AMC Networks Inc.
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
AMCX$8.39-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001514991-25-000017
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001514991-25-000034
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 156 previous paragraphs and 183 current paragraphs.
106 unchanged; 39 reworded; 35 added; 10 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 11 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
Three and Six Months Ended June 30, 2025 and 2024
Current report
Advertising revenues decreased 16.3% in our Domestic Operations segment primarily due to linear ratings declines and lower marketplace pricing, including digital pricing. Advertising revenues decreased 17.7% in our International segment primarily due to the recognition of a $13.4 million retroactive adjustment reported and paid by a third party in the second quarter of 2024.
Current report
Technical and operating expenses (excluding depreciation and amortization) increased 1.0% in our Domestic Operations segment primarily due to higher participation and residuals costs, partially offset by a decrease in other direct programming costs and program rights amortization. Technical and operating expenses (excluding depreciation and amortization) decreased 0.9% in our International segment primarily due to a decrease in other direct programming costs.
Current report
Selling, general and administrative expenses increased 10.9% in our Domestic Operations segment primarily due to higher marketing expenses mainly driven by increased paid media spend for AMC+, higher employee related costs, and an increase in legal costs related to outstanding litigation. Selling, general and administrative expenses increased 0.9% in our International segment primarily due to higher selling expenses.
Current report
Impairment and other charges
Current report
During the second quarter of 2024, we determined that the decline in our stock price was an indicator of potential impairment of goodwill. Accordingly, we performed quantitative assessments for all of our reporting units and concluded that the fair value of the AMCNI reporting unit declined to less than its carrying amount. As a result, we recognized an impairment charge of $68.0 million, which is included in Impairment and other charges in the condensed consolidated statements of income (loss).
Current report
Additionally, during the second quarter of 2024, given continued market challenges and linear declines, we determined that sufficient indicators of potential impairment of long-lived assets existed at BBCA, and concluded that the carrying amount of the BBCA asset group was not recoverable. The carrying value of the BBCA asset group exceeded its fair value, and accordingly an impairment charge of $29.2 million was recorded for identifiable intangible assets and other long-lived assets, which is included in Impairment and other charges in the condensed consolidated statements of income (loss) within the Domestic Operations operating segment.
Current report
For the three and six months ended June 30, 2024, restructuring and other related charges of $2.9 million in our Domestic Operations segment primarily consisted of content impairments in connection with We TV shifting to a reduced originals strategy, and severance costs.
Current report
The increase in operating income was primarily attributable to a $96.8 million decrease in impairment and other charges, partially offset by a $67.1 million decrease in revenues, net and a $22.6 million increase in selling, general and administrative costs.
Current report
The decrease in interest expense was primarily due to lower outstanding balances under our Term Loan A Facility and 4.25% Senior Notes due February 2029 (the "Senior Notes"), partially offset by the impact of a full quarter of interest expense for the 4.25% Convertible Senior Notes due 2029 (the "Convertible Notes") and 10.25% Senior Secured Notes due 2029 that were issued in June 2024 and April 2024, respectively.
Current report
Gain on extinguishment of debt, net
Current report
During the second quarter of 2025, we repurchased $99.1 million principal amount of our outstanding Senior Notes through open market repurchases, at a discount of $26.7 million, and retired the repurchased notes. We recorded a $25.8 million gain which reflects the discount, net of $0.9 million to write-off a portion of the unamortized discount and deferred financing costs associated with the Senior Notes.
Current report
In June 2024, we repurchased $15.0 million of our outstanding Senior Notes through open market repurchases, at a discount of $4.9 million, and retired the repurchased notes. We recorded a $4.7 million gain which reflects the discount, net of $0.2 million to write-off a portion of the unamortized discount and deferred financing costs associated with the notes.
Current report
On April 22, 2024, we completed a cash tender offer (the "2025 Senior Notes Tender Offer") to purchase any and all outstanding 4.75% Senior Notes due 2025 and redeemed all 4.75% Senior Notes due 2025 that remained outstanding after completion of the 2025 Senior Notes Tender Offer at a price of 100.000% of their principal amount, plus accrued and unpaid interest to, but not including, the redemption date. In connection with the 2025 Senior Notes Tender Offer and redemption, we recorded a charge of $3.1 million to write-off the remaining unamortized discount and deferred financing costs associated with the 4.75% Senior Notes due 2025.
Current report
On April 9, 2024, we entered into Amendment No. 3 ("Amendment No. 3") to the Second Amended and Restated Credit Agreement, dated as of July 28, 2017 (as amended to date and by Amendment No. 3, the "Credit Agreement"). In connection with Amendment No. 3, we made a $165.6 million partial prepayment of the Term Loan A facility under the Credit Agreement (the “Term Loan A Facility”), bringing the total principal amount outstanding under the Term Loan A Facility to $425 million, and reduced the revolving credit facility under the Credit Agreement (the “Revolving Credit Facility”) to $175 million. In connection with the partial prepayment of the Term Loan A Facility and reduction of the revolving loan commitments, the Company recorded a charge of $1.3 million to write-off a portion of the unamortized discount and deferred financing costs associated with the Credit Agreement.
