AMC Networks Earnings Lifted by Fear the Walking Dead, BBC America

NEW YORK: Third-quarter net revenues for AMC Networks increased 21.7 percent to $632 million, with strong ad revenues from its national networks.

The 31.3-percent growth at its national networks (AMC, WE tv, BBC America, IFC and SundanceTV) was partially offset by a decrease of $9 million from its international and other unit, which includes IFC Films. 

Operating income for AMC Networks was $159 million, an increase of 44.5 percent, versus the prior-year period. The operating income increase resulted from 50.2-percent growth at the national networks, partially offset by an increase of $6 million in operating loss at international and other.

Within the national networks segment, Q3 growth in revenues was led by a 52.3-percent increase in advertising revenues to $210 million. The growth in advertising revenues reflected the inclusion of BBC America in the current-year period, as well as growth at AMC, thanks to the timing of the airing of original programming. Distribution revenues increased 20.1 percent to $311 million. The increase in distribution revenues was primarily due to increases in affiliate fees, including the inclusion of BBC America, as well as increases in digital and international licensing revenues.

The decrease in third-quarter revenues within the international and other unit reflected declines at AMC Networks International, primarily related to foreign currency fluctuations, and IFC Films, which faced a tough comparison with the theatrical release of Boyhood in the prior-year period. These declines were partially offset by growth at AMC Networks International on a constant currency basis.

Josh Sapan, the company's president and CEO, said: “AMC Networks had outstanding performance in the quarter, with significant increases in net revenues and operating cash flow driven by the continued popularity of our networks’ original programming, notably BBC America’s Doctor Who and AMC’s newest original series, Fear the Walking Dead, which premiered to record numbers, becoming the biggest series debut in cable television history. We continue to invest in our international business, growing our portfolio of strong local brands and launching the AMC brand into new markets. We are confident our approach to creating great content and building networks with distinct brands that resonate with viewers will continue to drive our performance over the near- and long-term and deliver value for our shareholders.”