AMC Drives Q3 Earnings Growth, Despite Mad Men's Absence


AMC Networks posted higher third-quarter profits, despite missing new episodes of Mad Men, which cut into advertising growth.

Net income rose to $40 million from $25 million a year ago, while revenues rose 4.6% to $284 million.

Revenues rose 4.6% to $284 million.

Adjusted cash flow at AMC's national networks -- AMC, We TV, IFC and Sundance Channel -- climbed 16% to $123.2 million. Revenues rose 3.9% to $258.3 million.

On the company's earnings call with analysts, CEO Josh Sapan said that third-quarter ad revenue was essentially flat because the programmer only aired one original series in the period, as Mad Men was delayed until 2012 by negotiations with series creator Matt Weiner. .

Sapan said that in the fourth quarter, AMC will again air two original series -- zombie series The Walking Dead and new western Hell on Wheels -- "both of which have been extremely strong in the ratings."

In the scatter advertising market, Sapan said "we are selling somewhat closer to air than we did in the same period last. However our pricing is quite strong and in the recently completed upfront we were very successful in both price and volume and will begin those benefits in fourth quarter."

Affiliate revenue rose 6.9%.

In October, AMC Networks announced a distribution agreement with Netflix. He said the deal will start to show up in AMC's revenues in the fourth quarter. 

Read the full story at B&C here.