Current report
For the three months ended June 30, 2024, income tax expense was $10.9 million on income (loss) from operations before income taxes of $(21.4) million, representing an effective tax rate of (51)%. The effective tax rate for the three months ended June 30, 2024 was impacted by the $68.0 million nondeductible goodwill impairment charge at AMCNI. Inclusive of the nondeductible goodwill impairment charge, items resulting in variances from the federal statutory rate of 21% primarily consist of state and local income tax expense, tax expense from foreign operations, tax expense for an increase in the valuation allowance for foreign taxes and tax expense related to non-deductible compensation.
Current report
For the six months ended June 30, 2024, income tax expense was $34.5 million on income from operations before income taxes of $59.6 million, representing an effective tax rate of 58%. The effective tax rate for the six months ended June 30, 2024 was impacted by the $68.0 million nondeductible goodwill impairment charge at AMCNI. Inclusive of the nondeductible goodwill impairment charge, items resulting in variances from the federal statutory rate of 21% primarily consist of state and local income tax expense, tax expense from foreign operations, tax expense for an increase in the valuation allowance for foreign taxes and tax expense related to non-deductible compensation.
Current report
Advertising revenues decreased primarily due to linear ratings declines and lower marketplace pricing, including digital pricing.
Current report
Content licensing and other revenues increased primarily due to the sale of our music catalog and additional revenues earned in connection with the continued success and production of Silo, a series originally produced by AMC Studios for a third party, partially offset by the impact of timing and availability of deliveries in the period.
Current report
Advertising revenues decreased primarily due to linear ratings declines and lower marketplace pricing, including digital pricing.
Current report
Content licensing and other revenues increased primarily due to the sale of our music catalog and additional revenues earned in connection with the continued success and production of Silo, a series originally produced by AMC Studios for a third party, partially offset by the prior year beneficial impact associated with the sale of our rights and interests to Killing Evein the first quarter of 2024.
Current report
Technical and operating expenses (excluding depreciation and amortization) increased primarily due to higher participation and residuals costs, partially offset by a decrease in other direct programming costs and program rights amortization.
Current report
Technical and operating expenses (excluding depreciation and amortization) decreased primarily due to a decrease in other direct programming costs and program rights amortization, partially offset by higher participation and residuals costs.
Current report
Selling, general and administrative expenses increased primarily due to higher marketing expenses mainly driven by increased paid media spend for AMC+, higher employee related costs, and an increase in legal costs related to outstanding litigation.
Current report
Subscription revenues decreased primarily due to the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024 partially offset by the favorable impact of foreign currency translation.
Current report
Advertising revenues decreased primarily due to the recognition of a $13.4 million retroactive adjustment reported and paid by a third party in the second quarter of 2024 and lower digital and advanced advertising revenue in the U.K., partially offset by the impact of higher pricing in the U.K. linear advertising market and the favorable impact of foreign currency translation.
Current report
Advertising revenues decreased primarily due to the recognition of a $13.4 million retroactive adjustment reported and paid by a third party in the second quarter of 2024 and lower digital and advanced advertising revenue in the U.K., partially offset by the impact of higher pricing in the U.K. linear advertising market and the favorable impact of foreign currency translation.
Current report
Technical and operating expenses (excluding depreciation and amortization) decreased primarily due to a decrease in other direct programming costs.
Current report
Selling, general and administrative expenses increased primarily due to higher selling expenses.
Current report
We are currently evaluating our liquidity profile in connection with our consideration of our funding and investment needs. Depending on market conditions, we may purchase, redeem, prepay, refinance, amend, exchange, extend or otherwise retire any amount of our outstanding indebtedness at any time and from time to time, in open market or privately negotiated transactions with the holders of such indebtedness or otherwise. We may not proceed with any of such transactions in light of market conditions or other relevant factors and, if we do proceed, the terms of any such transaction would be subject to market and other conditions.
Current report
On July 3, 2025, we issued $400 million aggregate principal amount of 10.500% Senior Secured Notes due 2032 (the “2032 Secured Notes”). We received net proceeds of $394.5 million, after deducting initial purchaser discounts. The 2032 Secured Notes are guaranteed by AMC Network Entertainment and AMC Networks' subsidiaries that guarantee the Credit Agreement. The proceeds were used to facilitate the completion of a cash tender offer on July 17, 2025 to purchase $600.0 million of our Senior Notes, at a discount of $111.0 million, and to voluntary prepay the remaining $70.0 million of borrowings under the Term Loan A (non-extended) on July 3, 2025 with the proceeds from the issuance of the 2032 Secured Notes and cash-on-hand.
Current report
On July 4, 2025, the “One Big Beautiful Bill” act was signed into law and, while we are still evaluating the impacts of this legislation, we expect it to result in additional cash tax savings for the year ending December 31, 2025.
