Debt Reduction Lowers AMC's Q4 EarningsProgrammer's Revenues Up 8% 2/26/2013 5:27 AM Eastern
AMC reported lower earnings in the fourth quarter and disclosed some details of the settlement of its Voom Network litigation with Dish Network.
Net income from continuing operations was $15 million, or 21 cents per share, down from $29 million, or 40 cents, a share. The company said the decrease was caused by costs incurred when repaying a loan facility.
Revenues rose 8% to $367 million. Advertising revenues at AMC's national networks -- AMC, WE tv, IFC and Sundance Channel -- were up 16% to $157 million. Distribution revenues rose 6.8% with growth in affiliate fees offset by lower digital revenues.
"2012 was a successful year for AMC Networks. Our continued strategy of investing in original programming while developing strong brands with consumers resulted in record ratings, most notably for AMC's ratings juggernaut The Walking Dead," CEO Josh Sapan said in a statement. "We resolved our legal dispute with Dish Network, completed new carriage agreements with a number of leading distributors, and expanded our relationships with key advertisers. All of which, contributed to strong financial results for the full year and gives us confidence that we are well-positioned for continued success in the year ahead."
AMC said that the $700 million settlement with Dish Network was split evenly between it and Cablevision Systems. (AMC was spun off from Cablevision, and the Dolan family that controls Cablevision also owns a controlling stake in AMC.) But it said the final amount to be allocated to the company was yet to be determined and "may be significantly less than $350 million."
AMC also said that as a result of the settlement it signed a new long-term affiliation agreement with Dish.