AMC Networks said its second quarter net income rose 21% despite an 11% decline in U.S. ad sales, putting a spotlight on some of the company’s international operatoins, which showed more business growth during the period.
The New York-based owner of the AMC, IFC and SundanceTV cable networks said net income came to about $128.7 million, or $2.25 a share, in the second quarter, compared with approximately $106.2 million, or $1.82 a share, in the year-earlier period.
Revenue rose 1.4%, or $11 million, to $772 million, largely due to a surge in revenue at the company’s overseas operations.
In a statement, AMC Networks CEO Josh Sapan suggested the company was working to diversify its revenue sources through new ventures, including making new content for subscription-based streaming services and a new alliance with Universal Pictures for a series of films centered around Rick Grimes, the former protagonist for its “Walking Dead” series, who is played by actor Andrew Lincoln. “As we continue to remain focused on creating sought-after premium content – which propels our entire enterprise – we believe direct-to-consumer, along with owning more of our intellectual property and expanding our studio, represent significant growth areas for us,” Sapan said.
AMC Networks said revenue at its U.S. networks fell 3.6%, citing a slump in advertising due to lower linear TV ratings.
More to come…