Current report
Net cash provided by operating activitiesfor thesix months ended June 30, 2025 and 2024 amounted to$211.6 million and$255.3 million, respectively.
Current report
Net cash used in financing activities for thesix months ended June 30, 2025 and 2024 amounted to$126.2 million and $5.9 million, respectively.
Current report
For the six months ended June 30, 2024, net cash used in financing activities primarily related to long-term debt refinancing transactions and the Convertible Notes issuance as well as distributions to noncontrolling interests of $16.5 million.
Removed paragraphs (10)
Previous report
The following table sets forth our streaming subscribers, presented under both the old definition of "aggregate paid subscriber" and the new definition of "streaming subscriber" as of each date indicated:
Previous report
(a) Originally reported as "aggregate paid subscribers". Prior to the first quarter of 2025, a paid subscription was defined as a subscription to a direct-to-consumer service or a subscription received through distributor arrangements, in which we received a fee for the distribution of our streaming services.
Previous report
(b) Primarily consists of Orange (Spain) and Philo customers at the end of the period presented that were provided access to our streaming services as part of video packages that also included access to our programming networks.
Previous report
(c) Under new definition of "streaming subscribers".
Previous report
Technical and operating expenses (excluding depreciation and amortization) decreased primarily due to lower program rights amortization.
Previous report
Selling, general and administrative expenses increased primarily due to higher employee related costs and higher marketing expenses driven by increased paid media spend for AMC+ and Acorn.
Previous report
Advertising revenues increased due to increased ratings and advertising growth in the United Kingdom, including digital and advanced advertising growth, partially offset by lower advertising revenues across our other European markets.
Previous report
Net cash provided by operating activitiesfor thethree months ended March 31, 2025 and 2024 amounted to$108.8 million and$150.9 million, respectively.
Previous report
Net cash used in financing activities for thethree months ended March 31, 2025 and 2024 amounted to$13.0 million and $23.1 million, respectively.
Previous report
For the three months ended March 31, 2024, net cash used in financing activities primarily consisted of principal payments on the Term Loan A Facility of $16.9 million and taxes paid in lieu of shares issued for equity-based compensation of $4.0 million.
Reworded paragraphs (39)
Previous wording
Consolidated Results of Operations. This section provides an analysis of our results of operations for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Our discussion is presented on both a consolidated and segment basis. Our two segments are: (i) Domestic Operations and (ii) International.
Current wording
Consolidated Results of Operations. This section provides an analysis of our results of operations for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024. Our discussion is presented on both a consolidated and segment basis. Our two segments are: (i) Domestic Operations and (ii) International.
Previous wording
Liquidity and Capital Resources. This section provides a discussion of our financial condition as of March 31, 2025, as well as an analysis of our cash flows for the three months ended March 31, 2025 and 2024. The discussion of our financial condition and liquidity also includes summaries of (i) our primary sources of liquidity and (ii) our contractual obligations that existed at March 31, 2025 as compared to December 31, 2024.
Current wording
Liquidity and Capital Resources. This section provides a discussion of our financial condition as of June 30, 2025, as well as an analysis of our cash flows for the six months ended June 30, 2025 and 2024. The discussion of our financial condition and liquidity also includes summaries of (i) our primary sources of liquidity and (ii) our contractual obligations that existed at June 30, 2025 as compared to December 31, 2024.
Previous wording
The tables presented below set forth our consolidated revenues, net, operating income (loss) and adjusted operating income (loss) ("AOI")1, for the periods indicated.
Current wording
The tables presented below set forth our consolidated revenues, net, operating income and adjusted operating income ("AOI")1, for the periods indicated.
Previous wording
•Domestic Operations: Consists of our five programming networks, our streaming services, our AMC Studios operation and our film distribution business. Our programming networks are AMC, We TV, BBC AMERICA, IFC, and SundanceTV. Our streaming services consist of AMC+ and our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE). Our AMC Studios operation produces original programming for our programming services and third parties and also licenses programming worldwide. Our film distribution business includes IFC Films, RLJ Entertainment Films and Shudder. The operating segment also includes AMC Networks Broadcasting & Technology, our technical services business, which primarily services the programming networks.
Current wording
•Domestic Operations: Consists of our five programming networks, our streaming services, our AMC Studios operation and our film distribution business. Our programming networks are AMC, We TV, BBC AMERICA ("BBCA"), IFC, and SundanceTV. Our streaming services consist of AMC+ and our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE). Our AMC Studios operation produces original programming for our programming services and third parties and also licenses programming worldwide. Our film distribution business includes IFC Films, RLJ Entertainment Films and Shudder. The operating segment also includes AMC Networks Broadcasting & Technology, our technical services business, which primarily services the programming networks.
