VOD business provides spur in strong Q3 for AMC | Major Businesses | Business
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AMC Networks is claiming that a satisfactory third quarter of 2019, driven by solidly performing existing video-on-demand services, has indicated clearly its transition to being a global content provider.
AMC walkingdead 8Oct2019
For the quarter ended 30 September 2019, the company generated net revenues of $719 million, up 3.1% on an annual basis while operating income increased 2.3% compared with the third quarter of 2018 to $168 million. Adjusted operating income increased 3.9% year-on-year to $219 million.

However, the operating income increase did reflect a decrease of 3.0% at the company’s National Networks division and a decrease of $5 million in operating loss at International and Other business. The increase in adjusted operating income reflected a decrease of 1.0% at National Networks offset by an increase of $6 million at International and Other compared with the same tune in 2018.

Operational highlights in the quarter noted by the company was what was described as continued “significant” progress with its targeted subscription VOD services including Acorn TV going past a million subscribers and the Shudder service premiering original series Creepshow to record viewership. Buoyed by the success, AMC reaffirmed its target of over two million subscribers by the end of 2019.

Also in the quarter, the company announced an agreement with Charter Communications to launch AMC Networks’ full suite of targeted SVOD services as well as AMC Premiere to Charter’s Spectrum customers. Additionally it entered into an international sales agreement with Amazon Prime Video for the third series in The Walking Dead universe.

The results showed that AMC Networks was strategically transforming itself from a ‘cable channels company’ into a premier content company said president and chief executive officer Josh Sapan: “The underlying strategic priorities fueling our transformation have been and continue to be creating and owning great content and valuable IP, expanding our targeted direct-to-consumer services, maximising the long-term value of our traditional linear business and diversifying our revenue by developing new avenues of content monetization. We are optimising the value and reach of our content in a variety of ways and executing on a plan that will enable us to thrive in a very dynamic and competitive environment.”

Net income for the nine months ended 30 September was $2.275 billion, up 3.5% annually, driving total operating income of $583.558 million, slipping back 11% on an annual basis