AMC Networks reported a second-quarter loss as it wrote down assets to reflect its stock price, which is down nearly 50% from its 52-week high.
The company posted a $29.2 million net loss, or 66 cents a share, compared to net income of $70.2 million, or $1.60 a share, a year ago.
The results included a $68 million impairment charge against AMC’s international operations and $29 million against BBC America.
“During the second quarter of 2024, we determined that the decline in our stock price was an indicator of potential impairment of goodwill,” the company said.
Media companies are suffering as their cash-generating traditional networks lose revenues and value as consumers turn to streaming, where most companies are .struggling to make money. Earlier this week, Warner Bros. Discovery and Paramount Global took large charges reflecting the falling value of their cable network assets.
Adjusted operating income was $152.8 million, down 13.6% and the company generated $95.2 million in free cash flow.
Revenues fell 7.8% to $625.9 million.
AMC said its domestic operations had operating income of $102.7 million, down 36.8% from a year ago. Revenue dropped 7.5% to $538.3 million.
The company said streaming revenue increased 9% to $150 million, with subscribers to AMC’s streaming services increasing by 5% to 11.6 million subscribers from a year ago.
Affiliate revenues fell 12% to $172 million amid declines in the traditional pay-TV universe.
Advertising revenues were down 11% to $149 million. The company cited linear ratings declines and a challenging ad market for the falloff.
“AMC Networks continues to find opportunities in a strategic plan built around programming, partnerships and profitability. Key to our plan is the creation and curation of celebrated films and series, and making them available to audiences everywhere, including through an exciting new branded content licensing agreement with Netflix,” CEO Kristin Dolan said.
“In the first half of 2024, we’ve made significant progress against our strategic priority of generating strong free cash flow, and we’re well on our way to achieving our free cash flow guidance for the full year,” Dolan said.
