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.
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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.
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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.
