The owner of AMC, Sundance and IFC cable channels declined 4.4 percent to $44 at the close in New York for the biggest one- day drop since Sept. 2.
Net income rose 53 percent to $29.5 million, or 41 cents a share, from $19.3 million, or 28 cents, a year earlier, New York-based AMC said today in a statement. Excluding interest expenses and restructuring charges, profit of 40 cents a share missed the 60-cent average of analysts’ estimates compiled by Bloomberg.
Marketing the return of “Mad Men” and “The Killing” weighed on AMC’s profit. The company is spending between $10 million and $15 million on campaigns ahead of the shows’ new seasons later this month. “The Walking Dead,” the most-watched scripted show on cable among younger viewers sought by advertisers, ends its second season March 18.
“We think the quality of AMC’s programming will amplify top-line growth as well as content expenses in 2012 as ‘Mad Men’ returns and as new shows are premiered,”Rich Tullo, an analyst with Albert Fried & Co. in New York, wrote in a March 12 note.
Revenue was $339 million compared to $298.5 million a year earlier. That compared to an average estimate of $330.9 million in a Bloomberg survey.
(AMC executives will discuss financial results on a conference call at 10 a.m. New York time. To participate, dial +1-877-347-9170 and enter code 48964730.)
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