charge for their domestic operations, as well as a $102 million charge for their international division, AMCNI, and an additional $29.2 million due to long-lived asset impairment charges at BBC America, which they fully acquired in November.
According to AMC Networks, the estimated fair values have decreased due to ongoing industry-wide trends such as persisting softness in the domestic linear market and international television broadcasting markets. This means less anticipated future revenue, coupled with a reduction in valuation multiples used for the Domestic Operations reporting unit, leading to the application of the market approach.
For the year, reorganization costs amounted to approximately $49.5 million. Out of this total, $44.2 million was attributed to impairment on content, while $5.3 million covered severance and employee-related expenses. When AMC Networks acquired BBC America last autumn, they incurred a restructuring charge of $43.2 million due to certain scripted original programming that no longer fit their future plans for the channel. Moreover, extra charges related to content were recorded as We TV transitioned to a strategy with fewer original productions.
Analysts predict an EPS of $1.05 from revenues of approximately $611 million, as per the collective forecast by LSEG. However, AMC Networks reported an adjusted EPS of 64 cents on a revenue of $599 million.
In a letter to shareholders, CEO Kristin Dolan expressed her satisfaction and optimism about our performance in the fourth quarter and throughout all of 2024. We met our annual financial targets for all crucial indicators, including the impressive generation of $331 million in free cash flow. This strong free cash flow performance has led us to raise our expectations, anticipating approximately $550 million in cumulative free cash flow over the next two years (from 2024-2025). We’ve formed and broadened strategic partnerships that are propelling our company forward during a time of industry-wide change. Furthermore, we’ve kept fans engaged by providing top-notch and unique content across various platforms, including our own targeted offerings and partners’. Lastly, we’ve improved our advertising business by enhancing our targeting capabilities to stand out.
More to come…
Read More
- INJ PREDICTION. INJ cryptocurrency
- SPELL PREDICTION. SPELL cryptocurrency
- How To Travel Between Maps In Kingdom Come: Deliverance 2
- LDO PREDICTION. LDO cryptocurrency
- The Hilarious Truth Behind FIFA’s ‘Fake’ Pack Luck: Zwe’s Epic Journey
- How to Craft Reforged Radzig Kobyla’s Sword in Kingdom Come: Deliverance 2
- How to find the Medicine Book and cure Thomas in Kingdom Come: Deliverance 2
- Destiny 2: Countdown to Episode Heresy’s End & Community Reactions
- Deep Rock Galactic: Painful Missions That Will Test Your Skills
- When will Sonic the Hedgehog 3 be on Paramount Plus?
2025-02-14 15:46