AMC Networks Inc.NASDAQ
AMC Networks: The Price Is Much More Logical, But Risks Continue
Vince Martin • 14 Comments
Vince Martin • 14 Comments
Thu, Nov. 3, 1:44 PM
- AMC Networks (NASDAQ:AMCX) has erased morning losses and then some, now up 3.7%, after its Q3 earnings beat expectations despite revenues that inched up and disappointed.
- The shares had hit a four-year-low of $46.17 earlier today.
- At its national networks (AMC, WE TV, BBC America, IFC and SundanceTV) revenues grew fractionally powered by an 8% rise in distribution revenues, primarily due to increases in licensing as well as some increase in affiliate fees. Ad revenues, meanwhile, fell 10% on lower ratings at AMC.
- The international business was relatively flat, as an increase at AMC Networks International was offset by a decrease at IFC Films.
- Revenue by segment: National Networks, $525.7M (up 0.8%); International and other, $114M (down 0.1%).
- Adjusted operating income by segment: National Networks, $162.5M (down 12.9%); International and other, $10.95M (up 62.3%).
- Press Release
Thu, Nov. 3, 8:34 AM
Wed, Nov. 2, 5:30 PM
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Tue, Oct. 25, 7:38 PM
- On a week where AMC's (AMCX +4.1%) The Walking Dead returned to action and nearly bested NFL football, CBS (CBS -0.6%) did what it does, and led prime-time ratings again.
- The network came in first for the week with an average of 9.9M viewers, ahead of NBC (CMCSA -0.7%) with 7.7M. ABC (DIS -0.7%) averaged 5.4M viewers and Fox (FOX, FOXA) 3.1M. NBC led the coveted 18-49 demographic.
- In cable, Fox News was the leader again, with 3.21M viewers, ahead of AMC's zombie-boosted 2.172M and CNN's (TWX +0.5%) 2.169M. ESPN fell in fourth place with 2.14M viewers, ahead of MSNBC's 1.78M.
- Among individual programs, The Walking Dead's 17M was only topped by NBC's broadcast of the Seattle Seahawks-Arizona Cardinals game (17.7M). Rounding out the next five programs, it was all CBS: 60 Minutes, with 15.99M; NCIS, with 14.77M; Chicago at Green Bay football, 14.2M; The Big Bang Theory, 14.2M; Bull, 12.3M.
Tue, Oct. 25, 6:22 PM
- A much-anticipated return of The Walking Dead, flagship series for AMC (AMCX +4.1%), drew just over 17M viewers Sunday night -- just short of the most-watched episode ever.
- For now, that is; AMC thinks this episode will be most watched after more digital and delayed viewing is added back. And it provides a sigh of relief after worries about flagging ratings at the network's cash cow.
- The episode so far is just short of the 17.3M who watched the 2014 season premiere. And it comes on one of the goriest episodes of the series.
- In the coveted 18-49 demographic, the premiere drew 10.7M viewers, beating the season's previous big draw in that demo (The Big Bang Theory premiere, with 6.5M).
- Talking Dead, the live talk show after the episode, also drew its record with 7.6M viewers.
Sun, Oct. 23, 10:24 AM
- Discovery Communications (NASDAQ:DISCA), Scripps Networks (NYSE:SNI), AMC Networks (NASDAQ:AMCX), Lions Gate (NYSE:LGF), Viacom (VIA, VIAB), and CBS already had their tails in the air on Friday afternoon as merger talk between AT&T and Time Warner heated up.
- Previously: AT&T seals $85.4B deal for Time Warner (Oct. 23)
Fri, Oct. 21, 12:02 PM
- Time Warner (TWX +12.4%) is still climbing and cruising to 15-year highs after the WSJ report that it's in advanced talks to be taken over by AT&T (T -3.9%), which is now at its lowest point since February.
- The deal -- which would create a media/telecom giant that would reshape the industry -- would be likely cash and stock, though talks are fluid and might not end in a deal.
- The mix of the deal is likely crucial to its outcome, with Time Warner (not to be confused with Time Warner Cable, now part of Charter Communications) now worth more than $75B -- and a year after AT&T ponied up nearly $49B to take over DirecTV.
- Other potential acquisition targets in media (is anything off the table in a rapidly consolidating sector?) are on the move: DISCA +6.4%, SNI +5.6%, AMCX +4.3%. Lions Gate (NYSE:LGF) made its own move up, +2.4%.
- Engaged in talks about their own re-merger, Viacom (VIA +2.8%, VIAB +4.1%) is up, as is erstwhile and possibly future partner CBS (CBS +2.7%).
Mon, Oct. 17, 8:24 AM
- RLJ Entertainment (NASDAQ:RLJE) and AMC Networks (NASDAQ:AMCX) announce a strategic partnership to help develop and build out streaming services.
- As part of the agreement, AMC Networks has invested $65M in the form of loans to RLJ Entertainment to bolster the company's financial profile. In addition, AMC Networks has received warrants which wil provide AMC Networks with at least 50.1% of the outstanding RLJ Entertainment common stock if exercised in full.
- RLJE +10.0% premarket to $2.20.
