AMC Networks reported higher second-quarter profits, posting gains in subscribers to its streaming services and a jump in advertising revenue.
Net income rose to $35.885 million, or 83 cents a share, from $14.961 million, or 28 cents a share, a year ago.
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Revenue rose 19% to $771 million.
Operating income for AMC’s domestic operation fell 59.5% to $88 million. Adjusted operating income was up 5.8%. Revenue was up 13.5%.
Subscription revenues increased 21% as the number of paid subscribers increased. There was also a one-time benefit from a distribution agreement renewal. Excluding the renewal, subscription revenue was up 17%.
The company reaffirmed that it expected to have 9 million streaming subscribers by the end of the year and between 20 and 25 million by 2025.
The company said AMC Plus was its fastest-growing subscription service in the quarter. CEO Josh Sapan said the company has made a deal with Verizon to have AMC Plus distributed on its FioS and mobile services. The company will also be distributing AMC Plus in Canada, he said.
Domestic advertising revenue rose 13% to $212 million. Distribution revenue rose 14% to $427 million, helped by the renewal.
Content licensing revenue decreased 10%.
The company paid $200 million to settle a lawsuit with Walking Dead producer Frank Darabount and others in July. The impact of that settlement will affect AMC’s earnings later in the year.
“AMC Networks had a strong second quarter with impressive financial results domestically as well as internationally, driven by robust growth in revenue for our targeted streaming services, particularly strong advertising growth, and high demand for our world-class content,” Sapan said.
“We continue to advance our position as the worldwide leader in targeted streaming, with high subscriber satisfaction and strong consumption for our services," Sapan added. "AMC Plus, our premium bundled offering, has quickly become our fastest-growing service, driven by expanding distribution and the strong, character-driven dramas that power it. Our streaming momentum and our expanding advertising efforts are enabling us to continue to meaningfully reconstitute the revenue mix of our company and to deliver continued growth and shareholder value.”
