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AMC Networks Stock Jumps on Third-Quarter Earnings Beat

AMC Networks, distributor of '“The Walking Dead” series,' sees its shares come alive on a third-quarter earnings beat.
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AMC Networks  (AMCX)  climbed Friday after a surge in revenue helped the parent of AMC, Sundance TV and IFC, and distributor of “The Walking Dead” series, beat Wall Street's third-quarter earnings expectations.

Shares of the New York TV network operator at last check were up 14% to $49.15.

AMC Networks reported net income of $110.6 million, or $2.60 a share, up from $61.6 million, or $1.18 a share, a year earlier. Adjusted earnings came to $2.68 a share, more than double the FactSet consensus of $1.18 a share.

Revenue increased 24% from a year earlier to $811 million, driven by growth in content licensing, streaming and advertising revenue, the company said. The figure beat the FactSet consensus of $706.1 million.

Revenue at AMC Networks’ domestic operations totaled $683 million, up 25% from a year earlier.

Streaming revenue increased 14%. AMC Networks says it is “on track” to reach its year-end streaming subscriber target of 9 million paid customers across its subscription-video-on-demand platforms: AMC+, Acorn TV, Shudder, Sundance Now and Allblk.

Ad revenue increased 22% to $200 million due to higher pricing and ad-supported streaming growth, and an increase in the number of episodes of original programming,

International and other revenue for the third quarter increased 17% from a year earlier to $130 million.

"We are building a streaming business that is sustainable and will be profitable over the long term," Interim Chief Executive Matt Blank said in a statement. 

"[And] with our owned [intellectual property], our library of high-quality content, and our strong legacy channels business, we have the right assets to drive growth and increase shareholder value."