AMC Networks Stock Punished After Shaky Q4 Earnings Report; CEO Kristin Dolan Downplays M&A Scenarios, Says Plan Is To “Stick To Our Knitting” As “Marketplace Sorts Itself Out”
09.02.2024 - 18:26
/ deadline.com
Shares in AMC Networks dropped sharply in early trading Friday following a shaky fourth-quarter earnings report and a conference call with Wall Street analysts.
The stock initially drifted down by mid-single-digits in pre-market trading after the earnings release, which revealed a 23% drop in domestic ad revenue and a 16% decline in affiliate revenue. Although it was difficult to draw a direct line between management comments on the call and the stock movement later in the morning, the selloff intensified after the call. Shares fell 19% in the first hour of the trading day, to their lowest level since last October.
Execs were asked on the call to offer their guidance as to when the company’s top-line revenue might stabilize or even return to growth. “We’ve been very clear for the past year and going forward about how we’re managing the business and making it as efficient as possible,” Dolan said. “On the top line, we’re really waiting out what’s going on in the industry. What I’m happy about is we continue to produce, through [Entertainment and Studios President Dan McDermott] and the team, really high-quality content.”
Dolan cited McDermott & Co.’s presentations this week at TCA Winter Press Tour. “This is part of our ongoing strategy to own and manage franchises that we can monetize over time,” she said. “As the marketplace sorts itself out, the opportunity to grow topline in the out years continues to be there. I think it’s just going to settle. We’re sort of sticking to our knitting. …. We’re going to stick to the plan and we’re optimistic that over the next year to two years that the ship will right itself in our industry and things will open up again.”
While AMC Networks is often mentioned as a potential M&A
The website popstar.one is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can
send a complaint on the news if you find it unreliable.