AMC Networks Sees Revenue Growth in Q1


AMC Networks’ financial results for the first quarter, ended March 31, show a 1.9-percent increase in net revenues to $720 million.

The increase in net revenues reflected 2.8-percent growth at national networks and a decrease of $2 million at international and other. Operating income was $232 million, down 10.5 percent compared to the prior-year period. The dip in operating income reflected a decrease of 6.4 percent at national networks and an increase of $11 million in operating loss at international and other.

Adjusted operating income totaled $270 million, down 5.7 percent. National networks adjusted operating income slipped 4.6 percent and international and other adjusted operating income decreased $4 million versus the prior-year period.

Q1 net income was $136 million compared with $113 million in the first quarter of 2016. This increase was primarily due to the absence of $48 million in charges incurred in first quarter 2016 in connection with the refinancing of debt.

For the national networks—AMC, WE tv, BBC America, IFC and SundanceTV, as well as AMC Studios—revenues for the first quarter increased 2.8 percent to $615 million, operating income decreased 6.4 percent to $250 million, and adjusted operating income decreased 4.6 percent to $268 million. First-quarter growth in revenues was led by a 9.8-percent increase in distribution revenues to $368 million, though advertising revenues were down 6.2 percent to $248 million.

Josh Sapan, AMC Networks’ president and CEO, said: “AMC Networks is off to a solid start in 2017 with revenue growth and significant free cash flow generation in the first quarter that sets the stage for continued progress for the remainder of the year. Buzzworthy, quality original series across our networks, including AMC’s Better Call Saul and The Son, BBC America’s Planet Earth II and Doctor Who, IFC’s Brockmire and WE tv’s Mama June, are attracting passionate fans, critical attention and are breaking through in a crowded environment. Our disciplined approach to investing in high-quality content is building our brands and positioning us well with advertisers and both traditional and new distribution platforms. Looking ahead, we remain focused on costs coupled with smart content investments that will create value for our shareholders over the near and long-term.”