AMC Networks Earnings: Despite Best Efforts, Declining Trend of Linear Television Remains a Weight

AMC continues to pursue a host of outlets for its content but none seem sufficient at this point to offset the big declines in the linear television revenue that the firm historically relied upon. Neither fourth-quarter results nor weak 2024 guidance were materially different than what we expected after adjusting for the December sale of its remaining stake in an international production services business, 25/7 Media. However, with growing skepticism that the recent rate of decline will materially improve over the next few years, we’re lowering our long-term sales and profit forecasts, resulting in our fair value estimate going down to $20 from $25.