AMC Networks profit beats estimates but revenue falls short

AMC Networks Inc. posted better-than-expected profit for the first quarter on Friday, but revenue fell short of estimates. The network said it had net income of $237.9 million, or $2.02 a share, in the quarter, up 7% from $222.5 million, or $1.22 a share, in the year-earlier period. Excluding restructuring charges and other special items, adjusted per-share earnings came to $2.98, a full dollar ahead of the $1.98 FactSet consensus. Revenue fell 5.8% to $691.7 million from $734.4 million, missing the $724.0 million FactSet consensus. The company overhauled its reporting of operating segments in the quarter, to reflect a reorganized operating structure focused on a multi-platform distribution approach. Streaming services and IFC Films are now included in domestic operations, and not international and other, as they were before. The company booked restructuring charges of $4.1 million in the quarter, relating to severance and other personnel costs, as well as $4.5 million relating to costs to terminate distribution in certain territories. Shares were not yet active premarket, but have gained 27% in the year to date, while the S&P 500 has gained 11.9%.

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