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AMC Networks warned on Tuesday that second-quarter US ad revenue will be down about 30 percent as the season 10 finale of “The Walking Dead” gets pushed back amid the coronavirus crisis. The broadcasting giant, which operates AMC, IFC, WE tv, BBC America and SundanceTV, likewise cited delays in the debut of its new spinoff …
AMC Networks warned on Tuesday that second-quarter US ad revenue will be down about 30 percent as the season 10 finale of “The Walking Dead” gets pushed back amid the coronavirus crisis.
The broadcasting giant, which operates AMC, IFC, WE tv, BBC America and SundanceTV, likewise cited delays in the debut of its new spinoff series “World Beyond” as it posted lower first-quarter results, as fallout from the coronavirus shrank its US advertising revenue nearly 11 percent.
AMC said Tuesday that it began to feel the impact of the virus on its business in mid-March. Although viewership of its networks saw a “significant” increase as coronavirus lockdowns took hold, ad revenue dropped, said Chief Executive Josh Sapan.
“Beginning in mid-March, the company experienced adverse advertising sales impacts and suspended content production, which has led to delays in the creation and availability of some of its television programming,” Sapan said, adding that ad categories like travel, auto, restaurants and movies had been particularly hard hit.
A 10.8 percent decline in ad sales to $213 million weighed down total revenue, which fell 6.4 percent to $734.4 million. Wall Street was looking for EPS of $1.86 on revenue of $739 million.
In the first quarter, the company said net income slid to $68.7 million, or $1.22 a share from $143.4 million, or $2.48, a year earlier. Adjusted EPS totaled $1.47.
Despite the results, AMC’s stock rose nearly 3 percent in early trading Tuesday.
