AMC Q2 Earnings Ascend on Revenue GainsBut Dish Dispute Could Cloud Fiscal Future 8/09/2012 5:00 AM Eastern
AMC Networks reported higher earnings in the second quarter, but warned its dispute with Dish Network could hurt profits in the future.
Net income rose 53% to $41.5 million, or 58 cents a share, from $27.1 million, or 39 cents a share a year ago. Revenues rose 12% to $328 million
"In the second quarter, AMC Networks delivered solid financial results with double-digit percentage increases in net revenues, AOCF and operating income. The results were driven by continued advertiser demand and renewals with distributors, most recently AT&T, with whom we reached a new, long-term agreement," CEO Josh Sapan said in a statement.
Sapan also mentioned a dispute with another key affiliate."Dish Network dropped our networks to gain leverage in an unrelated lawsuit. The trial is scheduled to begin September 18 in New York State Supreme Court," he said.
The No. 2 DBS provider stopped carrying Sundance Channel on May 20, and dropped AMC, IFC and WeTV on July 1. "The termination of Dish Network's carriage will have a material impact on our revenues, AOCF and operating income in future periods," the company said. "Although Dish Network's termination has reduced the company's total subscribers by approximately 13%, the impact on our AOCF and operating income, if it continues, will be material higher.
At the company's national networks group, which includes AMC Network, We TV, IFC, and Sundance Channel, adjusted operating cash flow rose 16% to $135.6 million in the quarter as revenues rose 14.4%.
Advertising revenues rose 13.4% to $130 million led by AMC Network. Affiliate and other revenues rose 15.2% to $176 million, reflecting higher sub fees and increased digital distribution.