International revenue not in tune for cable TV giant
AMC Networks, known for shows such as 'Mad Men' and 'The Walking Dead', reported a drop in revenue from its international business for the first time in nine quarters, sending its shares down more than 5pc in early trading yesterday.
Overall quarterly revenue and profit handily beat market estimates, due mainly to the inclusion of the company's stake in BBC America, which it bought in October.
But revenue in AMC Networks' international business fell 9.4 to $112.9m (€1.03m) in the second quarter ended June 30, marking the first drop since the first quarter of 2013.
AMC Networks' shares were down 5.7pc at $74.27 in early trading yesterday.
The company paid $200m for a 49.9pc stake in BBC America and took operational control of the cable TV channel, which reaches 80m US homes and airs popular drama series such as 'Doctor Who' and 'Orphan Black'.
AMC Networks said revenue in its national networks unit, which includes BBC America, rose 22.7pc to $488.6m, helped by growth in both distribution and advertising revenues.
Ad revenue in the unit, which also includes the IFC, WE tv and SundanceTV channels, rose 13.4pc to $186m while distribution revenue jumped 29.3pc to $303m.
AMC aired the series finale of "Mad Men" during the quarter, bringing down the curtain after seven seasons.
The company has been spending heavily on original programming in an effort to match the success of 'Mad Men' as well as concluded hits such as 'Breaking Bad'.
Its new sci-fi show, 'Humans', was launched in the quarter.
Net income attributable to AMC Networks shareholders rose to $83m, or $1.14 per share, in the quarter, from $58.7m, or 83 cents per share, a year earlier.
Total net revenue rose 15.1 pc to $601.1m.
Analysts on average had expected a profit of 88 cents per share and revenue of $588.2m. (Reuters)