AMC Networks Inc. (AMCX), the cable- programming company behind “Mad Men” and “The Walking Dead,” rose the most in four months after profit and sales topped estimates.
AMC shares climbed 8.5 percent to $52.57 at the close in New York, its biggest one-day gain since July 2, after the company released third-quarter results. The stock has risen 40 percent this year and is trading at its highest level since Cablevision Systems Corp. (CVC) spun off the company in June 2011.
AMC posted a 17 percent gain in revenue, boosted by the licensing of its shows to digital services such as Netflix Inc. (NFLX) AMC saw advertising sales jump 9.1 percent, helped by ratings at its most-watched show, “The Walking Dead,” a post-apocalyptic drama about a zombie outbreak.
Third-quarter earnings were 51 cents a share. That topped the 37 cents predicted by analysts, according to data compiled by Bloomberg. Revenue was $332.1 million, exceeding the average projection of $287.4 million.
AMC’s operating cash flow decreased 11 percent to $110 million, impaired by a lack of affiliate revenue and an increase in litigation expenses from a dispute with Dish Network Corp. (DISH), which refused to carry New York-based AMC’s four cable networks -- AMC, WE TV, IFC and Sundance Channel -- citing low ratings.
AMC claimed Dish had pulled the networks in response to a breach of contract lawsuit stemming from 2008. Dish settled the lawsuit last month, paying AMC and Cablevision Systems Corp. $700 million while agreeing to again carry the networks.
To contact the reporter on this story: Alex Sherman in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Nick Turner at email@example.com