AMC Networks Inc. reached 9.5 million streaming subscribers, the company reported Thursday in its first-quarter earnings report.
The company increased its subscribers by about 430,000 since Q4 2021. Its subscription revenues increased 8% due to its streaming subscriber growth, though it was partially offset by “a low-single digit decrease” in linear affiliate revenues caused by declines in linear subscribers. Its SVOD platforms include AMC+, Acorn TV, Shudder, Sundance Now and ALLBLK.
Its advertising revenues increased 1% to $201 million. The company attributed that to higher pricing and digital growth, partially offset by lower linear ratings.
The company reported adjusted diluted earnings per share (EPS) of $2.54 on $712 million in total revenue. Analysts had projected EPS of $2.63 on $758 million, according to Yahoo Finance.
“AMC Networks had solid first quarter performance, highlighted by 3% total company revenue growth and continued growth of our streaming portfolio to end the quarter with 9.5 million total subscribers,” Matt Blank, AMC Networks interim CEO, said in a statement. “We continue to advance our differentiated strategy of offering streaming services that appeal to audiences with distinct affinities and passions, which is leading to strong consumer loyalty and low churn.”
The company credits the 3% year-over-year increase in its net revenue to $712 million to growth in streaming and advertising revenues.
AMC’s operating income increased 3% to $175 million. Its adjusted operating income decreased 11% year-over-year to $211 million, which it attributed to “increased content, marketing and technology investments to drive growth of our streaming and digital businesses.”
“2022 is the biggest year of original programming in AMC Networks’ history and our content continues to break through, including the recent final season premiere of ‘Better Call Saul,‘ which drove record levels of subscriber acquisition for AMC+,” Blank said. “With our content cost advantages, our ability to super serve audiences, and our clear path to profitability by virtue of our unique strategy, we are reaffirming our full year 2022 financial outlook and our target of achieving 20 million to 25 million streaming subscribers in 2025, as we continue to reconstitute our revenue mix and as we remain focused on profitability.”
According to Parrot Analytics, the currently airing final season of “Better Call Saul” has driven demand increases for the entire franchise, including its predecessor series, creator Vince Gilligan’s “Breaking Bad,” and its movie.
Shares in AMC Networks (AMCX) closed Wednesday at $35.07. The U.S. stock markets will officially reopen at 9:30 a.m. ET.