Previous wording
Most original series require us to make significant up-front investments. Our programming efforts are not always commercially successful, which has in the past resulted and could in the future result in a write-off of program rights. If events or changes in circumstances indicate that the fair value of program rights predominantly monetized individually or as a group is less than their unamortized cost, the Company will write off the excess to technical and operating expenses in the condensed consolidated statements of income. Program rights with no future programming usefulness are substantively abandoned resulting in the write-off of remaining unamortized cost.
Current wording
Most original series require us to make significant up-front investments. Our programming efforts are not always commercially successful, which has in the past resulted and could in the future result in a write-off of program rights. If events or changes in circumstances indicate that the fair value of program rights predominantly monetized individually or as a group is less than their unamortized cost, the Company will write off the excess to technical and operating expenses in the condensed consolidated statements of income (loss). Program rights with no future programming usefulness are substantively abandoned resulting in the write-off of remaining unamortized cost.
Previous wording
Content expenses and programming operating costs primarily comprise technical and operating expenses. Content expenses represent the largest expense of the International segment and primarily consist of amortization of acquired content. Program operating costs include costs such as origination, transmission, uplink and encryption of our linear AMCNI channels as well as content hosting and delivery costs at our various on-line content distribution initiatives. Other components of technical and operating expense include costs of dubbing and sub-titling of programs. Our programming efforts are not all commercially successful, which has in the past resulted and could in the future result in a write-off of program rights. If events or changes in circumstances indicate that the fair value of program rights predominantly monetized individually or a group is less than its unamortized cost, the Company will write off the excess to technical and operating expenses in the condensed consolidated statements of income. Program rights with no future programming usefulness are substantively abandoned, resulting in the write-off of remaining unamortized cost.
Current wording
Content expenses and programming operating costs primarily comprise technical and operating expenses. Content expenses represent the largest expense of the International segment and primarily consist of amortization of acquired content. Program operating costs include costs such as origination, transmission, uplink and encryption of our linear AMCNI channels as well as content hosting and delivery costs at our various on-line content distribution initiatives. Other components of technical and operating expense include costs of dubbing and sub-titling of programs. Our programming efforts are not all commercially successful, which has in the past resulted and could in the future result in a write-off of program rights. If events or changes in circumstances indicate that the fair value of program rights predominantly monetized individually or a group is less than its unamortized cost, the Company will write off the excess to technical and operating expenses in the condensed consolidated statements of income (loss). Program rights with no future programming usefulness are substantively abandoned, resulting in the write-off of remaining unamortized cost.
Previous wording
The amounts presented and discussed below represent 100% of each operating segment's revenues, net and expenses. Where we have management control of an entity, we consolidate 100% of such entity in our condensed consolidated statements of income notwithstanding that a third-party owns an interest, which may be significant, in such entity. The noncontrolling owner's interest in the operating results of consolidated subsidiaries are reflected in net income attributable to noncontrolling interests in our condensed consolidated statements of income.
Current wording
The amounts presented and discussed below represent 100% of each operating segment's revenues, net and expenses. Where we have management control of an entity, we consolidate 100% of such entity in our condensed consolidated statements of income (loss) notwithstanding that a third-party owns an interest, which may be significant, in such entity. The noncontrolling owner's interest in the operating results of consolidated subsidiaries are reflected in net income attributable to noncontrolling interests in our condensed consolidated statements of income (loss).
Previous wording
Subscription revenues decreased 2.8% in our Domestic Operations segment due to a decline in affiliate revenues primarily due to basic subscriber declines, partially offset by an increase in streaming revenues. Subscription revenues decreased 12.1% in our International segment primarily due to the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024. We expect the linear subscriber declines to continue, consistent with the declines across the cable ecosystem.
Current wording
Subscription revenues decreased 0.7% in our Domestic Operations segment due to a decline in affiliate revenues primarily due to basic subscriber declines, partially offset by an increase in streaming revenues primarily due to the impact of price increases across our services. Subscription revenues decreased 5.1% in our International segment primarily due to the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024. We expect linear subscriber declines to continue in our Domestic Operations segment, consistent with the declines across the cable ecosystem.
Previous wording
Advertising revenues decreased 14.7% in our Domestic Operations segment primarily due to linear ratings declines. Advertising revenues increased 5.0% in our International segment due to increased ratings and advertising growth in the United Kingdom, including digital and advanced advertising growth, partially offset by lower advertising revenues across our other European markets. We expect advertising revenue to continue to decline as the advertising market gravitates toward other distribution platforms.
Current wording
Advertising revenues decreased 17.8% in our Domestic Operations segment primarily due to linear ratings declines and lower marketplace pricing, including digital pricing. Advertising revenues decreased 30.7% in our International segment primarily due to the recognition of a $13.4 million retroactive adjustment reported and paid by a third party in the second quarter of 2024. We expect advertising revenue to continue to decline as the advertising market gravitates toward other distribution platforms.
Previous wording
Content licensing and other revenues decreased 13.1% in our Domestic Operations segment primarily due to the availability of deliveries in the period, including the prior year beneficial impact associated with the sale of our rights and interests to Killing Evein the first quarter of 2024. We expect content licensing revenues to vary in 2025 based on the timing and availability of our programming to distributors.
