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AMC Reports Lower Profits in Third Quarter

AMC Networks reported lower third-quarter earnings as ad revenues dropped and the company wrote off some programming assets.

Net income fell to $65 million, or 91 cents per share, from $73 million, or 99 cents a share, a year ago.

Revenues were flat at $635 million.

“We continued to execute on our long-term strategic goals during the third quarter. Building on its reputation as a world-class brand with premium content, AMC has five of the top 10 shows on basic cable in key demos for the most recent broadcast season. This success is driving AMC Networks’ financial performance and is placing us on track to deliver solid results for full year 2016,” said CEO Josh Sapan.

“Recently, AMC debuted the seventh season of The Walking Dead with a powerful episode that was watched by more than 20 million viewers, making it the most watched program on television for the fifth consecutive season, among key demos,” he added. “Across the company, our programming continues to resonate broadly and is desirable in both linear and non-linear environments.”

At AMC’s national network, operating income dropped 19.6% to $139 million because of higher programming expenses, which included a $19 million charge for writing off certain shows. A year ago, AMC wrote off $12 million worth of programming.

Revenues were up 0.8% to $526 million. Distribution revenues were up 8% to $336 million.

Advertising revenues were down 10% to $189 million, reflecting lower ratings at the AMC network.