AMC Networks Sees Higher Q2 Profit

AMC Networks reported second-quarter net income of $102.6 million, up 34 percent on the year-ago period, with a strong performance from its U.S. cable networks.

Q2 net revenues increased 3.8 percent to $711 million, with 5.6 percent growth at national networks and a decrease of $7 million at international and other. Operating income was $176 million, a decrease of 1.3 percent.

The national networks—AMC, WE tv, BBC America, IFC and SundanceTV, as well as AMC Studios—delivered revenues of $605 million, while operating income increased 11.9 percent to $212 million and adjusted operating income increased 12.5 percent to $232 million. Second-quarter growth in revenues was led by a 7.8 percent increase in distribution revenues to $359 million, primarily attributable to an increase in licensing revenues as well as an increase in affiliate fees. Ad revenues increased 2.6 percent to $245 million, with higher pricing partially offset by lower delivery.

The international and other segment—which principally consists of AMC Networks International, IFC Films, and various developing digital content distribution initiatives—saw revenues for the second quarter of 2017 decrease by $7 million to $111 million, while operating loss increased $23 million to a loss of $31 million, and adjusted operating income decreased $7 million to $1 million.

“Our financial and operating performance in the second quarter and for the year, thus far, has been strong and we remain on track to deliver on our full-year total company outlook,” said AMC Networks President and CEO Josh Sapan. “The success of our long-term focus on investing in marquee content and in distinctive, vibrant brands that attract passionate and engaged fans is reinforced by our wide distribution on new virtual MVPDs, including most recently YouTube TV; being home to four of the top five dramas on basic cable; and with Emmy nominations that span our networks and genres, including nominations for AMC’s Better Call Saul, IFC’s Documentary Now! and BBC America’s Planet Earth II. In addition, we continue to partner with our traditional distributors on innovative initiatives that support the cable ecosystem, including our new AMC Premiere offering to Comcast Xfinity TV customers, and our AMC Studios co-production partnership with Charter.”