Company warns that Dish loss will cost
AMC Networks earnings jumped 52% last quarter even as the company warned that losing Dish at the end of June would cost it dearly going forward.
“Although Dish Network’s termination has reduced the company’s total subscribers by approximately 13%, the impact on our (cash flow) and operating income, if it continues, will be materially higher,” the company said. It believes the dispute is directly related to ongoing litigation between the two companies, which are headed to New York State Supreme Court next month. Dish chairman Charlie Ergen has vehemently denied that, insisting fees were the only issue.
Net income surged to $41.5 million from $27.2 million. Revenue rose 12%, to $328 million, led by 14.4% growth at national networks.
Advertising grew 13.4% to $130 million led by AMC. Affiliate and other revenues increased 15.2% to $176 million on higher fees and digital distribution, home video and international revenues from licensing programming.
CEO Josh Sapan said the strong numbers were driven by advertiser demand and renewals with distributors, most recently AT&T. AMC is home to “Mad Men,” “The Walking Dead” and “Breaking Bad.” AMC just received a total of 34 Emmy nominations, while IFC had two noms.
AMC had 97 million, subscribers at the end of the quarter. WEtv had 78.5 million, IFC 70 million and Sundance Channel an estimated 40 million.