AMC stock drops 12% on Q4 earnings report
Shares in AMC Networks (Nasdaq: AMCX) dropped more than 12 percent Tuesday morning after it posted $15 million in net income for the fourth quarter, down $14 million compared to this time last year.
The company's earnings were impacted by the repayment of debt and its carriage dispute with Dish Network (Nasdaq: DISH), which left AMC unable to reach Dish homes in September and October. AMC said its adjusted operating cash flow fell 4 percent to $103 million, and it attributed the decrease to the impact of the Dish dispute, which it settled in late October.
In addition to the Dish deal, AMC signed carriage agreements last year with Comcast (Nasdaq: CMCSA), Verizon (NYSE: VZ), AT&T (NYSE: T) and Suddenlink Communications, CEO Josh Sapan said. AMC signed a temporary extension of its distribution agreement with Time Warner Cable (NYSE: TWC) at the end of December, avoiding blackout.
"We enjoy a very good relationship with them [Time Warner Cable], so we are in very, very regular conversations with them, so we're hopeful that we'll reach a firm and final agreement in the natural order," Sapan told analysts on the company's earnings call Tuesday.
AMC stock was trading at $51.01 at 11:11 a.m. ET, down $7.06 , or 12.17 percent.
- see the release
Special Report: Cable in the fourth quarter of 2012
Voom deal makes Dish Network biggest holder of MVDDS broadband wireless spectrum
Dolan, Sapan testify at opening of Voom trial
AMC threatens to pull networks from Verizon FiOS TV homes