AMC Networks net income falls, but tops estimates
NEW YORK (AP) — Shares of AMC Networks Inc. jumped to a new high Thursday after the network posted third-quarter results that beat Wall Street estimates.
AMC's net income fell 8 percent in the latest quarter, hurt by its dispute with Dish Network LLC, while its revenue rose 17 percent. But its earnings and revenue were each significantly better than analysts expected
AMC and Dish resolved their dispute in October, which was after AMC's third quarter ended.
Dish had stopped carrying the channels on July 1. AMC said the move affected about 13 percent of its subscribers. As part of the settlement, which also involved Cablevision Systems Corp., Dish agreed to pay AMC and Cablevision $700 million and resume carrying the AMC, IFC, WE tv, and Sundance Channels and Cablevision's Fuse network.
AMC said its net income fell to $36.6 million, or 51 cents per share, for the three months ended Sep. 30. That's down from $40 million, or 55 cents per share, a year earlier.
Revenue grew to $332.1 million from $283.9 million on increased digital and licensing distribution revenue.
Analysts expected AMC to report earnings of 38 cents per share and $291.4 million in revenue, according to FactSet.
The company said demand for its shows remains strong. It said the zombie survival series "The Walking Dead" is doing particularly well and has been the biggest show of the fall season among viewers 18 to 49. The third season of "The Walking Dead" premiered Oct. 14.
Shares of AMC Networks rose $4.07, or 8.4 percent, to $52.51 in afternoon trading after rising as high $55.38 earlier in the session, a new high.