Current wording
Content licensing and other revenues increased 26.1% in our Domestic Operations segment primarily due to the sale of our music catalog. We expect content licensing revenues to vary in 2025 based on the timing and availability of our programming to distributors.
Previous wording
Content licensing and other revenues decreased due to the availability of deliveries in the period, including the prior year beneficial impact associated with the sale of our rights and interests to Killing Evein the first quarter of 2024.
Current wording
Content licensing and other revenues increased 7.2% in our Domestic Operations segment primarily due to the sale of our music catalog during the second quarter of 2025, partially offset by the prior year beneficial impact associated with the sale of our rights and interests to Killing Evein the first quarter of 2024.
Previous wording
Technical and operating expenses (excluding depreciation and amortization) decreased 2.9% in our Domestic Operations segment primarily due to lower program rights amortization. Technical and operating expenses (excluding depreciation and amortization) increased 4.4% in our International segment primarily due to higher content expenses, primarily driven by increased program investment.
Current wording
Technical and operating expenses (excluding depreciation and amortization) decreased 0.9% in our Domestic Operations segment primarily due to a decrease in other direct programming costs and program rights amortization, partially offset by higher participation and residuals costs. Technical and operating expenses (excluding depreciation and amortization) increased 1.8% in our International segment primarily due to higher content expenses, driven by increased program investment.
Previous wording
Selling, general and administrative expenses, excluding share-based compensation, also consist of unallocated executive management and administrative support services, such as executive salaries and benefits costs, costs of maintaining corporate headquarters, facilities and common support functions. Unallocated corporate overhead costs increased 11.4% to $29.3 million primarily due to higher employee related costs, including higher bonus and severance expenses.
Current wording
Selling, general and administrative expenses, excluding share-based compensation, also include unallocated executive management and administrative support services, such as executive salaries and benefits costs, costs of maintaining corporate headquarters, facilities and common support functions. Unallocated corporate overhead costs decreased 2.7% to $30.6 million primarily due to lower employee related costs.
Previous wording
Selling, general and administrative expenses increased 7.4% in our Domestic Operations segment primarily due to higher employee related costs and higher marketing expenses. Selling, general and administrative expenses decreased 12.6% in our International segment primarily due to a decrease in corporate overhead costs allocated to AMCNI and lower selling expenses, including commissions, partially offset by higher marketing expenses.
Current wording
Selling, general and administrative expenses increased 9.2% in our Domestic Operations segment primarily due to higher marketing expenses mainly driven by increased paid media spend for AMC+, higher employee related costs, and an increase in legal costs related to outstanding litigation. Selling, general and administrative expenses decreased 5.9% in our International segment primarily due to a decrease in corporate overhead costs allocated to AMCNI and lower selling expenses, including commissions.
Previous wording
There were no restructuring and other related charges for the three months ended March 31, 2024.
Current wording
There were no impairment and other charges for the three and six months ended June 30, 2025.
Previous wording
Restructuring and other related charges were$4.8 million for the three months ended March 31, 2025, primarily related to the planned wind-down of a U.K. joint venture in our International segment. Additionally, we commenced a restructuring plan related to our International segment (the “AMCNI Plan”) designed to achieve cost reductions and streamline operations in Southern Europe, including channel re-branding and a reduction of workforce. The Company estimates it will incur approximately $5.0 million of additional restructuring charges in connection with the AMCNI Plan, which is expected to be substantially completed by the end of 2025.
Current wording
Restructuring and other related charges were$3.5 million and$8.3 million for the three and six months ended June 30, 2025, respectively, primarily related to the planned wind-down of a U.K. joint venture in our International segment and a restructuring plan related to our International segment designed to achieve cost reductions and streamline operations in Southern Europe, including channel re-branding and a reduction of workforce.
Previous wording
The decrease in operating income was primarily attributable to a $41.2 million decrease in revenues, net.
Current wording
The increase in operating income was primarily attributable to a $96.8 million decrease in impairment and other charges, partially offset by a $25.9 million decrease in revenues, net and a $13.5 million increase in selling, general and administrative costs.
Previous wording
The increase in interest expense was primarily due to an increase in average interest rates associated with the April 2024 issuance of the Company's 10.25% Senior Secured Notes due 2029 to refinance the Company's 4.75% Senior Notes due 2025, partially offset by the impact of a lower outstanding balance under our Term Loan A Facility.
Current wording
The increase in interest expense was primarily due to an increase in average interest rates associated with the April 2024 issuance of the Company's 10.25% Senior Secured Notes due 2029 to refinance the Company's 4.75% Senior Notes due 2025 and the impact of a full year of interest expense for the Convertible Notes that were issued in June 2024, partially offset by the impact of lower outstanding balances under our Term Loan A Facility and the Senior Notes.
