AMC achieves double-digit Q3 growth
| 09 November 2014
AMC Networks continued its strong financial and operating performance in the third quarter with a double-digit increase in revenue and growth.
Third quarter net revenues increased $124 million, or 31.4%, to $520 million over the third quarter of 2013, led by 4.3% growth at national networks and an increase of $109 million in the international and other divisions.
“We are particularly pleased that for the broadcast season, which ended in the third quarter, AMC Networks in aggregate was the only cable media group to have experienced double-digit growth in viewership among key demos adults 18-49 and adults 25-54,” said president and CEO Josh Sapan. “Our year over year growth is significant and speaks to the success of our core content investment strategy.”
To that end, AMC recently announced a partnership with BBC Worldwide, which includes it taking a 49.9% stake in BBC America through a long-term joint-venture.
For now, the company’s flagship properties, AMC, WE tv, IFC and SundanceTV, saw revenues for the third quarter increase 4.3% to $397 million. That was led by a 10.5% increase in distribution revenues to $259 million, attributable to increases in affiliate fees as well as digital and international licensing revenues.
Advertising revenues decreased 5.8% to $138 million however, thanks to declines at AMC. That was principally related to the timing of the airing of original programming (the Walking Dead is for instance airing Sunday nights opposite Sunday Night Football), which offset increases at WE tv, IFC and SundanceTV.
Third quarter net income from continuing operations saw a decline however: it was $54 million, compared with $58 million in the third quarter of 2013. The decrease resulted from the decline in operating income and an increase in miscellaneous expense partially offset by lower income tax expense.
Operating income was $110 million, a decrease of 9.9%, or $12 million, versus the prior year period. The operating income decrease resulted from a decline of 17.3% at national networks was partially offset by an improvement of $13 million in international, including the impact of the Chellomedia acquisition.