AMC Networks Posts Q2 Profit

Second-quarter net income at AMC Networks totaled $129 million, compared with $106 million in the prior-year period, despite an 11-percent decline in U.S. ad sales.

Revenues increased by 1.4 percent to $772 million, driven by gains in international operations.

National networks saw revenues slip 3.6 percent in Q2 to $605 million while operating income increased 2 percent to $214 million. There was a 1.3-percent gain in distribution revenues, though advertising took a hit, down 11.1 percent to $219 million.

International and other revenues were up 22.4 percent to $180 million, and operating loss increased $16 million to a loss of $27 million. The quarter included $26 million related to the acquisition of RLJ Entertainment.

President and CEO Josh Sapan said: “We delivered solid results in the second quarter and remain on track to deliver on our financial targets for the full year. We continue to make significant progress on our strategic goals, which include creating great content and diversifying our revenue. Our recently announced landmark partnership with Universal Studios for the first-ever theatrical movie set in The Walking Dead Universe underscores the high level of interest that the Universe commands and the undeniable strength and vitality of this growing franchise. The recent Emmy nominations brought AMC Networks wide recognition, with nominations for four of our five networks as well as our streaming service Acorn TV, affirming AMC Networks as a company whose shows ignite audiences, critics and Emmy voters at a time that is more crowded and competitive than ever.”

He added: “In addition, we are seeing very healthy rates of growth across our four targeted SVOD services—Acorn TV, Shudder, Sundance Now and UMC. As these services gain sufficient scale, we have been increasingly populating them with original content, which has been resonating with subscribers and is driving our momentum. As we continue to remain focused on creating sought-after premium content—which propels our entire enterprise—we believe direct-to-consumer, along with owning more of our intellectual property and expanding our studio, represent significant growth areas for us.”