The cable programming company’s shares fell 10.4% in initial trading this morning after it released Q4 financials. AMC Networks says it generated $15.2M in net income in the quarter, -48.5% vs the previous year, on revenues of $366.7M, +8.2%. Analysts expected revenues to be closer to $370.1M. And earnings at 21 cents a share fell short of forecasts for 65 cents. AMC says it missed about $31M in affiliate fees in Q4 as a result of the fight with Dish Network, which kept AMC Networks’ channels off the No. 2 satellite service for several months ending November 1. Since the breach of contract dispute involved the defunct VOOM suite of HD channels, the litigation expenses show up in the International and Other unit where revenues fell 16.9% to $32.6M and operations ended up with a $4.3M loss from last year’s $6.9M profit. Over at the main National Networks business, revenues were up 10.8% to $338.6M with an operating cash flow of $106.7M, +5.6%. AMC says that ad sales were up 16% to $157M “due to strong demand for our original programming, primarily at AMC.” Distribution revenues were up 6.8% to $182M. But the company notes that it had to shoulder higher programming and marketing expenses as well as the temporary loss of carriage on Dish. Separate from the operations, AMC says that it expects to evenly split with Cablevision — its former parent — the $700M settlement that Dish paid to resolve the litigation. But the company warns that the final amount “is yet to be determined and may be significantly less than $350 million.” All in all, the company had “strong financial results for the full year” which “gives us confidence that we are well-positioned for continued success in the year ahead,” says CEO Josh Sapan.
By DAVID LIEBERMAN, Financial Editor | Tuesday February 26, 2013 @ 8:46am ESTTags: AMC Networks, Dish Network
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