AMC Networks Ad Revenue Jumps on Demand for Original Programming

By Michael Calia 

AMC Networks Inc., whose cable offerings include "Better Call Saul" and "The Walking Dead," said that advertising revenue surged in the most recent quarter due in large part to strong demand for original programming at its namesake cable channel.

The company's results exceeded analysts' expectations.

AMC Networks has sought to weather the end of "Breaking Bad" and the coming conclusion of its acclaimed "Mad Men" by tapping into its hit properties to create new programming. "Better Call Saul," a spinoff prequel from "Breaking Bad," has scored high ratings in its early going, while "The Walking Dead" continues to dominate. A spinoff series from "The Walking Dead" is on the way as well.

The company's national networks division--which includes AMC and WE tv, among others--posted a 20% jump in revenue to $499.8 million as advertising revenue jumped 24% to $255 million.

The company's growth strategy has included acquisitions and partnerships, as well as international expansion. Its deal for Chellomedia, which it acquired from Liberty Global last year, has boosted revenue, and the company said in the fall that it agreed to buy a 49.9% stake in BBC America. Earlier this month reached a deal with Dish Network Corp. to include its popular series on the pay-TV provider's Sling TV streaming service.

AMC Networks' international segment's revenue surged to $110.3 million from $17.9 million a year earlier.

For the period ended Dec. 31, the company posted a profit of $77.6 million, or $1.06 a share, up from $35.4 million, or 49 cents a share, a year earlier.

Revenue rose 40% to $609.4 million.

Analysts had projected 99 cents a share in earnings and $602 million in revenue.

Write to Michael Calia at [e-mail]

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