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AMC books double-digit growth for Q4

Michelle Clancy

AMC Networks has sailed to double-digit gains in revenue on the back of strong domestic advertising growth and international success.

In its fourth-quarter 2014 earnings call, the basic cable network reported a 40% rise in net revenues to $609 million, thanks to a 19.7% rise at its main domestic properties: AMC, WE tv, BBC AMERICA, IFC and SundanceTV.

Ad revenue alone climbed 24.3% to $255 million, and content distribution fees rose 15.3% to $245 million.

Meanwhile, the international segment rocketed fivefold, reaching $110.3 million from $17.9 million, mostly thanks to the company’s acquisition of Chellomedia from Liberty Global.

Over the full year, AMC Networks net revenues grew 36.7% to $2.18 billion, lifted by 13.5% growth at national networks to $1.74 billion and a 677% jump internationally to $434.2 million.  

Operating income decreased 6.2% to $546 million from $582 million in 2013, when a litigation settlement gain from Voom HD of $133 million was recorded in the second quarter that year.

“The fourth quarter and full-year 2014 was strong for AMC Networks with double-digit percentage increases in our revenue and cash flow," said president and CEO Josh Sapan, "The strong performance of our original programming with record ratings at our national networks has led to continued increases in affiliate fees and advertising revenues.”

The company’s BBC America joint venture is "another important and valuable network to our portfolio, delivering high-quality programming that attracts audiences and will drive additional opportunities for growth domestically” he added. He also said that "International expansion continues to be a focus and we believe our Chellomedia acquisition provides a strong platform for our content, enabling us to capitalise long term on international pay TV growth and drive long-term value for our shareholders."