AMC Networks Reports Higher Profit in First Quarterly Results as Separate Company
NEW YORK - AMC Networks reported a higher second-quarter operating profit and improved net profit in its first quarterly financials as a standalone company, but profit from continuing operations declined slightly.
AMC Networks shares rose 13.3 percent in Thursday trading amid a broader market rebound following the better-than-expected results. The stock finisged at $34.31.
The cable networks operator, which was spun off from cable operator Cablevision Systems mid-year, posted an operating profit of $82 million, up 14.8 percent from the year-ago period.
The company's $27.2 million in quarterly net income compared with $22.1 million in the year-ago period. Focusing on continuing operations, which excludes the News 12 and Rainbow Advertising Sales businesses that remained with Cablevision after the spin-off and that showed improved results in the latest quarter, profit declined from $31 million to $27 million though. "The decrease resulted from $20 million of costs related to the redemption of debt in connection with the spin-off from Cablevision partially offset by reductions in interest expense and income tax expense," the company explained.
Second-quarter revenue rose 12.3 percent to $292 million driven by a 21.2 percent advertising revenue improvement.
The owner of the AMC, IFC, Sundance Channel and WE tv channels, is led by president and CEO Josh Sapan. The Dolan family, which controls Cablevision, also controls AMC Networks.
"With a record 31 Primetime Emmy nominations this year, we continue to focus on investing in quality original programming to drive ratings, differentiate our brands and provide value to our distributors and advertisers," Sapan said in the company's earnings report.
The AMC network has had success with such hit shows as Mad Men, Breaking Bad and The Walking Dead. It recently fired Frank Darabont as showrunner of Walking Dead though.