AMC Networks reported second-quarter 2024 earnings on Friday, revealing a $97 million loss on its balance sheet, including a $68 million goodwill impairment charge in the international division and a $29 million long-term asset impairment charge at BBC America.
The quarter also saw an 11% decline in U.S. ad sales, but a slight increase in the number of subscribers to AMC Networks' streaming service across platforms, from 11.5 million at the end of the previous quarter to 11.6 million.
According to AMC Networks, “During the second quarter of 2024, we determined that a decline in our stock price was an indication that goodwill may have been impaired. Accordingly, we performed quantitative assessments of all of our reporting units and concluded that the fair value of the AMCNI reporting unit had declined below its carrying value. As a result, we recognized an impairment charge of $68 million, which was included in impairment and other charges in the condensed consolidated statements of income (loss). Additionally, the Company performed a recovery test and determined that the carrying value of the BBCA asset group exceeded its fair value, and therefore recorded an impairment charge of $29 million for identifiable intangible assets and other long-lived assets, which was included in impairment and other charges in the condensed consolidated statements of income (loss) under the Domestic Operating segment.”
Wall Street had expected earnings per share (EPS) of $1.52 on revenue of $601 million, according to analyst consensus data provided by LSEG, formerly known as Refinitiv. AMC Networks reported adjusted earnings per share of $1.24 on revenue of $625 million.
“AMC Networks continues to look for opportunities in a strategic plan built on programming, partnerships and profitability,” CEO Kristen Dolan said in a letter to shareholders. “Key to our plan is to create and curate iconic films and series, and make them available to audiences everywhere, including through an exciting new content licensing agreement with Netflix. In the first half of 2024, we made significant progress in achieving our strategic priority of generating strong free cash flow, and we are on track to achieve our full-year free cash flow guidance.”
More to come…
