Bloomberg News

AMC Falls Most Since September as Profit Trails Estimates

March 15, 2012

AMC Networks Inc. (AMCX), spun out of Cablevision Systems Corp. (CVC) in June, fell the most since September after reporting fourth-quarter profit that missed analysts’ estimates.

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.)

To contact the reporters on this story: Andy Fixmer in Los Angeles at; Edmund Lee in New York at

To contact the editor responsible for this story: Anthony Palazzo at

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