Lower Earnings for AMC Networks in Q3

NEW YORK: AMC Networks saw a solid revenue hike in the third quarter compared to the same period a year ago but a drop in earnings.

Net income dipped to $54 million, from the $58 million in Q3 2013. Revenue was up 31.4 percent to $520 million, with the acquisition of Chellomedia (which is now called AMC Networks International).

The company faced a tough year-on-year comparison, because last year's Q3 included the advertising from the final season of Breaking Bad. AMC's national networks division—with AMC, SundanceTV, IFC and WE tv—saw operating income down 17.3 percent to $115 million. Ad revenue at the national networks dipped 5.8 percent to $138 million. Declines at AMC offset the increases at Sundance, WE tv and IFC. The company also took a $9 million write-down on its decision to abandon a number of unscripted series.

The International and Other unit, home to IFC Films, was a bright spot. Revenue was up by $109 million from the year-ago period, coming in at $123 million, due to the Chellomedia acquisition. The international growth helped the unit narrow its operating loss to $5 million, which marks a $13 million improvement on the prior year's Q3.

Josh Sapan, AMC Networks' president and CEO, said: “AMC Networks continued its strong financial and operating performance in the third quarter with a double digit increase in revenue and growth in AOCF. We are particularly pleased that for the broadcast season, which ended in the third quarter, AMC Networks in aggregate was the only cable media group to have experienced double-digit growth in viewership among key demos adults 18-49 and adults 25-54. Our year over year growth is significant and speaks to the success of our core content investment strategy. The recently announced partnership with BBC Worldwide, which includes our taking a 49.9 percent stake in BBC America through a long-term joint venture, meets many of our core strategic objectives for our business and provides a platform for long-term growth and success."