Paying Off Debt Pushes AMC Earnings Lower
Revenues up 8%
Revenues up 8%
AMC reported lower earnings in the fourth quarter and
disclosed some details of the settlement of its Voom Network litigation with
Net income from continuing operations was $15 million, or 21
cents per share, down from $29 million, or 40 cents, a share. The company said
the decrease was caused by costs incurred when repaying a loan facility.
Revenues rose 8% to $367 million. Advertising revenues at
AMC's national networks -- AMC, WE tv, IFC and Sundance Channel -- were up 16%
to $157 million. Distribution revenues rose 6.8% with growth in affiliate fees
offset by lower digital revenues.
"2012 was a successful year for AMC Networks. Our continued
strategy of investing in original programming while developing strong brands
with consumers resulted in record ratings, most notably for AMC's ratings
juggernaut The Walking Dead," CEO
Josh Sapan said in a statement. "We resolved our legal dispute with Dish
Network, completed new carriage agreements with a number of leading distributors,
and expanded our relationships with key advertisers. All of which, contributed
to strong financial results for the full year and gives us confidence that we
are well-positioned for continued success in the year ahead."
AMC said that the $700 million settlement with Dish Network
was split evenly between it and Cablevision Systems. (AMC was spun off from
Cablevision, and the Dolan family that controls Cablevision also owns a
controlling stake in AMC.) But it said the final amount to be allocated to the
company was yet to be determined and "may be significantly less than $350
AMC also said that as a result of the settlement it signed a
new long-term affiliation agreement with Dish.