AMC Networks reported its second-quarter 2024 earnings on Friday, reporting a reported loss of $97 million, including a $68 million goodwill impairment at its international division and a $29 million fixed asset impairment at BBC America.
In the US, advertising revenues also fell by 11% during the same period, but the number of streaming subscribers on AMC Networks’ platforms rose slightly to 11.6 million from 11.5 million at the end of the previous quarter.
According to AMC Networks, “During the second quarter of 2024, we determined that the decline in our stock price was an indicator of potential goodwill impairment. Accordingly, we performed quantitative assessments for all of our reporting units and concluded that the fair value of the AMCNI reporting unit had declined below its carrying value. As a result, we recorded an impairment charge of $68 million, which is included in impairment and other expense in the condensed consolidated statements of operations. In addition, the Company performed an impairment test and determined that the carrying value of the BBCA asset group exceeded its fair value. As a result, an impairment charge of $29 million was recorded for identifiable intangible assets and other long-lived assets, which is included in the Domestic Operations segment in impairment and other expense in the condensed consolidated statements of operations.”
According to analyst consensus from LSEG (formerly Refinitiv), Wall Street was forecasting earnings per share (EPS) of $1.52 on revenue of $601 million. AMC Networks reported adjusted earnings per share of $1.24 on revenue of $625 million.
“AMC Networks continues to find opportunity in a strategic plan built on programming, partnerships and profitability,” CEO Kristin Dolan said in a letter to shareholders. “Key to our plan is creating and curating acclaimed films and series and delivering them to viewers everywhere, including through an exciting new branded content licensing agreement with Netflix. In the first half of 2024, we made significant progress on our strategic priority of generating strong free cash flow and are on track to achieve our full-year free cash flow guidance.”
More to follow …
