AMC Networks said the coronavirus pandemic and a substantial impairment charge contributed to a significant decline in second quarter profit, the latest media company to show the signs of grappling with conditions that have scuttled TV production and slowed the flow of advertising.
The New York owner of the AMC, IFC and Sundance cable networks said net income fell to $15 million, or 28 cents a share, compared with $128.7 million, or $2.25 a share, in the year-earlier quarter period. Excluding one time items, including a $130 million impairment charge related to its international operations, adjusted earnings per share fell to $2.39 a share from $2.60 a share.
Revenue fell 16.3% to $646.3 million in the quarter, with revenue off 18% at its U.S. TV operations and down 10.3% at its international business and other segments.
But AMC Networks performed better than expected, as both revenue and earnings per share beat Wall Street’s estimates.
In a statement, AMC Networks CEO Josh Sapan said the company is “focused on our strategic priorities and are making progress on our
major initiatives – which include creating great content and monetizing that content across an expanding array of platforms.” He also said the company has “made particular progress” with subscription-video-on-demand services that include the horror-focused Shudder as well as Acorn TV.