Previous wording
The decrease in interest income was primarily attributable to lower interest income recognized in connection with our long-term content licensing receivables.
Current wording
The decrease in interest income was primarily attributable to interest received in connection with a one-time retroactive adjustment reported and paid by a third party during the second quarter of 2024, as well as lower interest income recognized in connection with our long-term content licensing receivables.
Previous wording
The increase in miscellaneous, net was primarily related to the impact of foreign currency fluctuations and higher net earnings of equity method investees.
Current wording
The increase in miscellaneous, net was primarily related to the impact of foreign currency fluctuations and the impact of prior year costs incurred in connection with the second quarter 2024 refinancing transactions.
Previous wording
Three Months Ended March 31, 2025 and 2024
Current wording
For the three months ended June 30, 2025, income tax expense was $16.1 million on income from operations before income taxes of $68.8 million, representing an effective tax rate of 23%. The variance from the federal statutory rate of 21% primarily consists of state and local income tax expense.
Previous wording
For the three months ended March 31, 2025 and 2024, income tax expense was $15.0 million and $23.6 million, respectively, representing an effective rate of 40% and 29%, respectively, as compared to the federal statutory rate of 21%. The effective rate differed from the federal statutory rate in both periods primarily due to state and local income tax expense, tax expense related to non-deductible compensation, tax expense for shortfalls related to share-based compensation and tax expense for an increase in the valuation allowance for foreign tax credits and losses.
Current wording
For the six months ended June 30, 2025, income tax expense was $31.0 million on income from operations before income taxes of $105.9 million, representing an effective tax rate of 29%. Items resulting in variances from the federal statutory rate of 21% primarily consist of state and local income tax expense, tax expense for shortfalls related to share-based compensation, tax expense for an increase in the valuation allowance for foreign taxes and tax expense related to non-deductible compensation.
Previous wording
Subscription revenues decreased due to an 11.9% decline in affiliate revenues, partially offset by an 8.3% increase in streaming revenues. Affiliate revenues decreased primarily due to basic subscriber declines and, to a lesser extent, contractual rate decreases in connection with renewals. Streaming revenues increased primarily due to the impact of price increases across our services.
Current wording
Subscription revenues decreased due to a 12.2% decline in affiliate revenues, partially offset by a 12.5% increase in streaming revenues. Affiliate revenues decreased primarily due to basic subscriber declines and, to a lesser extent, contractual rate decreases in connection with renewals. Streaming revenues increased primarily due to the impact of price increases across our services.
Previous wording
Revenues related to the Company's streaming services were $157.1 million and $145.1 million for the three months ended March 31, 2025 and 2024, respectively. Streaming subscribers were 10.2 million at March 31, 2025, the same level as March 31, 2024, and a reduction compared to 10.4 million streaming subscribers at December 31, 2024.
Current wording
Revenues related to the Company's streaming services were $169.0 million and $150.2 million for the three months ended June 30, 2025 and 2024, respectively. Streaming subscribers were 10.4 million at June 30, 2025, an increase of 2% compared to 10.2 million streaming subscribers at March 31, 2025 and June 30, 2024.
Previous wording
The decrease in segment adjusted operating income was primarily attributable to the continued revenue headwinds in our linear businesses.
Current wording
The decrease in segment adjusted operating income was primarily attributable to the continued revenue headwinds in our linear businesses, partially offset by the favorable impact of selling our music catalog.
Previous wording
Technical and operating expenses (excluding depreciation and amortization) increased primarily due to higher content expenses, primarily driven by increased program investment.
Current wording
Technical and operating expenses (excluding depreciation and amortization) increased due to higher content expenses, primarily driven by increased program investment.
Previous wording
Selling, general and administrative expenses decreased primarily due to a decrease in corporate overhead costs allocated to AMCNI and lower selling expenses, including commissions, partially offset by higher marketing expenses.
Current wording
Selling, general and administrative expenses decreased primarily due to a decrease in corporate overhead costs allocated to AMCNI and lower selling expenses, including commissions.
Previous wording
The decrease in segment adjusted operating income was primarily due to the impact of the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024.
Current wording
The decrease in segment adjusted operating income was primarily due to the recognition of a retroactive adjustment reported and paid by a third party for $13.4 million in the second quarter of 2024 and the impact of the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024.
Previous wording
As of March 31, 2025, our cash and cash equivalents balance of $870.2 million included approximately $121.4 million held by foreign subsidiaries. Of this amount, approximately $8.0 million is expected to be repatriated to the United States with the remaining amount continuing to be reinvested in foreign operations. Tax expense related to the expected repatriation amount has been accrued in prior periods and we do not expect to incur any significant, additional taxes related to the remaining balance.
Current wording
As of June 30, 2025, our cash and cash equivalents balance of $866.4 million included approximately $139.2 million held by foreign subsidiaries. Of this amount, approximately $8.0 million is expected to be repatriated to the United States with the remaining amount continuing to be reinvested in foreign operations. Tax expense related to the expected repatriation amount has been accrued in prior periods and we do not expect to incur any significant, additional taxes related to the remaining balance.
