AMC Networks' first
earnings report as a public company showed strong advertising gains -- just like many other cable networks -- and big gains in its stock price.
AMC Networks, which was spun off from
cable operator Cablevision Systems Corp on June 30, witnessed a 21.4% hike in advertising revenue in the second quarter for its national networks, which includes AMC, WE tv, IFC and Sundance.
While advertising revenue was strong -- benefiting from higher rates versus the year before -- affiliate revenue moved more slowly, only up 3.8%. Most of the affiliate growth came from AMC and WE tv.
Overall, its national networks grew 10.5% in revenue to $266.7 million with operating income up 11.4% to 92 million.
International networks revenue grew 29.5% to $30.2 million. Growth came from
theatrical and digital film revenue at IFC Films and affiliate fees.
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President and CEO Josh Sapan stated that the network continues to "focus on investing in quality original programming to
drive ratings, differentiate our brands and provide value to our distributors and advertisers."
For the company as a whole, AMC Networks' net income grew 23% to $27.2 million from $22.1 million
and revenues climbed 12.3% to $292 million from $260 million.
AMC had 97 million subscribers at the end of the second quarter; WE tv was at 77.3 million; IFC at 62.2 million; and Sundance at
40.3 million.
AMC Networks' stock was up 7.3% in mid-day trading to $32.50.