• by Wayne Friedman , October 31, 2019

AMC Networks posted negative results for both advertising and affiliate/subscription revenue -- a rare occurrence for a TV network group.

Advertising revenue from its U.S networks was down 2.6% to $194 million for its fiscal third-quarter period, in line with analysts' estimates. Lower viewership as well as the timing of its big TV shows were the major reasons for the decline, according to AMC.

And while AMC’s distribution revenue was up 1.1% to $365 million, the increase came from content licensing revenues, according to the company. These total results were "partially offset by a decrease in subscription revenues."

On a positive note, AMC said for the year overall, it will be adding two million subscribers from subscription video-on-demand services.

Todd Juenger, media analyst of Bernstein Research, said this is not good news overall: “We believe this is the first quarter where the company has specified in the press release a decrease in subscription.” He adds that now core advertising and affiliate fees are now running “negative."

He adds: “Negative subscription revenues are about the worst thing that can happen to a cable networks company. Two million subscribers to niche SVOD services will not overcome that.”

AMC's U.S networks revenue slipped 0.2% to $559 million, with international channels up 21% to $182.8 million. For the quarter, overall revenues gained 3.1% to $719 million, while net income improved 5% to $117 million.

In Thursday morning trading, AMC stock was down 5% to $41.59.