• by Wayne Friedman , February 9, 2024

AMC Networks' advertising revenue dropped 23% to $158 million with total subscription revenue down 8% to $327 million in the fourth quarter. 

For full-year 2023, advertising revenues declined 20% to $634 million due to lower linear viewership.

Total revenue was down 30% to $679 million, with operating losses now trimmed by 97% to  $11.4 million, versus 391.6 million in the year-earlier period. 

Still, investors were not pleased -- especially with adjusted operating income (AOI) results, which came in 12% lower than the industry consensus.

For the quarter, AOI was down 27% to $100 million. As of early Friday morning, AMC stock price dropped 18% to $13.95.

“AMC Networks has been very focused on cost cuts,” says Steven Cahall, media analyst for Wells Fargo Securities. “We see the biggest risk on advertising performance given the number of originals in 2024.”

Linear TV affiliate revenue was down 16% for the period. “AMC Networks' transition into streaming continues to result in linear rate reduction -- for example, revenues down more than cord cutting,” says Cahall.

There was also some positive news -- streaming revenues rose 4% to $145 million, with streaming subscribers up 1% to 11.4 million.