Analyst Note| Neil Macker, CFA |
AMC started 2021 with a mixed first quarter as revenue fell just short of Visible Alpha consensus expectations but operating income blew past them. The top-line decline for the firm was attributed to the timing of content licensing, but advertising revenue in the U.S. fell for the eighth straight quarter. The niche subscription video on demand platforms like Acorn and Shudder, along with AMC+, continue to see increased demand with the services on pace to end 2021 with over 9 million subscribers, up 50% from the end of 2020. We are maintaining our narrow moat rating and $58 fair value estimate.