Previous wording
AMC Networks credit agreement (as amended the "Credit Agreement") generally requires AMC Networks Inc. and its restricted subsidiaries on a consolidated basis to comply with a maximum total net leverage ratio of 5.75:1.00 from April 9, 2024 through March 31, 2026, after which the maximum total net leverage ratio changes to 5.50:1.00. As of March 31, 2025, the total net leverage ratio was approximately 4.34:1.00. In addition, the Credit Agreement requires a minimum interest coverage ratio of 2.00:1.00 for AMC Networks Inc. and its restricted subsidiaries on a consolidated basis until September 30, 2026, after which the minimum interest coverage ratio changes to 2.25:1.00. As of March 31, 2025, the interest coverage ratio was approximately 2.64:1.00. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including the absence of a default and accuracy of representations and warranties.
Current wording
Our Credit Agreement generally requires us and our restricted subsidiaries on a consolidated basis to comply with a maximum total net leverage ratio of 5.75:1.00 from April 9, 2024 through March 31, 2026, after which the maximum total net leverage ratio changes to 5.50:1.00. As of June 30, 2025, the total net leverage ratio was approximately 4.45:1.00. In addition, the Credit Agreement requires a minimum interest coverage ratio of 2.00:1.00 for us and our restricted subsidiaries on a consolidated basis until September 30, 2026, after which the minimum interest coverage ratio changes to 2.25:1.00. As of June 30, 2025, the interest coverage ratio was approximately 2.46:1.00. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including the absence of a default and accuracy of representations and warranties.
Previous wording
AMC Networks was in compliance with all of its debt covenants as of March 31, 2025.
Current wording
We were in compliance with all of our debt covenants as of June 30, 2025.
Previous wording
In April 2025, the Company repurchased $31.6 million principal amount of its 4.25% Senior Notes due February 2029 through open market repurchases, at a discount of $9.3 million, and retired the repurchased notes. In May 2025, the Company voluntarily prepaid $20.0 million of borrowings under the Term Loan A Facility.
Current wording
During the second quarter of 2025, we repurchased $99.1 million principal amount of our Senior Notes through open market repurchases, at a discount of $26.7 million, and retired the repurchased notes. Additionally, in May 2025, we voluntarily prepaid $20.0 million of borrowings under the Term Loan A Facility (non-extended).
Previous wording
Our Board of Directors has authorized a program to repurchase up to $1.5 billion of our outstanding shares of Class A Common Stock (the "Stock Repurchase Program"). The Stock Repurchase Program has no pre-established termination date and may be suspended or discontinued at any time. For the three months ended March 31, 2025, we did not repurchase any of our Class A Common Stock. As of March 31, 2025, we had $135.3 million of authorization remaining for repurchase under the Stock Repurchase Program.
Current wording
Our Board of Directors has authorized a program to repurchase up to $1.5 billion of our outstanding shares of Class A Common Stock (the "Stock Repurchase Program"). The Stock Repurchase Program has no pre-established termination date and may be suspended or discontinued at any time. For the three and six months ended June 30, 2025, the Company repurchased 1.6 million shares of its Class A Common Stock at an average purchase price of $6.48 per share. As of June 30, 2025, the Company had$124.9 million of authorization remaining for repurchase under the Stock Repurchase Program.
Previous wording
For the three months ended March 31, 2025, net cash provided by operating activities primarily resulted from $241.1 million of net income before amortization of program rights, depreciation and amortization, and other non-cash items, partially offset by payments for program rights of $169.6 million. Changes in all other assets and liabilities resulted in a net cash inflow of $37.3 million.
Current wording
For the six months ended June 30, 2025, net cash provided by operating activities primarily resulted from $510.7 million of net income before amortization of program rights, depreciation and amortization, and other non-cash items, partially offset by payments for program rights of $331.5 million. Changes in all other assets and liabilities resulted in a net cash inflow of $32.4 million.
Previous wording
For the three months ended March 31, 2024, net cash provided by operating activities primarily resulted from $294.8 million of net income before amortization of program rights, depreciation and amortization, and other non-cash items, partially offset by payments for program rights of $193.0 million. Changes in all other assets and liabilities resulted in a net cash inflow of $49.1 million.
Current wording
For the six months ended June 30, 2024, net cash provided by operating activities primarily resulted from $615.6 million of net income before amortization of program rights, depreciation and amortization, and other non-cash items, partially offset by payments for program rights of $435.5 million. Changes in all other assets and liabilities resulted in a net cash inflow of $75.2 million.
Previous wording
Net cash used in investing activitiesfor thethree months ended March 31, 2025 and 2024 amounted to$14.6 million and $2.8 million, respectively, and primarily consisted of capital expenditures.
Current wording
Net cash used in investing activitiesfor thesix months ended June 30, 2025 and 2024 amounted to$22.4 million and $12.0 million, respectively, and primarily consisted of capital expenditures.
