AMC Global Media Raises Guidance Amid Content Licensing Slump
The media company reported second-quarter net revenue of $547.5 million, a decrease of 8.8% from a year earlier.
AMC Global Media (AMCX), the media and entertainment company, reported a widening decline in revenue and operating income for the second quarter.
The results highlighted a growing divergence between the company's traditional domestic revenue streams and its international and streaming growth. While domestic licensing and affiliate fees fell sharply, the company entered a significant new partnership to bolster its long-term content valuation.
Net revenue decreased 8.8% year-over-year to $547.5 million. This represented an acceleration of the decline from the 2.4% decrease reported in the first quarter. Adjusted operating income fell 57.9% year-over-year to $46.1 million, compared to a 34.0% decline in the prior quarter.
Domestic performance was weighed down by a 33.7% plunge in content licensing revenue to $55.7 million, a sharp reversal from a 2.1% decline in the first quarter. Domestic affiliate revenue also declined 17% to $126 million. These losses were partially offset by domestic streaming revenue, which grew 6% to $180 million, though this was a deceleration from 11% growth in the first quarter.
International operations provided a counterweight, with revenue increasing 4% to $79 million. This growth accelerated from 3.3% in the first quarter, driven largely by international advertising revenue, which rose 13% to $29.4 million.
Despite the quarterly declines, the company increased its full-year guidance based on the value of its intellectual property and distribution partner relationships. AMC Global Media entered a five-year co-exclusive licensing agreement with Netflix for The Walking Dead Universe for $500 million in total fees. The company expects this deal to generate between $200 million and $225 million in annual revenue for 2026 and 2027.
Free cash flow decreased 54.8% year-over-year to $43.3 million. The company reported $1.3 million in restructuring and other related charges for the quarter, including $0.8 million tied to the international segment.
On the capital front, the company entered an accelerated share repurchase agreement on May 8, 2026, to buy back $30 million of Class A common stock. It also repaid the remaining $80 million balance of Term Loan A and terminated its revolving credit facility on May 12, 2026.