AMC Networks Withdraws 2020 Financial Guidance, Citing Uncertainty Amid Coronavirus Crisis
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AMC Networks is the latest company to warn that its financial outlook has become impossible to predict with the coronavirus pandemic and resulting economic turmoil.
The cable programmer and media company in an SEC filing Friday said it was pulling guidance for the first quarter of full year of 2020, and that it is “not providing an updated fiscal outlook at this time.”
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“The impact of the novel coronavirus (‘COVID-19’) and measures to prevent its spread are affecting our businesses in a number of ways,” AMC Networks said. “To date, we have experienced adverse advertising sales impacts and suspended content production, which has led to delays in the creation and availability of some of our television programming.”
The company added, “At this time, we cannot predict the duration of and degree to which supply and demand for our products and services, including advertising, will be affected. This makes it challenging for management to estimate the future performance of our businesses, particularly over the near to medium term. However, the COVID-19 pandemic could have an adverse impact on our business, results of operations and financial condition, including during the near to medium term.”
For the fourth quarter of 2019, AMC Networks revenue of $785 million, up 1.6% from the year-ago period, topping Wall Street expectations. Adjusted operating income fell 8.7% to $200 million. The company swung to a $8.6 million net loss, which included write-downs of $107 million in the International and Other division and $11 million in restructuring charges.
As of Dec. 31, 2019, the company had $816 million of cash and cash equivalents. AMC said it currently has access to a committed $500 million revolving credit facility.
AMC’s cable networks include AMC, WE tv, BBC America, IFC and SundanceTV. The business includes the AMC Studios television production business; international programming operations; and subscription streaming services Acorn TV, Shudder, Sundance Now and UMC (Urban Movie Channel).
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