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AMC Networks' Profits Hurt by Dish Takedown

Ad 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
Network.

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
at AMC.

March