The company’s operating income fell 47.6% to $118 million, which AMC said was due to the impact of the 2012 Voom HD legal settlement gain in the second quarter last year. Without it, operating income increased 13.2%, or $15 million.
“AMC Networks once again generated double digit increases in revenue and [adjusted operating cash flow] in the second quarter as we continued to create value for our shareholders by investing in high quality original programming that builds our brands, strengthens our relationships with distributors and advertisers and creates highly passionate and dedicated viewers,” said AMC Networks CEO Josh Sapan.
The figures are for the three months ended June 30.
Revenue increased to $522.1 million, from $379.3 million in the same period a year earlier. The company attributed gains to the growth in advertising revenues at its major networks, which include AMC, WE tv, IFC and Sundance TV, as well as gains from its acquisition of Chellomedia from Liberty Global.
Revenue for AMC’s national networks increased 8.7% to $398 million. But operating cash flow among the networks fell 9.4% to $137 million, and operating income fell 4.4% to $125 million. AMC cited higher programming and marketing expenses.
AMC Networks said that ad growth among the networks rose 11.3% to $164 million.
In its international division and its IFC Films unit, AMC said that revenue increased $111 million to $125 million, with operating cash flow improving $34 million to $20 million, and operating income falling $111 million to $4 million compared to a year ago.
In a conference call with analysts, Sapan declined to comment on recent reports that the company was looking to buy a minority stake in BBC America. But he said that their acquisition philosophy was for properties that “fit into the highest priorities of the company.”
He also said that the company will continue to pursue its strategy of owning, rather than licensing, its scripted original series, with the spring debuts of “Turn” and “Halt and Catch Fire” the most recent examples.
Sapan also noted the recent box office performance of “Boyhood,” released by its IFC Films unit. Although the Richard Linklater movie has had a few good weeks at the box office, Sapan said that it will not have a substantial effects on the overall performance of AMC Networks. Rather, he said, the independent film world has a “nexus” with its pursuit of TV dramas by developing relationships with filmmakers who may be looking to also produce for the small screen.