AMC Networks posted strong fourth-quarter
advertising business -- but net profits were hurt by last year's protracted dispute and carriage removal with satellite TV distributor Dish Network.
Advertising revenues in the fourth quarter of 2012 witnessed a 16% rise to $157 million, with distribution revenues up less than half that rate, 6.8%, to $182 million. Total national networks' quarterly revenue gained 10.8% to $339 million. AMC's national networks revenues for the fourth quarter of 2012 increased 10.8% to $339 million.
Because of its dispute with Dish -- related to AMC Network's VOOM HD network -- Dish removed AMC, IFC, and WE tv on July 1, causing financial disruption. Dish removed Sundance Channel on May 20.
The company said: "The temporary carriage termination had a material impact to AOCF [Adjusted Operating Cash Flow] and operating income for the three months and 12 months ended December 31, 2012."
Net income for AMC was cut in half for the period to $15.2 million from $29.4 million in the fourth quarter of 2011. For the year, AMC's net income was up a little under 10% to $136.5 million from $126.5 million.
Going forward, Dish Network revenues could have an impact on AMC: "The affiliate fees payable by Dish Network to [AMC] from the effective date of the affiliation agreement of October 21, 2012 through December 31, 2013 are below fair value by approximately $31 million..."
For the full year 2012, AMC Networks had a 16.9% increase in advertising revenues to $523 million -- primarily from the AMC Network itself. Its shows include "The Walking Dead," "Freakshow" and "Comic Book Men." Distribution and other revenues gained 15.2% to $731 million -- most of this from digital and licensing distribution revenues as well as increases in affiliate fees.