AMC Networks, which officially spun off from Cablevision to become an independent public company on June 30 this year, posted increased revenues in its first quarterly financial results as a standalone company.
The results showed a second quarter net revenue increase of US$32 million over second quarter 2010, to $292 million. AMC attributed that growth to a 10.5% increase in net revenues for its national networks division (AMC, WE tv, IFC and Sundance Channel) and a 29.5% increase in net revenues for its “international and other” division, which includes AMC/Sundance Channel Global, IFC Films, AMC Networks Broadcasting & Technology and VOOM HD.
The company says growth in revenue was primarily led by a 21.3% increase in advertising revenue, spearheaded by AMC and WE tv, which saw an increase in pricing from the previous year period, and to a lesser extent, by an increase at IFC.
Adjusted operating cash flow (AOCF) increased 9.2% over last year’s second quarter to $112 million. Second quarter net income from continuing operations, however, fell from $31 million last year to $27 million this year, stemming from $20 million of costs related to the redemption of debt in connection with the spin-off from Cablevision, partially offset by reductions in interest expense and income tax expense.
“For the second quarter of 2011, AMC Networks delivered solid increases in net revenues and AOCF, driven primarily by the ongoing strength of our national networks,” said AMC Networks president and chief executive officer Josh Sapan. “With a record 31 Primetime Emmy nominations this year, we continue to focus on investing in quality original programming to drive ratings, differentiate our brands and provide value to our distributors and advertisers.”