AMC Ad Revs Soar 31%

Strong advertising fourth-quarter results, boosted from “The Walking Dead,” lifted AMC Network revenues for the period.

Ad revenues climbed 31% to $205 million -- due to overall growing demand from TV marketers, according to the company. Distribution fee revenues rose 9.4% to $199 million as a result of higher affiliate revenues, as well as improvements from licensing revenues.

“The advertising growth were even more impressive given some of the ad misses by its peer cable networks during 4Q earnings,” writes Michael Nathanson, media analyst for MoffettNathanson.

Says Vasily Karasyov, media analyst for Sterne Agee: “Advertising revenue came in significantly above our and the street estimates, but the write-off offsets the benefit to earnings.”

Still, Nathanson says there was some bigger-than-expected write-downs for cancelled shows “Low Winter Sun” ($52 million) and “The Killing” ($15 million).

Total net revenues for AMC Networks grew 19% to $435 million, with net income doubling to $35.4 million from $15.2 million. International business grew 7% to $34.9 million.

After the fourth-quarter reporting period, AMC Networks completed an acquisition of international TV/media company Chellomedia in January 2014, a deal valued at $1.0 billion.

AMC Networks stock was up 1.3% to $70.55 in mid-day trading.

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