• by Wayne Friedman , February 17, 2023

Amid disruptive changes with its top executive departing and a potential sale of the company, mid-size cable and streaming network group AMC Networks posted a strong 20% gain in revenue to $965 million in the fourth quarter.

At the same time, “adjusted operating income” surprisingly grew 34% to $137.4 million as a result of lower marketing spend and increased revenues.

The news drove its stock price up 23% to $25.12 in early Friday trading.

According to recent news reports, a year and a half ago, streaming distribution platform Roku approached the company about a possible sale.

AMC's results were not totally positive, as the company posted an operating loss of six times that of the fourth quarter of 2021 to $392 million due to streaming and restructuring costs.

Streaming revenues from its collection of streaming platforms, including AMC+, were up 7%. For the year, streaming revenue was 35% higher to $502 million to total 11.8 million subscribers as of December 31, 2022.

AMC's overall company-wide advertising revenues sank 12% to $206 million, due to lower linear ratings -- as well as weakening ad-marketplace conditions.

In a double whammy for AMC, its traditional cable TV networks were hit with sinking affiliate revenues, down 5.8%.

Internationally the picture was much the same, with revenues down 4% to $108 million for the quarter. Advertising revenues were in a sharp 33% fall.

Two days ago, AMC Networks named Kristin Dolan, wife of executive chairman James Dolan, as CEO. The appointment comes just months after former CFO Christina Spade stepped down following a brief stint as CEO, replacing interim CEO Matt Blank.