• by Wayne Friedman , May 5, 2017

AMC Networks has followed in the path of most other TV network groups -- posting declining advertising revenues in its recent quarterly earnings period.

AMC national TV networks sank 6% to $248 million in its fiscal first-quarter period, somewhat steeper than analyst estimates, while AMC was running its big “Walking Dead” series.

Overall, during the period, demographic ratings for all AMC networks -- the Nielsen C3 18-49 metric -- was down 2% during the period, with total viewer ratings inching up 1%.

“While total AMC [Networks] audience performance is very lumpy based on timing, those three factors together (negative advertising revenue, below expectations, in a quarter with ‘Walking Dead’) carry a lot of weight with the short-minded investors (or nervous long-minded investors),” says Todd Juenger, media analyst for Bernstein Research.

Better news for AMC came from its distribution fees during the period, rising 10% to $368 million. Overall revenues grew 2% to $720 million, while net income grew 20% to $136 million.

Despite these weak advertising results, Juenger expects a huge reversal in AMC's second fiscal quarter when it comes to domestic advertising revenue. He expects it to up 19% versus the similar period the year before.

Juenger says this will driven by a huge increase in original programming hours, which has brought with it strong viewership. Additionally, the big-rated “Fear the Walking Dead” is returning in June.