Higher affiliate fees offset flat advertising revenue due to lack of ‘Mad Men’
Despite the absence of mainstay “Mad Men,” AMC reported increases in both its revenues and earnings for the third quarter as compared to last year.
AMC, which in addition to its eponymous channel runs cable networks like IFC and the Sundance Channel, posted net earnings of $40 million, up from $34 million last year. Earnings per share of $0.55 bested Wall Street’s estimate of $0.44.
Its revenues of $284 million failed to meet analyst predictions, but still marked a 4.6 percent improvement over the same frame from fiscal 2010.
Josh Sapan, president and CEO of AMC, credited the network’s critical and commercial hits like "Breaking Bad," “Mad Men” and “The Walking Dead.”
"The core of our growth strategy continues to be our investment in original programming,” Sapan said. “The Walking Dead season two premiere, which was the highest rated dramatic show ever in basic cable history against key adult demos, and our performance in the 2011-2012 upfront, underscores the strength of this strategy. […] Our programming successes are reflected in solid financial results as we continued to increase net revenues, AOCF and operating income in the third quarter."
Higher affiliate fees were needed to spur the domestic revenue growth since without “Mad Men,” which usually premieres in the summer but was delayed until March of 2012, advertising revenues remained flat.