AMC Networks Q2 revenue misses estimates on advertising weakness

Overview

• U.S. media company's Q2 revenue fell 9% yr/yr, missing analyst expectations

• Adjusted loss per share for Q2 missed analyst consensus

• Adjusted operating income for Q2 beat analyst expectations

Outlook

• AMC Networks raises full-year guidance citing expanded licensing and renewed distribution deals

• Company expects to recognize $200 mln to $225 mln annual revenue from Netflix deal in 2026, 2027

• AMC Networks sees partner relationships and distribution channels as key drivers for future performance

Result Drivers

• AFFILIATE REVENUE PRESSURE - Co said domestic affiliate revenue declined 17% due to basic subscriber declines

• ADVERTISING WEAKNESS - Advertising revenue fell 11%, with a one-time system integration issue and lower ratings cited as factors

• CONTENT LICENSING TIMING - Content licensing revenue dropped 34% due to timing and availability of deliveries

Company press release: ID:nGNX4rccBH

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the broadcasting peer group is "buy."

• Wall Street's median 12-month price target for AMC Global Media Inc is $6.50, about 36.6% below its July 29 closing price of $10.25

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 4 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)