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AMC Reports Higher Second Quarter Revenues - Broadcasting & Cable

AMC Reports Higher Second Quarter Revenues

Higher expenses cut U.S. network profits
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Because of a big gain from the Dish Network litigation a year ago, AMC Networks reported lower profits in the second quarter.

The company’s international operations reported a profit after a loss a year ago, but higher expenses cut into cash flow at AMC’s national networks.

Net income was $58.7 million, or 81 cents a share, compared to $135.7 million, or $1.90 a year ago. Excluding a $133 million gain from the Dish Network litigation over the Voom high definintion programming service a year ago, earnings were up 12.5%.

Revenues rose 38% to $522 million.

“AMC Networks once again generated double digit increases in revenue and AOCF in the second quarter as we continued to create value for our shareholders by investing in high-quality original programming that builds our brands, strengthens our relationships with distributors and advertisers and creates highly passionate and dedicated viewers,” CEO Josh Sapan said in a statement.

At AMC’s national networks, AMC, WE TV, IFC and Sundance TV, cash flow fell 9.4% to $136.9 million because of an increase in programming and marketing expenses. 

Revenues were up 8.7% to $398 million, with ad revenues up 11.3% to $164 million. The company says ad sales rose because of strong demand for original programming on its networks.

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