AMC Networks (NASDAQ:AMCX) shares were higher in premarket trading on Friday as solid growth in its streaming division during the quarter outweighed an earnings miss.
Shares of the New York-based company, known for IFC and the Sundance Channel, were up nearly 10% on Friday morning in New York at $13.49.
During its second quarter, AMC reported an 8% decline in revenue to $679 million for the period from April to June, missing the projected $717.5 million.
AMC attributed the decrease to lower advertising sales and domestic affiliate fees.
Net income also took a hit, dropping 16% to $70.2 million, or $1.60 per share, down from $83.4 million, or $1.91 per share, in the previous year. Analysts were anticipating a profit of $1.77 per share.
Operating income for the quarter was $105.7 million, with free cash flow reaching $148 million after restructuring and related charges of $6 million.
That said, the broadcaster put out strong numbers for its streaming division, with revenue rising 13% to $137 million, driven by year-over-year subscriber growth and price increases implemented in 2022. However, streaming subscribers declined by 2% from the first quarter, ending at 11 million.
AMC reported a loss of 500,000 subscribers across its niche streaming services and a 17% decline in US ad sales for the quarter.
Still, the company said its goal of reaching 20 to 25 million streaming subscribers by 2025 remains on track, and it plans to launch an ad-supported option for AMC+ in October.
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