First-Quarter Earnings Rise at AMC Networks

NEW YORK: AMC Networks posted a 27.5 percent rise in quarterly revenue, with strong demand for its original programming boosting advertising. 

Q1 revenue totaled $669 million, led by 25.4 percent growth at its national networks and 38.9 percent growth within international and other. Operating income was $231 million, an increase of 56.3 percent. This was the result of 42.5 percent growth at its national networks and a decrease of $11 million in operating loss within international and other. First-quarter net income from continuing operations was $121 million, driven by the growth in operating income.

The national networks segment—AMC, WE tv, BBC America, IFC and SundanceTV—saw revenue increase 25.4 percent to $563 million. Operating income rose 42.5 percent to $240 million. This growth was led primarily by a 25.3 percent increase in advertising revenues to $260 million. Original programming boosted this increase in ad revenues, largely the AMC originals. The segment also benefited from the inclusion of BBC America in the current year period. Distribution revenues increased 25.6 percent to $302 million, thanks to an increase in affiliate fees, including the addition of BBC America, as well as increases in licensing revenues.

The international and other segment—which consists of AMC International, IFC Films and various online content distribution initiatives—saw its revenue increase to $106 million and its operating loss decrease to $10 million. First-quarter revenues increased primarily as a result of the Company’s acquisition of Chellomedia.

“AMC Networks is off to a strong start in 2015, with returns on our content investments generating significant growth in our revenues, AOCF and operating income,” said Josh Sapan, the president and CEO of AMC Networks. ”Viewers continue to embrace our original programming, including AMC’s The Walking Dead and our new original series Better Call Saul, which was the most-watched new series on cable in key advertiser demos this broadcast season. Our international business is developing well, with our portfolio of global channels and strong local brands benefiting from growing demand from distributors. AMC Networks continues to operate from a position of strength, with high-quality programming, clearly defined brands and strong audience support that drives financial performance and our ability to create value for shareholders.”