Vampires and Zombies help AMC Networks deliver solid Q4, 2022 results

Interview with a Vampire

AMC Networks has reported robust results for Q4 2022 – but remains concerned about the impact of the shift from linear to streaming on its business. For Q4, net revenues increased 20% year on year to $965 million while the figure for the full year was just over $3 billion (up 1%). The company now has 11.8 million streaming subscribers, which is up 700,000 on Q3, 2022. However, its operating loss stood at $392m.

AMC Networks interim executive chairman James Dolan used an earnings call to say that the industry still needs to do more work to improve its ROI from streaming. For its own part, he said AMC Networks “is focused on maximising the value of our high-quality, popular content through optimised content monetisation as we reduce costs and drive cash flow. We believe this will position the company well to navigate industry dynamics and enable us to generate long-term shareholder value.”

Comparing domestic (US) performance with international, AMC said domestic revenues in Q4 increased 26% year on year to $861 million, while ‘international and other’ revenues decreased 12% to $108 million. Internationally, advertising revenues decreased 33% to $22 million “due to the wind-down of two channels in the UK, the unfavorable impact of foreign currency translation and softer ratings in the UK.”

In terms of operational highlights, AMC lauded the success of its new Anne Rice Universe franchise with Anne Rice’s Interview with the Vampire the number one new series launch in AMC+ history and the number two new basic cable drama in 2022. The extension of The Walking Dead universe was also flagged up. The company said it had also tested an “innovative new pricing and packaging offer with Verizon’s +play Early Access, where Verizon mobile and 5G Home customers were offered 12 months of Netflix Premium for free with the purchase of a 12-month subscription to AMC+”.