Company says Dish cutting networks will have a "material effect" on future earnings
AMC Networks posted a higher second quarter profit on increased advertising revenue, the company announced Thursday.
The owner of AMC, WE tv, IFC and Sundance Channel said net income from continuing operations rose to $41.4 million, or 57 cents per share, up from $27.1 million, or 39 cents per share, during the three-month period a year earlier. Revenue rose 12 percent to $328 million.
It said the results were driven by consumer demand and renewal deals with distributors, including AT&T, which which it recently reached a new, long-term agreement.
But the company said Dish Networks' decision to cut its neworks will have a "material effect" on its revenues, adjusted operating cash flow, and operating income. The amount AMC loses will depend on "the length of time our networks are not carried on Dish Network’s platform and if, when and on what terms DISH Network and the Company enter into new carriage agreements," AMC said.
AMC contends Dish dropped its network in retaliation for a legal setback in a lawsuit between Dish and AMC's Voom HD. The case goes to trial Sept. 18 in New York State Supreme Court.
Dish denies dropping AMC Networks in retaliation. It says it dropped AMC because its ratings were too low, which AMC contests. AMC Networks also points to the critical and awards show success of its shows, including "Mad Men" and "Breaking Bad."
"Last month, the Company received 36 Emmy Award nominations, more than any other basic cable television group," said AMC president and CEO Josh Sapan. "This critical reception helps drive the growth of our business and our financial performance."
As of 10 a.m. ET Thursday, AMC Networks shares were each up .51 percent to $43.56.
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