AMC Networks Q3 Profit Rises

Third-quarter net revenues increased 3.1 percent to $719 million at AMC Networks, with a 2.3-percent gain in operating income to $168 million.

President and CEO Josh Sapan said: “AMC Networks is well on its way to strategically transforming itself from a ‘cable channels company’ into a premier content company with a suite of focused and targeted video entertainment products that are delivered to viewers on an expanding array of platforms. The underlying strategic priorities fueling our transformation have been and continue to be creating and owning great content and valuable IP, expanding our targeted direct-to-consumer services, maximizing the long-term value of our traditional linear business and diversifying our revenue by developing new avenues of content monetization. Recent successes include our Acorn TV streaming service surpassing one million subscribers, an outsized presence at this year’s Emmy Awards with a number of key wins and a recent agreement with Charter Communications to launch our full suite of focused streaming services—Acorn TV, Shudder, Sundance Now and UMC—and our commercial-free AMC Premiere offering on their Spectrum platform. We are optimizing the value and reach of our content in a variety of ways and executing on a plan that will enable us to thrive in a very dynamic and competitive environment.”

The increase in net revenues reflected a decrease of 0.2 percent within its national networks and an increase of 20.5 percent within international and other.

The operating income increase reflected a decrease of 3 percent at national networks and a decrease of $5 million in operating loss at international and other.

National networks revenues for the third quarter 2019 were essentially flat at $559 million, operating income decreased 3 percent to $182 million, and adjusted operating income decreased 1 percent to $208 million. Q3 revenues reflected a 1.1-percent increase in distribution revenues to $365 million, thanks to an increase in content licensing revenues partially offset by a decrease in subscription revenues. Advertising revenues decreased 2.6 percent to $194 million, primarily related to lower delivery as well as the timing and mix of original programming partially offset by higher pricing.

International and other revenues for Q3 increased 20.5 percent to $183 million, operating loss decreased $5 million to a loss of $12 million, and adjusted operating income increased $6 million to $13 million. Third-quarter revenues primarily reflected $31 million related to the acquisition of RLJ Entertainment (RLJE). The operating loss and adjusted operating income reflected the increase in revenues as well as an increase in operating expenses (primarily attributable to RLJE acquisition).