AMC Earnings Up on Revenue Gains
Dish Network dispute could hurt future profits
By Jon Lafayette -- Broadcasting & Cable, 8/9/2012 8:57:21 AM
Net income rose 53% to $41.5 million, or 58 cents a share, from $27.1 million, or 39 cents a share, a year ago.
Revenues rose 12% to $328 million.
"In the second quarter, AMC Networks delivered solid financial results with double-digit percentage increases in net revenues, AOCF and operating income. The results were driven by continued advertiser demand and renewals with distributors, most recently AT&T, with whom we reached a new, long-term agreement," CEO Josh Sapan said in a statement.
Sapan also mentioned a dispute with another key distributor, Dish Network. "Dish Network dropped our networks to gain leverage in an unrelated lawsuit. The trial is scheduled to begin Sept. 18 in New York State Supreme Court," he said.
Dish stopped carrying Sundance Channel on May 20, and dropped AMC, IFC and WE tv on July 1.
"The termination of Dish Network's carriage will have a material impact on our revenues, AOCF and operating income in future periods," the company said. "Although Dish Network's termination has reduced the company's total subscribers by approximately 13%, the impact on our AOCF and operating income, if it continues, will be material higher.
At the company's national networks group, which includes AMC Network, WE tv, IFC and Sundance Channel, adjusted operating cash flow rose 16% to $135.6 million in the quarter as revenues rose 14.4%.
Advertising revenues rose 13.4% to $130 million led by AMC Network. Affiliate and other revenues rose 15.2% to $176 million, reflecting higher sub fees and increased digital distribution.
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