Analyst Note| Neil Macker, CFA |
AMC reported very strong third-quarter results as revenue and adjusted EBITDA blew out FactSet consensus expectations. Ad revenue in the U.S. posted growth for the second straight quarter, a positive sign given the declines in the previous eight quarters. The streaming strategy of focusing on superfans of niche programming appears to be working, as AMC’s services are on pace to end 2021 with over 9 million subscribers and ahead of the pace needed to meet the target of 20-25 million subscribers in 2025. We are maintaining our narrow moat and $58 fair value estimate.