AMC Networks said profit in the third quarter fell after revenue at the company’s U.S. cable networks fell amid the effects of the coronavirus pandemic
The New York-based company said it had net income of $1.17 per share, or $61.6 million, compared with $2.07 per share, or $116.9 million in the year-earlier period.
The owner of the AMC, WE, IFC and Sundance cable networks said revenue tumbled 9%, to $654 million from $718.6 million, largely due to its U.S. cable outlets, which saw distribution revenue tumble by 18.3% and advertising fall by 15.5% AMC cited the ad shortfall to a delay in the airing of original programming. The company also noted it took a $20 million charge related to the write-off of programming assets, though it did not disclose the specific content in question.
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Like other media companies, AMC Networks highlighted consumer interest in its streaming assets. The company said it expects between 5 million and 5.5 million paid subscribers by the end of the year for its streaming-video services, which include AMC+, Shudder and Sundance, with Shudder, a service that specializes in horror content, already winning 1 million subscribers.
AMC Networks said revenue at its international and other operations rose 9% as more subscribed to its streaming-video services.
In a statement, AMC Networks CEO Josh Sapan said the company continues “to maintain a strong financial profile, with a solid balance sheet, very good liquidity and healthy levels of free cash flow.”