AMC Networks Sees Lift in Quarterly Earnings

November 1, 2018 Kristin Brzoznowski
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AMC Networks posted better-than-expected Q3 earnings, reporting a 28-percent rise in net income to $111 million.

Third-quarter net revenues increased 7.5 percent to $697 million. This included the impact of $39 million of net revenues related to the acquisition of Levity Entertainment Group.

National Networks—AMC, WE tv, BBC Amerca, IFC and SundanceTV, as well as AMC Studios—saw revenues of $560 million, up 3.5 percent. Operating income was up 4.7 percent to $188 million and adjusted operating income was up 5.4 percent to $210 million.

For the International and Other segment—AMC Networks International, IFC Films, Levity, Sundance Now and Shudder—revenues for Q3 were up 34.6 percent to $152 million. Operating loss decreased 10.8 percent to a loss of $17 million. Adjusted operating income decreased $1 million to $8 million.

AMC Networks also said it has officially closed the acquisition of RLJ Entertainment.

President and Chief Executive Officer Josh Sapan said: “Today we announced our acquisition of RLJ Entertainment, the company behind the growing streaming services Acorn TV and UMC, which now reach nearly one million subscribers. This acquisition represents a major step forward for AMC Networks as we further diversify our business through direct-to-consumer offerings that we own and control, and through our AMC Studios operation and our international channels business.”

He added: “In an evolving media and entertainment marketplace, AMC Networks continues to be very well positioned based on our size, our pricing and our strong content, which includes three of the top five dramas on ad-supported cable, and we remain the most widely available independent programmer among virtual MVPDs. In the third quarter, we delivered solid financial performance and we are on track to meet our 2018 full-year financial targets of total company revenue and adjusted operating income growth.”