Company blames interest related to Cablevision spinoff
AMC Networks shares fell more than 5 percent Thursday morning on news that the company had missed profit forecasts for the fourth quarter of 2011.
The owner of AMC, IFC, Sundance Channel, WE tv and IFC Films reported profits of $29 million, or $0.40 per diluted share, compared with $30 million, or $0.43 per diluted share, in the fourth quarter of 2010. The decrease resulted partly from an increase in interest expense related to its spinoff from Cablevision Systems last June.
Analysts had forecast fourth-quarter earnings of 59 cents per share on revenue of $327.9 million, according to Thomson Reuters.
Shares of the company's stock were down 5.1 percent to $43.70 as of 10:36 ET.
Fourth quarter net revenues increased $40 million, or 13.6 percent, to $339 million over the fourth quarter of 2010, led by 12 percent growth at National Networks and a 14.5 percent increase in International and Other. The segment includes AMC/Sundance Channel Global, international programming; IFC Films, the company's independent film distribution business; AMC Networks Broadcasting and technology, the Company's network technical services business; and VOOM HD.
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