AMC Networks' Profits Hurt by Dish TakedownAd revenues rise 9.1% on strength of original shows 11/08/2012 09:39:54 AM Eastern
AMC Networks reported lower profits in the third quarter
after losing viewership and affiliate revenue because of its dispute with Dish
Net income was $36.6 million, or 51 cents a share, down 8.5%
from $40 million, or 55 cents a share, a year ago.
As part of last month's settlement
in a lawsuit over the Voom high-definition service (which became a part of
AMC when it was spun off from Cablevision Systems), AMC and Cablevision
received $700 million in cash and AMC's cable channels, taken down form Dish
since the summer, were restored.
Despite the Dish Network takedown, revenues rose 17% to $322
million on new digital and new licensing deals.
"We've enjoyed a long relationship with Dish Network and are
delighted to partner with them again in bringing our channels and programming
to their subscribers," said CEO Josh Sapan in a statement. "While the
litigation and associated carriage dispute impacted our third-quarter
financials, that issue is behind us and we are fully focused on continuing our
strategy of investing in quality original programming."
Sapan added: "We continue to see very healthy demand for our
popular programming from advertisers and viewers alike. We're particularly
proud of the stellar performance of AMC's The
Walking Dead, which premiered last month to become the biggest show of the
fall season among adults 18-49, outperforming broadcast and cable hits
including Modern Family, The Big Bang Theory, The Voice and Jersey Shore."
Cash flow for the company's national networks -- AMC, WE tv,
IFC and Sundance Channel -- fell 5.5% to $116.4 million.
Revenues rose 18.5% to $306.2 million. Affiliate fees rose
24.3% because of digital and licensing revenue, offset by the decline in
affiliate fees caused by the Dish takedown.
Advertising revenues rose 9.1% to $107 million. The company
said the increase was due to strong demand for original programming, primarily