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1. Company Snapshot

1.a. Company Description

AMC Networks Inc., an entertainment company, owns and operates a suite of video entertainment products that are delivered to audiences and a platform to distributors and advertisers in the United States and internationally.The company operates in two segments, Domestic Operations, and International and Other.The Domestic Operations segment operates various national programming networks, including the AMC, WE tv, BBC AMERICA, IFC, and SundanceTV; provides subscription streaming services comprising Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, as well as AMC+ and other streaming initiatives; and engages in film distribution business under the IFC Films name.


This segment also produces and licenses original programming for various programming networks, as well as services the national programming networks.The International and Other segment operates a portfolio of channels under the AMCNI name; and production and comedy venues activities under the Levity name.AMC Networks Inc.


was founded in 1980 and is headquartered in New York, New York.

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1.b. Last Insights on AMCX

AMC Networks' recent performance was positively driven by the extension of Chief Content Officer Dan McDermott's contract through 2028, indicating stability in content leadership. The company's focus on emerging as a "modern media business" with streaming gains also buoyed investor sentiment. Additionally, its cash cushion of $866 million and $250 million in annual free cash flow supports liquidity, making it a potential takeover target with low enterprise valuations and robust gross profit margins. (Source: Guggenheim Securities)

1.c. Company Highlights

2. AMC Networks' Q3 2025 Earnings: A Mixed Bag

AMC Networks reported a mixed third-quarter 2025 performance, with consolidated net revenue declining 6% year-over-year to $562 million, and domestic operations revenue decreasing 8% to $486 million. However, the company delivered $42 million in free cash flow, putting it on track to achieve its increased guidance of $250 million for the full year. The actual EPS came out at $0.18, missing estimates of $0.31.

Publication Date: Nov -20

📋 Highlights
  • Free Cash Flow Progress:: Delivered $42 million in Q3, on track for $250 million annual guidance, reflecting strong operational efficiency.
  • Streaming Growth Offset Declines:: 14% revenue increase to $X million (with 10.4 million subscribers) balanced affiliate revenue drops, stabilizing domestic subscriptions.
  • Debt Reduction Actions:: Repurchased $9 million in debt and paid down $166 million in Term Loan A, aligning with long-term debt reduction goals.
  • Advertising Momentum:: 40% digital ad growth during upfront, driven by 850,000 ad-supported Charter subscribers, despite no FAST revenue breakdown.
  • Margin Expansion Targets:: Aiming for mid- to high-20% long-term margins, leveraging dual-use programming and cost-efficient streaming assets like Acorn.

Revenue Mix and Streaming Growth

The decline in consolidated revenue was largely due to a decrease in affiliate revenue, which was partially offset by a 14% growth in streaming revenue. The company's streaming subscribers stood at 10.4 million, with stable domestic subscription revenues. International segment revenue was $77 million, with subscription revenue declining 6% due to a non-renewal with Movistar in Spain.

Debt Reduction and Capital Allocation

AMC Networks continued to focus on reducing its gross debt, repurchasing $9 million of its unsecured senior notes and paying down $166 million of its Term Loan A. The company reiterated its 2025 outlook, expecting consolidated revenue of approximately $2.3 billion and consolidated AOI in the range of $400 million to $420 million.

Valuation and Growth Prospects

With a P/E Ratio of -2.08 and an EV/EBITDA of -0.37, the market is pricing in significant growth prospects for AMC Networks. However, analysts estimate next year's revenue growth at -1.9%, indicating a challenging environment for the company. The company's focus on creating and acquiring compelling programming, reducing gross debt, and extending debt maturities is expected to drive free cash flow and maintain healthy levels of margin expansion.

Streaming and Advertising Strategy

AMC Networks is focused on being a wholesale streamer, passing on costs to distribution partners, and using technology to drive efficiency. The company saw 40% growth in digital advertising during the upfront, aided by 850,000 ad-supported Charter subscribers. The growth in FAST channels is creating more digital inventory, and the company is experimenting with click-through purchases of streaming services from FAST channels.

