AMC Networks’ second-quarter net revenues rose 3.8% to $711 million but operating income fell slightly.
The increase in net revenues reflected 5.6% growth at National Networks and a decrease of $7 million at International and Other.
Operating income was $176 million, down 1.3% from the year-ago quarter, amid an increase of 11.9% at National Networks revenues and a $31 million operating loss at International and Other. The company’s second-quarter results include impairment charges of $17 million related to AMCNI-DMC, the company's Amsterdam-based media logistics facility.
While operating income slipped, AMC’s net income was $103 million, up from $77 million during the year-ago quarter.
"Our financial and operating performance in the second quarter and for the year, thus far, has been strong and we remain on track to deliver on our full-year total company outlook," said AMC Networks President and CEO Josh Sapan in a statement. "The success of our long-term focus on investing in marquee content and in distinctive, vibrant brands that attract passionate and engaged fans is reinforced by our wide distribution on new virtual MVPDs, including most recently YouTube TV; being home to four of the top five dramas on basic cable; and with Emmy nominations that span our networks and genres, including nominations for AMC's Better Call Saul, IFC's Documentary Now! and BBC AMERICA's Planet Earth II. In addition, we continue to partner with our traditional distributors on innovative initiatives that support the cable ecosystem, including our new AMC Premiere offering to Comcast Xfinity TV customers, and our AMC Studios co-production partnership with Charter."
For National Networks—the segment that houses AMC, WE tv, BBC AMERICA, IFC and SundanceTV; and television production company AMC Studios—revenue increases stemmed in part from a 7.8% increase in distribution revenues, due to an increase in licensing revenues as well as an increase in affiliate fees. Advertising revenues also rose 2.6%.