NEWS: AMC Networks Inc. shares sank Thursday after the cable company said that increased expenses offset gains from its popular shows such as "Breaking Bad" and "Walking Dead", leading to a disappointing third quarter.
DETAILS: The company, which owns networks such as AMC, WE, IFC and Sundance channel, has had tremendous success with some of its original programing. That led to an advertising surge that boosted its national network revenue by 20 percent. Its international revenue increased 7 percent, largely on higher affiliate fees. But the company was weighed down by increased programing and marketing expenses for its national networks and increased expenses for IFC films in its international segment.
NUMBERS: Net income jumped to $58.1 million, or 80 cents per share, for the quarter. That is up from $36.6 million, or 51 cents per share, last year. Revenue increased 19 percent to $395.3 million. Analysts polled by FactSet expected earnings of 85 cents per share on revenue of $397.2 million.
FUTURE: AMC announced in October that it is acquiring Chellomedia, the international content division of Liberty Global PLC for 750 million euros ($1.04 billion). The deal is expected to close in the first quarter. The company expects that this acquisition will further help it expand internationally, which it said is a key component for its long-term success.
STOCK: Shares fell $3.77, or 5.2 percent, to $68.58 in afternoon trading. Its shares are still up 46 percent so far this year.
- Investment & Company Information