AMC Networks, Inc. (NASDAQ: AMCX) is engaged as a global entertainment company, which operates the following brands: AMC Networks, AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, HIDIVE, BBC America (operated through joint venture with BBC Studios), IFC Films and more. Shares of the entertainment company are rallying 28% through early trading on Friday, February 17, 2023. Over the past three months, AMC Networks has seen average daily volume of 442,640 shares. However, volume of 804,370 shares or dollar volume of around $20.52 million, has already exchanged hands through early trading.
Shares of AMC Networks are gaining after the company released fourth quarter and full-year 2022 financial results. During the fourth quarter 2022, AMC Networks reported net revenues of $965 million, representing year-over-year growth of 20%. The TV network reported an operating loss of $392 million and adjusted operating income of $137 million. The company reported a massive diluted loss per share of $6.11, compared to diluted earnings per share of $0.39 from the same period last year. Overall, the widening operating loss included restructuring costs of $423 million.
For the full-year 2022, AMC Networks reported net revenues of $3.1 billion, which represents year-over-year growth of only 1%. On a brighter note, streaming revenues grew 35% to $502 million and with a total subscriber base of 11.8 million, as of December 31, 2022. The company reported operating income of $87 million and adjusted operating income of $738 million. Diluted earnings per share for the year came in at $0.17, with an adjusted EPS of $9.21.
AMC Networks achieved several key operational events during the period. 2022 brought about the final season of “The Walking Dead,” which concluded with AMC+’s highest single day of viewership, as the critically-acclaimed series came to a close after an eleven-year run. However, the entertainment company did release a new season of “Fear the Walking Dead,” and two new series spin-offs: “The Walking Dead: Dead City” and “The Walking Dead: Daryl Dixon.”
Luckily, AMC Networks also launched its new Anne Rice Universe franchise with “Anne Rice’s Interview with the Vampire,” which was since become a #1 new series launch on AMC+ and #2 new show on basic cable in 2022. The second series of the franchise, “Anne Rice’s Mayfair Witches,” launched in 2023 and is in-pace to be the “most viewed single season of any show on AMC+,” according to the company.
AMC Networks Interim Executive Chairman James L. Dolan noted: “AMC Networks is focused on maximizing the value of our high-quality, popular content through optimized content monetization as we reduce costs and drive cash flow. We believe this approach will position the company well to navigate current industry dynamics and enable us to generate long-term shareholder value.”
Disclosure: No position. Spotlight Growth has no relationships with any of the companies mentioned in this article and did not receive payment in any form for its creation. This is an opinion article and is not meant to be financial advise. We are not broker-dealers or investment professionals. Please conduct your own due diligence. For more information on our disclosures, please visit: https://spotlightgrowth.com/disclosures/