BBC America spurs AMC to beat the Street in Q2
| 07 August 2015
AMC Networks posted double-digit gains in revenue and profit for the second quarter thanks to the addition of BBC America to its portfolio of domestic cable networks.
Total revenue for the company climbed 15.1% to $601 million, powered by nearly 23% gain for its national networks. Net income rose to $83 million, or $1.14 per share, from $58.6 million in the year-ago quarter. The figures well surpassed analyst estimates.
Currency headwinds, however, sent AMC's growing international portfolio and IFC Films to a $9 million loss, compared with a $3.7 million in operating income in the year-ago quarter.
The domestic success was largely fuelled by the fact that the pay-TV company closed a $200 million deal with the BBC last October to take control of BBC America, which helped AMC's cable nets division grow advertising 13.4% to $186 million, despite declining ratings for the AMC flagship network.
"We're facing a changing advertising market but we think we're positioned quite well," AMC Networks president and CEO Josh Sapan said. "We've seen healthy price increases for our originals in the upfront and a pickup in the scatter market."