3. NewsRoom

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AMC Networks Extends Content Chief Dan McDermott's Contract Through End Of 2028

Nov -20

Source: deadline.com

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AMC Networks Launching All Reality Subscription Streaming Outlet Via Prime Video Channels

Nov -18

Source: deadline.com

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AMC Networks Inc. (AMCX) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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AMC Networks (AMCX) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Nov -07

Source: zacks.com

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AMC Networks Sheds 5% Of Global Workforce Via Voluntary Buyouts

Nov -07

Source: deadline.com

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AMC Networks (AMCX) Lags Q3 Earnings Estimates

Nov -07

Source: zacks.com

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AMC Networks Ad & Affiliate Revenue Keeps Sliding In Q3, But CEO Sees “A Modern Media Business” Emerging

Nov -07

Source: deadline.com

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AMC Networks Inc. Reports Third Quarter 2025 Results

Nov -07

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.67%)

6. Segments

Domestic

Expected Growth: 3.47%

AMC Networks Inc.'s domestic segment growth of 3.47% is driven by increasing demand for its popular TV shows, such as The Walking Dead, and expansion of its streaming services, including AMC Premiere and Acorn TV. Additionally, the company's focus on niche audiences and targeted advertising has contributed to revenue growth.

International and Other

Expected Growth: 4.8%

AMC Networks Inc.'s International and Other segment growth of 4.8% is driven by increasing demand for its content in emerging markets, expansion of its streaming services, and strategic partnerships with local broadcasters. Additionally, the company's focus on producing high-quality, globally appealing content and its ability to adapt to changing viewer habits also contribute to its growth.

Corporate / Inter-segment Eliminations

Expected Growth: 4.63%

AMC Networks Inc.'s 4.63% growth in Corporate/Inter-segment Eliminations is driven by increased affiliate fees, robust advertising revenue, and strategic cost savings initiatives. Additionally, the company's focus on producing high-quality content, expanding its international presence, and investing in digital platforms have contributed to this growth.

7. Detailed Products

AMC

AMC is a popular cable television channel that offers a wide range of programming, including original series, movies, and documentaries.

IFC

IFC is a cable television channel that focuses on comedy, satire, and alternative programming.

WE tv

WE tv is a cable television channel that targets women and focuses on reality TV, scripted series, and movies.

SundanceTV

SundanceTV is a cable television channel that focuses on independent films, documentaries, and original series.

Sundance Now

Sundance Now is a streaming service that offers a wide range of independent films, documentaries, and original series.

Shudder

Shudder is a streaming service that specializes in horror, thriller, and suspense content.

Acorn TV

Acorn TV is a streaming service that offers a wide range of British and international TV shows and movies.

UMC (Urban Movie Channel)

UMC is a streaming service that offers a wide range of urban-focused TV shows and movies.

AMC Studios

AMC Studios is a production company that produces original content for AMC Networks' channels and streaming services.

8. AMC Networks Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for AMC Networks Inc. is medium due to the availability of alternative entertainment options such as streaming services and social media platforms.

Bargaining Power Of Customers

The bargaining power of customers for AMC Networks Inc. is low due to the company's strong brand recognition and loyal customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for AMC Networks Inc. is medium due to the company's dependence on a few major suppliers for content creation and distribution.

Threat Of New Entrants

The threat of new entrants for AMC Networks Inc. is high due to the low barriers to entry in the entertainment industry and the increasing popularity of streaming services.

Intensity Of Rivalry

The intensity of rivalry for AMC Networks Inc. is high due to the highly competitive nature of the entertainment industry and the presence of established players such as Netflix and Disney+.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 70.32%
Debt Cost 3.95%
Equity Weight 29.68%
Equity Cost 10.06%
WACC 5.76%
Leverage 236.88%

11. Quality Control: AMC Networks Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sinclair Broadcast Group

A-Score: 5.4/10

Value: 7.2

Growth: 4.4

Quality: 4.5

Yield: 10.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Marcus

A-Score: 4.8/10

Value: 7.4

Growth: 4.0

Quality: 4.6

Yield: 3.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Cinemark

A-Score: 4.6/10

Value: 6.0

Growth: 5.2

Quality: 5.2

Yield: 1.0

Momentum: 4.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
AMC Networks

A-Score: 4.5/10

Value: 9.8

Growth: 3.1

Quality: 4.9

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Gaia

A-Score: 3.8/10

Value: 5.7

Growth: 4.0

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Dave & Buster's

A-Score: 3.1/10

Value: 6.3

Growth: 5.9

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.03$

Current Price

9.03$

Potential

-0.00%

Expected Cash-Flows