AMC Networks posted substantial third quarter gains in revenue, but fell substantially in operating profits. The company did surpass the expected 85 cents adjusted earnings per share, hitting 90 cents.
The company — which operates AMC, We TV, Sundance Channel and IFC — saw net revenues rise to $522 million, a 143 million — or 37.6 percent jump — from 2013’s second quarter revenue. At the same time, income fell from $247.3 million to $129 million, largely due to the $133 million litigation victory that boosted 2013’s second quarter.
When the litigation is removed from the equation, the company posted a $15 million jump in operating income.
“AMC Networks once again generated double digit increases in revenue and AOCF in the second quarter as we continued to create value for our shareholders by investing in high-quality original programming that builds our brands, strengthens our relationships with distributors and advertisers and creates highly passionate and dedicated viewers,” CEO Josh Sapan said. “We are proud of our thirty-five prime-time Emmy nominations, including twenty six at AMC, eight at IFC and one at SundanceTV.”
The company’s flagship network, AMC, has one half-season left of drama “Mad Men,” while “The Walking Dead” kicks off again this fall. It can boast returns on its small, long-term investment on the IFC-funded film “Boyhood,” from director Richard Linklater, as well as new AMC dramas such as “Halt and Catch Fire” and “Turn.”
The networks saw 11.3 percent increase in advertising revenues, bringing it to $164 million. Distribution revenues climbed 7.0 percent to $234 million.