AMC Networks reported lower fourth quarter profits amid costs for restructuring and acquisitions.
Net income dropped to $72 million, or $1.24 per share. From $145 million, or $2.33 per share, a year ago. The results include a $43 million restructuring expense and are compared to last year, when the company got a benefit from the new federal tax law.
Revenue rose 6.3% to $773 million.
Operating income for AMC’s national networks group was up 0.6% to $177.8 million, despite a 2.2% drop in revenue to $592.7 million. Advertising revenue was up 1.4% to $272 million and distribution revenue decreased 5.1% to $320 million because of a drop in content licensing revenue. Programming expenses were down and included $29 million in programming write offs. A year ago, the company had programming write offs of $38 million.
The company’s International and other segment had an operating loss of $48 million, which was primarily attributable to the acquisitions of RLJ Entertainment and Levity Entertainment. RLJ had a loss of $5 million in the quarter and Levity lost $2 million from its acquisition on April 20, 2018, through the end of the year.
“AMC Networks had a strong fourth quarter and a very successful 2018,” said CEO Josh Sapan. “Our quality content is the key driver behind our expanding distribution across linear and other platforms. In addition, the strength of our balance sheet allows us to continue to pursue smart and strategic investments that are changing our business, including our acquisition last year of RLJ Entertainment.”