AMC Networks reported lower fourth-quarter earnings as an impairment charge more than offset increases in revenue and operating income.
Net income fell to $14 million, or 20 cents a share, from $90 million, or $1.23 a share a year ago.
The company said the fourth-quarter results include the impact of impairment charges of $68 million related to AMCNI-DMC, the company’s Amsterdam-based media logistics facility. Adjusted earnings were $92 million, or $1.30 a share, down from $102 million, or $1.39 a share, a year ago. Adjusted operating income was up 7.9% to $212.7 million.
Revenues rose 7.5% to $730 million in the quarter.
The adjusted earnings and revenues exceeded Wall Street forecasts. AMC Networks stock jumped more than 7% in morning trading after the financial results were released.
At AMC’s national networks group, operating income was up 9.2% to $189 million. Programming expenses were up, including a $5 million charge to write off some programming assets. The write-off was smaller than the $16 million write off reported a year ago.
Revenues also rose 9.2% to $614 million. Distribution revenue rose 15.6% to $316 million. Advertising revenues rose 3.1% to $298 million.
"2016 was a successful year for our company both financially and operationally, driven by our disciplined and focused strategy of investing in high-quality content and creating brands that have strong, growing, passionate and engaged audiences,” said CEO Josh Sapan.
"With a rapidly expanding studio business, we now have a growing portfolio of shows that we own that provide this kind of opportunity for our business. In addition, we are embracing changing viewing habits by making strategic investments in streaming services that fit well with our programming and the audiences at our network brands,” Sapan said. “As we look ahead in 2017, we see a number of attractive growth opportunities for our businesses and remain committed to delivering meaningful value to our shareholders."
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