AMC Networks Sees Lift in Q3 Profits

Net income rose 33 percent to $87 million at AMC Networks in the third quarter.

Q3 net revenues increased 2.1 percent to $648 million from the year-ago period. Operating income was $153 million, up 30.9 percent, and on an adjusted basis gained 19.2 percent to $200 million.

The national networks segment—AMC, WE tv, BBC America, IFC and SundanceTV, as well as AMC Studios—saw revenues rise by 3 percent to $541 million, while operating income increased 29.1 percent to $180 million and adjusted operating income increased 22.9 percent to $200 million. The lift in revenues was led by a 4.5-percent increase in advertising revenues to $198 million, and there was a 2.1-percent gain in distribution revenues to $344 million. The increase in Q3 operating income and adjusted operating income reflected the increase in revenues as well as a decrease in operating expenses.

In the international and other segment—AMC Networks International, IFC Films and developing digital content distribution initiatives—revenues for Q3 2017 decreased $1 million to $113 million, operating loss increased $2 million to a loss of $19 million, and adjusted operating income decreased $3 million to $8 million. Revenues primarily reflect the absence of AMCNI-DMC, the company’s Amsterdam-based media logistics facility, partially offset by an increase in revenues at the company’s international programming networks. Q3 operating loss and adjusted operating income reflect the decrease in revenue as well as an increase in operating expenses.

AMC Networks’ president and CEO, Josh Sapan, said: “We delivered strong financial performance in the third quarter, and we are on track to meet our 2017 full-year financial targets of total company revenue and adjusted operating income growth. Our results reflect the consistent execution of our long-term strategy of investing in high-quality, immersive content that is resulting in growing demand among traditional distributors, virtual MVPDs, advertisers and consumers; and, importantly, is giving us the ability to monetize the demand for our content through new revenue streams. In an evolving media and entertainment marketplace, AMC Networks is well positioned based on our size, our pricing and our content, which includes four of the highest-rated dramas on all of basic cable, giving us the ability to continue to further invest in our content, our brands and new businesses.”