Previous wording
For the three months ended March 31, 2025, net cash used in financing activities primarily related to principal payments on the Term Loan A Facility of $8.1 million and taxes paid in lieu of shares issued for equity-based compensation of $3.7 million.
Current wording
For the six months ended June 30, 2025, net cash used in financing activities primarily related to open-market repurchases of our Senior Notes of $72.4 million, principal payments on the Term Loan A Facility of $36.3 million and the purchase of treasury stock for $10.3 million.
Previous wording
As of March 31, 2025, our contractual obligations not reflected on the condensed consolidated balance sheets decreased $34.5 million, as compared to December 31, 2024, to $560.8 million. The decrease was primarily related to payments for program rights.
Current wording
As of June 30, 2025, our contractual obligations not reflected on the condensed consolidated balance sheets decreased $79.8 million, as compared to December 31, 2024, to $515.5 million. The decrease was primarily related to payments for program rights and third-party service contracts.
Previous wording
Debt of AMC Networks as of March 31, 2025 included $875.0 million of 10.25% Senior Secured Notes due 2029, $985.0 million of 4.25% Senior Notes due 2029, and $143.8 million of 4.25% Convertible Senior Notes due 2029 (collectively, the “notes”). The notes were issued by AMC Networks and are unconditionally guaranteed, jointly and severally, on an unsecured basis, by each of AMC Networks’ existing and future domestic restricted subsidiaries, subject to certain exceptions (each, a “Guarantor Subsidiary,” and collectively, the “Guarantor Subsidiaries”). The obligations of each Guarantor Subsidiary under its note guarantee are limited as necessary to prevent such note guarantee from constituting a fraudulent conveyance under applicable law. A guarantee of the notes by a Guarantor Subsidiary is subject to release in the following circumstances: (i) any sale or other disposition of all of the capital stock of a Guarantor Subsidiary to a person that is not (either before or after giving effect to such transaction) a restricted subsidiary, in compliance with the terms of the applicable indenture; (ii) the designation of a restricted subsidiary as an “Unrestricted Subsidiary” under the applicable indenture; or (iii) the release or discharge of the guarantee (including the guarantee under the AMC Networks’ credit agreement) which resulted in the creation of the note guarantee (provided that such Guarantor Subsidiary does not have any preferred stock outstanding at such time that is not held by AMC Networks or another Guarantor Subsidiary).
Current wording
Debt of AMC Networks as of June 30, 2025 included $875.0 million of 10.25% Senior Secured Notes due 2029, $885.9 million of 4.25% Senior Notes due 2029, and $143.8 million of 4.25% Convertible Senior Notes due 2029 (collectively, the “notes”). The notes were issued by AMC Networks and are unconditionally guaranteed, jointly and severally, on an unsecured basis, by each of AMC Networks’ existing and future domestic restricted subsidiaries, subject to certain exceptions (each, a “Guarantor Subsidiary,” and collectively, the “Guarantor Subsidiaries”). The obligations of each Guarantor Subsidiary under its note guarantee are limited as necessary to prevent such note guarantee from constituting a fraudulent conveyance under applicable law. A guarantee of the notes by a Guarantor Subsidiary is subject to release in the following circumstances: (i) any sale or other disposition of all of the capital stock of a Guarantor Subsidiary to a person that is not (either before or after giving effect to such transaction) a restricted subsidiary, in compliance with the terms of the applicable indenture; (ii) the designation of a restricted subsidiary as an “Unrestricted Subsidiary” under the applicable indenture; or (iii) the release or discharge of the guarantee (including the guarantee under the AMC Networks’ credit agreement) which resulted in the creation of the note guarantee (provided that such Guarantor Subsidiary does not have any preferred stock outstanding at such time that is not held by AMC Networks or another Guarantor Subsidiary).
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Subscription revenues decreased 1.8% in our Domestic Operations segment due to a decline in affiliate revenues primarily due to basic subscriber declines, partially offset by an increase in streaming revenues primarily due to the impact of price increases across our services. Subscription revenues decreased 8.6% in our International segment primarily due to the non-renewal of a distribution agreement in Spain in the fourth quarter of 2024.
Current report — wording carried from elsewhere
Unallocated corporate overhead costs increased 3.7% to $59.9 million primarily due to higher employee related costs, including higher bonus and severance expenses.
Current report — wording carried from elsewhere
Subscription revenues decreased due to a 12.1% decline in affiliate revenues, partially offset by a 10.4% increase in streaming revenues. Affiliate revenues decreased primarily due to basic subscriber declines and, to a lesser extent, contractual rate decreases in connection with renewals. Streaming revenues increased primarily due to the impact of price increases across our services. Revenues related to the Company's streaming services were $326.1 million and $295.3 million for the six months ended June 30, 2025 and 2024, respectively.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Advertising revenues decreased primarily due to linear ratings declines.