MUMBAI: US media company AMC Networks‘ third quarter net revenue increased $12 million, or 4.6 per cent, to $284 million over the third quarter of 2010, led by 3.9 per cent growth at National Networks.

Adjusted operating cash flow totalled $123 million, an increase of 14.6 per cent, or $16 million versus the prior year period. The AOCF increase resulted from 16 per cent growth at National Networks partially offset by a $1 million decline in AOCF at International and Other.

Operating income was $94 million, an increase of 22.8 per cent or $18 million versus the prior year period. The operating income increase resulted from 24.1 per cent growth at National Networks partially offset by a $1 million increase in the operating loss at International and Other.

AMC president, CEO Josh Sapan said, "The core of our growth strategy continues to be our investment in original programming. The Walking Dead season two premiere, which was the highest rated dramatic show ever in basic cable history against key adult demos, and our performance in the 2011-2012 upfront, underscores the strength of this strategy. In September, AMC also won a record fourth consecutive Primetime Emmy Award for Outstanding Drama Series for ‘Mad Men‘. Our programming successes are reflected in solid financial results as we continued to increase net revenues, AOCF and operating income in the third quarter."

For the nine months ended 30 September 2011, net revenues increased $69 million, or 8.8 per cent to $849 million, AOCF increased $33 million, or 11.1 per cent to $335 million, and operating income increased $38 million, or 18 per cent to $247 million, all compared to the prior year period.

Third quarter net income from continuing operations was $40 million ($0.56 per diluted share), compared with $34 million ($0.49 per diluted share) in the third quarter of 2010. The increase resulted from the growth in operating income and a decrease in income tax expense partially offset by an increase in interest expense.1 Net income from continuing operations for the nine months ended September 30 2011 was $97 million ($1.38 per diluted share), compared with $88 million ($1.28 per diluted share) in the prior year period.

Net cash provided by operating activities was $202 million for the first nine months of 2011, an increase of $8 million from the prior year period. The increase was the result of the improved operating performance and a reduction in cash interest payments partially offset by increased working capital and income tax payments.

Free cash flow for the first nine months of 2011 was $195 million, an increase of $8 million from the prior year period. The results reflect the increase in net cash provided by operating activities and flat capital expenditures over the prior year period.

National Networks consisting of the company‘s four US distributed programming networks, AMC, WE tv, IFC and Sundance Channel Networks, revenues for the third quarter increased by 3.9 per cent to $258 million, AOCF rose by 16 per cent to $123 million, and operating income grew 24.1 per cent to $99 million, all compared to the prior year period.

National Networks revenues for the nine months ended 30 September 2011 increased by 7.6 per cent to $777 million, AOCF rose by 9.9 per cent to $346 million, and operating income grew by 15.5 per cent to $272 million, all compared to the prior year period.

Growth in third quarter revenues was primarily led by a 6.9 per centincrease in affiliate and other revenues. The increase in affiliate and other revenues was primarily attributable to increases in affiliate rates and viewing subscribers at AMC and WE tv as well as a non-recurring contractual adjustment that benefited Sundance Channel and IFC results.

Advertising revenues in the quarter were essentially flat primarily due to the absence of Mad Men, which aired on AMC in the prior year period. For the nine months ended 30 September 2011, ad revenues grew by 11.6 per cent over the comparable prior year period.

Third quarter AOCF increased by 16 per cent to $123 million reflecting the increase in revenues as well as a decrease of 5.1 per cent in operating expenses. The decrease in operating expenses was primarily attributable to lower marketing and corporate expenses partially offset by an increase in programming expenses as compared to the prioryear period.

Operating income totaled $99 million, an increase of $19 million or 24.1 per cent. The increase reflects the growth in AOCF as well as a reduction in amortisation and share based compensation expense.

International and Other consisting of AMC/Sundance Channel Global, the company‘s international programming business; IFC Films, the company‘s independent film distribution business; AMC Networks Broadcasting and Technology, the company‘s network technical services business; and Voom HD.

International and Other revenues for the third quarter of 2011