The network's shares slid 12 percent on news of overwhelming costs and underwhelming profits, as it continues to seek a show with viewing figures to rival its zombie mega-hit
AMC networks has one genuine blockbuster show under its belt with the smash success of The Walking Dead, but its costly search for another hit has put shareholders on edge.
The network’s sales climbed 37% last quarter to $524.6 million, but its expenses galloped at even faster clip, climbing 48% to $376.9 million.
It has invested heavily in a new line-up of shows, including a Breaking Bad spinoff, which analysts fear could take a zombie-like chomp out of the company’s profit margins. It’s unlikely Better Call Saul will reach the popularity of The Walking Dead, which became the top-rated Sunday night show among viewers aged 18 to 49 during its fourth season last fall.
AMC’s shares fell 12% on news of the first quarter earnings, Bloomberg reports, following a record 18% drop on Wednesday.