×
You will be redirected back to your article in seconds

AMC Networks’ Q1 Profit Drops on Higher Programming Costs, International Losses

Profits at AMC Networks took a hit in the first quarter on higher programming and marketing costs for its domestic cable networks as well as red ink in its international division.

Operating income for the quarter fell 10.5% year-over-year to $232 million. Revenue was up 1.9% to $720 million. Earnings per share were in line with analysts’ expectations at $1.98.

AMC’s results reflected the first-quarter trend of weakness in ad sales. AMC’s domestic cablers — AMC, SundanceTV, IFC, We TV and BBC America — saw a 6.2% decline in advertising to $248 million. AMC said the drop was partly because of lower ratings delivery and the timing of original series.

Distribution revenue for the domestic cable group was up 9.8% to $368 million, driven by content licensing revenue.

AMC’s International and Other unit, which encompasses its international networks and IFC Films unit, saw revenue drop to $107 million. The division’s year-over-year loss widened to $19 million, an $11 million increase from Q1 2016. AMC attributed the loss to higher spending on digital initiatives and an increase in depreciation and restructuring expenses.

AMC Networks president-CEO Josh Sapan said the Q1 results “sets the stage for continued progress for the remainder of the year.” He cited the success of new and returning shows including AMC’s “Better Call Saul” and “The Son,” BBC America’s much-praised documentary series “Planet Earth II” and “Doctor Who,” IFC’s “Brockmire,” and WE tv’s Mama June.

“Our disciplined approach to investing in high-quality content is building our brands and positioning us well with advertisers and both traditional and new distribution platforms,” he said. “Looking ahead, we remain focused on costs coupled with smart content investments that will create value for our shareholders over the near and long-term.”

(Pictured: “Planet Earth II”)

More TV

  • Barclays Doubles Fund for Streaming Content

    Barclays Doubles Fund for Streaming Content to $256 Million

    Profits at AMC Networks took a hit in the first quarter on higher programming and marketing costs for its domestic cable networks as well as red ink in its international division. Operating income for the quarter fell 10.5% year-over-year to $232 million. Revenue was up 1.9% to $720 million. Earnings per share were in line […]

  • future man hulu josh hutcherson

    TV Roundup: 'Future Man' Season 2 Teaser Drops (Watch)

    Profits at AMC Networks took a hit in the first quarter on higher programming and marketing costs for its domestic cable networks as well as red ink in its international division. Operating income for the quarter fell 10.5% year-over-year to $232 million. Revenue was up 1.9% to $720 million. Earnings per share were in line […]

  • Megyn Kelly

    Megyn Kelly, NBC News Near $30 Million Contract Settlement

    Profits at AMC Networks took a hit in the first quarter on higher programming and marketing costs for its domestic cable networks as well as red ink in its international division. Operating income for the quarter fell 10.5% year-over-year to $232 million. Revenue was up 1.9% to $720 million. Earnings per share were in line […]

  • Northern Exposure

    'Northern Exposure' Revival in Development at CBS

    Profits at AMC Networks took a hit in the first quarter on higher programming and marketing costs for its domestic cable networks as well as red ink in its international division. Operating income for the quarter fell 10.5% year-over-year to $232 million. Revenue was up 1.9% to $720 million. Earnings per share were in line […]

  • Chris Williams Strictly Business Podcast

    Listen: How Pocket.watch Disrupted the Holiday Toy Biz

    Profits at AMC Networks took a hit in the first quarter on higher programming and marketing costs for its domestic cable networks as well as red ink in its international division. Operating income for the quarter fell 10.5% year-over-year to $232 million. Revenue was up 1.9% to $720 million. Earnings per share were in line […]

  • Mark burnett Roma Downey

    Mark Burnett, Roma Downey Recall Their Terrifying Malibu Evacuation

    Profits at AMC Networks took a hit in the first quarter on higher programming and marketing costs for its domestic cable networks as well as red ink in its international division. Operating income for the quarter fell 10.5% year-over-year to $232 million. Revenue was up 1.9% to $720 million. Earnings per share were in line […]

  • Channing Dungey's ABC Exit Is a

    Why Channing Dungey's Exit From ABC Is a Sign of the Times

    Profits at AMC Networks took a hit in the first quarter on higher programming and marketing costs for its domestic cable networks as well as red ink in its international division. Operating income for the quarter fell 10.5% year-over-year to $232 million. Revenue was up 1.9% to $720 million. Earnings per share were in line […]

More From Our Brands

Access exclusive content