AMC Networks (AMCX), the network responsible for popular shows like “Breaking Bad” and “Mad Men,” reported a 34% increase in second-quarter profit and better-than-expected sales on Thursday despite a prolonged blackout with Dish that has hurt subscriber growth.
Continue Reading Below
The New York-based television network, which was spun off in June from Cablevision (CVC), reported net income of $41.5 million, or 59 cents a share, compared with a year-earlier $27.2 million, or 39 cents.
Excluding one-time items, AMC earned 57 cents, matching average analyst estimates in a Thomson Reuters poll.
Revenue for the three months ended June 30 grew by 12.2% to $328 million from $292 million, trumping the Street’s view of $324.5 million. The gains were led by 14.4% growth to $305 million at National Networks, which includes AMC, WE tv, IFC and Sundance Channel, that more than offset a $4 million, or 13% decline, in its international business.
“The results were driven by continued advertiser demand and renewals with distributors, most recently AT&T, with whom we reached a new, long-term agreement,” AMC Chief Executive Josh Sapan said in a statement.
AMC blamed a blackout by Dish Network (DISH) in May for several negative financial impacts. Dish stopped carrying the Sundance Channel on May 20 and then terminated carriage of AMC, WE tv and IFC on July 1.
Continue Reading Below
The TV channel operator said the termination by Dish, which has already led to a 13% decline in total subscribers, will have a “material impact” on its revenues, AOCF and operating income in future periods.
“The financial impact on us will depend on several factors, including 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 in a statement.
Dish, the No. 2 U.S. satellite TV provider, told investors after reporting weaker-than-expected second-quarter earnings and profit on Wednesday that people wanting to access AMC shows should turn to Apple’s (AAPL) iTunes or Netflix (NFLX).
Dish CEO said that the cable carrier would lose some subscribers in the third quarter because of the fallout but called the turnover “manageable.”