Shares of AMC Networks Inc. fell as much as 4.5 percent on Thursday after the entertainment company reported earnings for the second quarter that came in below Wall Street expectations.
AMC Networks reported adjusted earnings of $1.93 per share, which was an improvement from the $1.88 per share earnings the company reported during the same quarter a year ago. But that fell short of the $1.98 earnings per share analysts were hoping to see, according to estimates per Yahoo Finance.
The company saw revenue jump to $761.4 million from the $710.5 million the network reported last year. Revenue for the quarter exceeded analysts’ expectations for $730.8 million.
Revenue from AMC Networks’ national cable stations — including IFC, BBC America and WE tv — saw a 3.7 percent increase, accounting for $627.3 million of the net total, while international and other revenue ballooned 32.4 percent to $146.7 million.
“We continued to deliver solid financial and operating results in the second quarter, growing revenue and adjusted operating income; generating strong free cash flow; and using our capital to position the business for the long-term,” AMC Networks CEO Josh Sapan said in a statement. “Our recent transactions related to RLJ Entertainment and Levity are strategically consistent with several of our larger goals, including furthering our interests in ad-free direct-to-consumer businesses that we own and control, through RLJ Entertainment’s growing Acorn TV and UMC SVOD services, and content ownership.”
Sapan went on to tout the network’s success with BBC America’s “Killing Eve,” which garnered two Emmy nominations: Best Actress in a Drama Series for Sandra Oh and outstanding writing for the show’s creator, Phoebe Waller-Bridge.
AMC, along with operating BBC America, has a 49.9 percent equity stake in the network.
“Our financial performance reflects our continued ability to create high-quality content that stands out, including the widely-acclaimed and Emmy-nominated BBC America original series ‘Killing Eve,’ which debuted in the quarter and became the only scripted series in more than a decade on linear television to grow its ratings every week over its first season,” Sapan said in his statement. “We continue to ensure that our content and brands are widely distributed and we have the distinction of being the most widely available independent programmer to be carried by virtual MVPDs, which includes our most recent launch on AT&T’s new Watch service.”
“In an environment that is rapidly changing, our strong track record, along with our size and our attractive price to distributors, will enable us to continue operating from a strong competitive position, take advantage of growth opportunities, and create value for shareholders,” Sapan continued.