AMC Networks Inc - Class A

AMC Networks delivered a disappointing start to 2025, missing Wall Street expectations on both the top and bottom lines as its legacy television business continued to erode. The company posted adjusted EPS of $0.52 for Q1 2025, falling well short of the $0.81 consensus estimate by 35.47%, while revenue declined 6.9% year-over-year to $555.23 million, missing forecasts of $567.20 million by 2.11%. The most material drag came from the linear side of the business, where affiliate revenues tumbled 12% to $156.00 million on subscriber losses and unfavorable contract terms, and advertising revenues fell 15% to $119.00 million amid ratings pressure. A bright spot emerged in streaming, where revenue grew 8% to $157.00 million, driven by price increases across its portfolio of services, though the subscriber base held roughly flat at 10.2 million. The results reinforce a persistent concern among analysts that AMC Networks' heavy reliance on traditional television remains a structural headwind, even as the company pursues streaming and content licensing alternatives to stabilize its business.