AMC Networks reported lower third-quarter earnings as revenue and income at its U.S. networks dropped.
Net income fell 47% to $62 million, or $1.17 a share, from $117 million, or $2.07 a share, a year ago.
Revenue fell 9% to $654 million.
At AMC’s national networks, operating income fell 28.8% to $129.8 million as revenue dropped 17.3% to $462.1 million. Distribution revenue were down 18.3% to $298 million. Advertising revenue slid 15.5% to $164 million. The company said the advertising revenue drop reflected the timing of original programming and lower demand from advertisers because of the COVID-19 pandemic.
Operating income was $11.2 million for the company’s international and other segment, reversing an $11.5 million loss a year ago. The segment includes the company’s SVOD business. Revenue was up 9% to $199.3 million.
“The company delivered solid results in the 3rd quarter and we continue to maintain a strong financial profile, with a solid balance sheet, very good liquidity and healthy levels of free cash flow,” said CEO Josh Sapan.
Sapan said AMC’s targeted SVOD services--Acorn TV, Shudder, Sundance Now and UMC services--are expected to 4 million subscribers by year-end, outperforming expectations. With the addition of the AMC+ premium SVOD offering, the company expects to have 5 million to 5.5 million total SVOD subscribers, in aggregate, by the end of the year.
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