AMCX - Embedded Expectations Analysis - 2021 05 14
AMC Networks Inc. (AMCX:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) earnings, with an 11.0x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may have concerns about the AMC+ streaming service, their distribution channels, and their affiliate partnershipsSpecifically, management may have concerns about their series-long arrangements with third parties, the increasing broadband-only footprint of their MVPD partners, and the uncertainties in the global marketplace. Also, they may lack confidence in their ability to grow their streaming platform, hold back advertising inventory for a strong scatter market, and improve content streaming on AMC+. In addition, they may be overstating the value of their linear portfolio to affiliates, the financial attractiveness of their streaming model, and the potential of their library content deployment on AVOD and FAST channels
AMC Networks is a holding company. Through its subsidiaries, the company is engaged in owning and operating entertainment businesses and assets. The company's operating segments are: National Networks, which includes activities of the company's programming businesses, which include programming networks such as AMC, WE tv, BBC AMERICA, IFC, and SundanceTV in the U.S., and AMC and IFC in Canada; and International and Other, which includes AMC Networks International, the company's international programming businesses consisting of a portfolio of channels; IFC Films, the company's independent film distribution business, and its subscription streaming services Acorn TV and UMC, Shudder and Sundance Now.
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