AMC Networks reported higher profit in the second quarter as lower losses in its international operation offset declines at its U.S. networks.
Net income rose 3% to $106 million, or $1.82 a share, from $103 million, or $1.54, a year ago.
Revenue rose 7.2% to $761 million.
At the company’s national networks in the U.S., including AMC, We TV, Sundance TV, IFC and BBC America, operating income was down 0.8% to $210 million. Programming expenses rose including a $4 million write-off of programming assets.
Related: AMC Networks Sets Senior Programming Leadership Team
Revenue rose 3.7% to $627 million. Distribution revenue increased 5.8% to $380 million. Advertising revenue edged up 0.6% to $247 million despite lower ratings.
The company cut the operating losses at its international and other segment by 673.7% to $11.3 million. International revenue rose 32.4% to $146.7 million.
Other revenue was up by $30 million because of the acquisition of Levity Entertainment Group.
“We continued to deliver solid financial and operating results in the second quarter, growing revenue and adjusted operating income; generating strong free cash flow; and using our capital to position the business for the long-term,” said CEO Josh Sapan.
“Our recent transactions related to RLJ Entertainment and Levity are strategically consistent with several of our larger goals, including furthering our interests in ad-free direct-to-consumer businesses that we own and control, through RLJ Entertainment’s growing Acorn TV and UMC SVOD services, and content ownership," he added.
Sapan noted that as an independent programmer, the company’s content and networks were carried by the most virtual MVPDs, including AT&T’s Watch. AMC Networks's total number of subscribers is up 2% from a year ago at a time when cord-cutting is reducing pay-TV customers.
“In an environment that is rapidly changing, our strong track record, along with our size and our attractive price to distributors, will enable us to continue operating from a strong competitive position, take advantage of growth opportunities, and create value for shareholders," Sapan said.
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