AMC Earnings Up on Revenue GainsDish Network dispute could hurt future profits 8/09/2012 08:57:21 AM Eastern
AMC Networks reported higher earnings in the second quarter,
but warned its dispute with Dish Network could hurt profits in the future.
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.