AMC reported a loss in the fourth quarter as domestic ad revenue dropped and the company took charges at its international business.
AMC had a net loss of $9 million, or 15 cents a share, in the quarter, compared with net income of $72 million, or $1.24 per share, a year ago. Revenue rose 1.6% to $785 million.
The results include a $107 million impairment charge and $11 million in charges related to restructuring at AMC Networks International.
Operating income a was down 70% to $42 million, with national networks down 12.1%, while losses at international networks and other increased to $69 million.
Revenue for the national networks were down 0.6% to $589.2 million, with distribution revenue up 5.5% to $338 million. Subscription revenue was lower. Advertising revenue dropped 7.8% to $251 million, reflecting lower ratings but higher prices for ads on a cost-per-thousand-viewers (CPM) basis.
International and other revenue was up 6.5%.
“AMC Networks achieved its key financial targets for the year, against a backdrop of a rapidly shifting media ecosystem. We continue to move our organization in a new strategic direction, from what has been a cable channels company into a premier targeted content company that is now inhabiting the traditional pay-TV ecosystem, the advanced advertising world, as well as the emerging targeted SVOD marketplace,” said CEO Josh Sapan.
“We are seeing momentum for our targeted SVOD services, which passed two million paid subscribers in the fourth quarter, as we continue to invest in strong, desirable content and valuable IP, diversify through new areas of content monetization and maximize the long-term value of our core networks and brands,” Sapan said.