- Source: Press Release
Fri, Oct. 14, 6:29 PM
- AMC Networks (NASDAQ:AMCX) sealed a new contract with Chief Operating Officer Edward Carroll that runs through the end of 2021.
- Carroll gets a raise to $1.7M in base salary as of Sept. 1, 2016, "subject to annual review and potential increase," as well as an annual target bonus opportunity of 175% of base.
- For this year, he also got long-term equity awards with a target value of $150K, and beginning next year he's expected to receive long-term cash and/or equity awards totaling at least $3.4M.
- Carroll also got a one-time awards of restricted stock units with target value $12.5M, which vests (with few exceptions) at the end of the deal.
- SEC filing
Tue, Sep. 27, 6:31 PM
- AMC Networks (AMCX -2%) has set up its new team to manage international programming.
- Kristin Jones, senior VP of international programming for AMC, is in charge of managing programming and co-productions for AMC TV and SundanceTV. The company's adding Chris Loveall as VP to help with development and acquisitions.
- Jones, who help nab shows including The Night Manager and Humans for AMC, will continue to report to programming president Joel Stillerman.
Wed, Sep. 21, 4:00 PM
- AMC Networks (AMCX +0.9%) CEO Josh Sapan pointed to history in describing the company's continuing strategy at the Communacopia Conference: The company spun out from Cablevision in 2011 with about $1B in revenue and EBITDA around $450M; since then, run-rate revenue has tripled and EBITDA about doubled.
- The competitive environment is more cluttered, Sapan admits, and while there was some question about how the company would respond after the ends of hits Mad Men and Breaking Bad, "Cable dramas, of the top 10, we have five of them. So that's a pretty good place to be ... all of them new entrants, in the past 24 months."
- AMC gets flexibility from dependence on not two, but three revenue streams: Advertising, affiliate fees, and the sale of shows. "When we begin a series, pick a number, say $3M/hour ... we are able to, with certainty, bring the reliance on U.S. variable dollars like advertising way down if it's been sold to international SVOD (subscription video on demand) ... it allows us to increase our volume."
- He contrasted the company's approach to SVOD with that of rivals in terms of friendliness to pay TV. "We do sell to SVOD domestically; Netflix, notably, and Hulu. We are more deliberate and more careful and more restrained than some," with shows appearing on AMC (or IFC, SundanceTV, BBC America) and then "about a year later will go to U.S. domestic SVOD ... that's a long delay.
- "Others put them on very quickly. We've been pretty consistent in trying to provide real value to MVPDs (multichannel video programming distributors) who ... pay our license fees and brought us to the dance. That yearlong advance window we think is pretty important to them." Sapan says vs. competitors, AMC's channels are "dramatically underpriced" compared to what's delivered.
- Ads may hiccup this quarter but rebound in Q4, he says. "We just finished a very good upfront ... advertisers are trying to reach our demo." The company's seeing "increasing CPM, very very high demand, on a very good trajectory ... in Q3 we saw a hiccup, but any given show, any given 90 days you're going to see those things. Q4 should be a good quarter."
Thu, Aug. 4, 8:07 AM
Wed, Aug. 3, 5:30 PM
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Mon, Aug. 1, 4:37 PM
- AMC Networks (NASDAQ:AMCX) has named Christian Wymbs executive VP and chief accounting officer, effective today.
- He'll succeed Chief Financial Officer Sean Sullivan in that role, and report to Sullivan. Wymbs will have oversight of corporate accounting, financial reporting and tax functions.
- Wymbs comes to AMC from American Express, where he was most recently CFO of its Global Commercial Services business.
Fri, Jul. 15, 2:03 PM
- Network stocks CBS, Discovery Communications and AMC Networks have headed lower today as UBS downgrades them in a new update.
- CBS fell 3.1%, erasing the past week's gains, as analyst Douglas Mitchelson suggested ad strength is priced in and might wane in the second half, especially amid the intensifying competition of presidential campaign ad season.
- UBS downgraded it to Sell from Neutral and kept a $52 price target (about 7% downside from today's lower price).
- Similarly, second-half concerns weigh on Discovery (DISCA -2.3%) and AMC (AMCX -4%) as Michelson worries about their ability to diversify away from focus strengths, and downgrades to Sell In AMC's case, it will need a hit to replace a weakening The Walking Dead; and UBS is concerned that neither AMC nor Discovery can make it into a new skinny bundle from Hulu.
- AMC is sitting just 3.5% over its 52-week low, while Discovery is just 6.2% over its 52-week low.
Thu, May 5, 2:08 PM
- AMC Networks (NASDAQ:AMCX) has gained 5.6% on heavy volume today after posting earnings that beat expectations solidly, with strength from licensing its content.
- Strong growth in its national networks (AMC, WE tv, BBC America, IFC and SundanceTV) was paced by distribution revenues that grew 10.7% to $335M, which includes digital distribution and licensing fees as well as increasing affiliate fees.
- Revenue by segment: National networks, $598.6M (up 6.4%); International and other, $109M (up 2.5%). Adjusted operating cash flow was up 10.9% in National networks to $280.95M, down 10.1% to $5.11M internationally.
- International results showed some surprising strength, with AMC Networks International showing gains partly offset by declines at IFC Films.
- Now read AMC Networks Still Doesn't Look Cheap »