AMC Networks Reports Lower Q4 Earnings

NEW YORK: Fourth-quarter net income at AMC Networks was $14 million, compared to the $90 million reported in the year-ago period, as an impairment charge more than offset increases in revenue and operating income.

Q4 net revenues increased 7.5 percent to $730 million, with 9.2-percent growth at National Networks and a decrease of $1 million at International and Other. Operating income was $104 million, a decrease of 35.3 percent from the prior-year period. The operating income decrease reflected an increase of 9.2 percent at National Networks, more than offset by an increase of $75 million in operating loss at International and Other. Fourth-quarter results include the impact of impairment charges of $68 million related to AMCNI-DMC, the company’s Amsterdam-based media logistics facility.

Josh Sapan, the president and CEO of AMC Networks, said: “2016 was a successful year for our company both financially and operationally, driven by our disciplined and focused strategy of investing in high-quality content and creating brands that have strong, growing, passionate and engaged audiences. The Walking Dead remains the number one show on television by a wide margin and is a powerful example of programming that we own and distribute that commands a loyal audience, attracts advertising revenue, and has significant ancillary revenues that will benefit our business for years to come. With a rapidly expanding studio business, we now have a growing portfolio of shows that we own that provide this kind of opportunity for our business. In addition, we are embracing changing viewing habits by making strategic investments in streaming services that fit well with our programming and the audiences at our network brands. As we look ahead in 2017, we see a number of attractive growth opportunities for our businesses and remain committed to delivering meaningful value to our shareholders.”