AMC Networks Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, the company generated revenues of $599.6 million, a decrease of 5.9% from $637.0 million in Q3 2023. For the nine months ended September 30, 2024, revenues totaled $1.82 billion, down 10.4% from $2.03 billion in the prior year. The decline in revenue was attributed to decreased subscription revenues, which fell 6.1% in Q3 and 5.2% for the nine-month period, alongside a drop in advertising revenues due to linear ratings declines.
Operating income for Q3 2024 was $93.7 million, a 22.5% decrease from $120.9 million in Q3 2023. For the nine months, operating income fell to $214.6 million from $399.9 million, reflecting a significant impact from a $68 million goodwill impairment charge recorded in Q2 2024. Net income attributable to AMC Networks' stockholders for Q3 2024 was $41.4 million, down 34.8% from $63.4 million in the same quarter of 2023. For the nine months, net income dropped to $57.9 million from $237.3 million, marking a 75.6% decline.
The company’s cash and cash equivalents increased to $816.4 million as of September 30, 2024, compared to $570.6 million at the end of 2023. This increase was driven by improved cash flow from operating activities, which rose to $317.5 million for the nine months ended September 30, 2024, up from $131.1 million in the prior year. Free cash flow also improved significantly, reaching $293.3 million compared to $102.7 million in 2023.
Strategically, AMC Networks underwent a restructuring process, incurring $3.5 million in related charges during Q3 2024, down from $10.6 million in the same quarter of 2023. The company also completed a significant refinancing of its debt, issuing $875 million in 10.25% Senior Secured Notes due 2029 and redeeming its 4.75% Senior Notes due 2025. Additionally, AMC Networks acquired the remaining 50.1% of BBC America for $42 million, enhancing its operational control over the channel.
Overall, AMC Networks faced challenges in revenue generation and profitability, primarily due to market conditions and strategic shifts, while managing to improve its cash position and free cash flow.
About AMC Networks Inc.
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