AMC Networks (NASDAQ:AMCX) reported strong subscriber growth for its streaming offering AMC+ after two quarters of declines and an earnings beat for the third quarter, sending its shares almost 13% higher on Friday morning.
The company, which produces and distributes films and television shows, said its streaming subscribers increased by 4% from 10.7 million subscribers in the year-ago quarter 11.1 million.
This represented a 1% or 100,000 increase sequentially from 11 million subscribers in 2Q.
AMC’s 3Q adjusted earnings per share of $1.85 topped estimates of $1.31.
However, revenue decreased 7% year-over-year to $637 million, below estimates of $654 million.
AMC Networks (NASDAQ:AMCX) attributed the decline to lower domestic advertising and affiliate revenues, partly offset by growth in streaming revenue.
Streaming revenues increased 9% year over year to $142 million driven by subscriber growth and a focus on higher value subscribers.
“During this period of experimentation and change in our industry, we continue to execute on our plan and effectively manage the business with a focus on high-quality programming, strong partnerships and profitability,” AMC Networks CEO Kristin Dolan said in a statement.
“In addition to introducing an ad-supported version of AMC+, we extended our leadership in TV advertising through the launch of programmatic buying on our linear networks, an industry first.”
AMC Networks shares added 12.8% at US$14.87 on Friday morning.
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