Josh Sapan-led company whiffs on first quarter earnings forecasts
Greg Lewis/AMC/Sony Pictures Television
AMC Networks unveiled its first-quarter 2020 earnings on Tuesday, and it was not a good start to the year.
Wall Street had forecast earnings per share (EPS) of $1.86 on $738.87 million in revenue, according to a consensus compiled by Yahoo Finance. AMC reported EPS of $1.47 on revenue of $734 million.
Domestically, ad revenue decreased 10.8% on lower TV ratings.
President and Chief Executive Officer Josh Sapan said: “In what has been a unique operating environment, AMC Networks continues to generate significant levels of free cash flow and remains well capitalized with a strong balance sheet and strong liquidity. We continue to make significant progress on our digital initiatives, including strong subscriber growth across our Acorn TV, Shudder, Sundance Now and UMC (Urban Movie Channel) SVOD services, as well as Acorn TV launching in the UK. Our portfolio of networks is delivering increased viewership in recent weeks, including a strong debut of the third season of Killing Eve and strong performance for the most recent and exceptional season of Better Call Saul. Our continued investment in key areas – creating strong content and valuable IP; growing our targeted SVOD services; and maximizing the value of our linear channels – is enabling us to navigate this challenging time and will continue to serve us well when this environment stabilizes and as we look beyond this immediate period to the remainder of 2020 and ahead to 2021.”
AMC Networks stock (AMCX) closed Monday at $23.90 per share. The regular U.S. stock markets trading day opens at 9:30 a.m. ET.
More to come…
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