AMC Networks, Inc. (NASDAQ:AMCX) Q2 2021 Earnings Conference Call August 6, 2021 8:30 AM ET Company Participants Nick Seibert - IR Josh Sapan - President and CEO Ed Carroll - COO Chris Spade - CFO Conference Call Participants Tim Nollen - Macquarie Michael Nathanson - Moffett Thomas Yeh - Morgan Stanley Michael Morris - Guggenheim Steven Cahall - Wells Fargo Operator Good day, and thank you for standing by. Welcome to the AMC Networks' Second Quarter 2021 Earnings Conference Call. At this point, I would lik ...

Revenue Performance - Domestic Operations revenue for Q2 2021 was $639.0 million, up 13.4% from $562.9 million in Q2 2020[102]. - International and Other segment revenue increased to $138.3 million in Q2 2021, a 52.5% rise from $90.7 million in Q2 2020[102]. - Consolidated net revenues for the first half of 2021 reached $1.46 billion, compared to $1.38 billion in the same period of 2020, reflecting a 6.0% growth[102]. - Consolidated revenues for the three months ended June 30, 2021, were $771,392 thousand, a 19.4% increase from $646,291 thousand in the same period of 2020[114]. - Domestic Operations revenues rose by $76.1 million, or 13.5%, driven by a $24.8 million increase in advertising revenues and a $51.2 million increase in distribution and other revenues[122][123]. - International and Other revenues increased by $47.6 million, or 52.5%, with advertising revenues up by 75.3% and distribution revenues up by 48.0%[125]. - Net revenues increased to $1,463,133,000 for the six months ended June 30, 2021, representing a 6.0% increase from $1,380,666,000 in the same period of 2020[151]. - Domestic Operations revenues accounted for 83.0% of total revenues, with a slight increase of 3.2% to $1,212,984,000 compared to $1,174,825,000 in 2020[151]. - International and Other revenues rose by 20.4% to $259,444,000, up from $215,510,000 in the prior year[151]. Operating Income and Expenses - Operating income for Domestic Operations decreased to $88.1 million in Q2 2021 from $217.6 million in Q2 2020, a decline of 59.5%[102]. - Adjusted Operating Income (AOI) for Domestic Operations was $250.1 million in Q2 2021, compared to $236.4 million in Q2 2020, an increase of 5.0%[102]. - Consolidated AOI for the first half of 2021 was $488.6 million, up 9.1% from $447.7 million in the first half of 2020[102]. - Total operating expenses for the three months ended June 30, 2021, were $703,136 thousand, a 17.7% increase from $597,489 thousand in the same period of 2020[114]. - Total operating expenses for the six months ended June 30, 2021, were $1,225,169,000, an increase of $66,275,000 or 5.7% from $1,158,894,000 in the same period of 2020[144]. - Selling, general and administrative expenses increased by $43.5 million, or 28.0%, to $198.6 million, accounting for 25.7% of net revenues[129]. - Technical and operating expenses (excluding depreciation and amortization) increased by 11.7% to $150,104,000, compared to $134,326,000 in 2020[151]. Impairment and Charges - The company reported a significant impairment charge of $142.9 million in Q2 2021, compared to $130.4 million in Q2 2020[104]. - Impairment and other charges for the three months ended June 30, 2021, were $142,918 thousand, a 9.6% increase from $130,411 thousand in the same period of 2020[114]. - The Company recorded a charge of $143.0 million related to a settlement agreement, impacting operating income significantly[168]. - Restructuring and other related charges amounted to $8.8 million for the six months ended June 30, 2021[170]. Net Income and Tax - Net income attributable to AMC Networks' stockholders for the three months ended June 30, 2021, was $35,885 thousand, a 139.9% increase from $14,961 thousand in the same period of 2020[114]. - Net income for the six months ended June 30, 2021, was $122.9 million, compared to $79.5 million for the same period in 2020, representing a 55% increase[190]. - Income tax expense for the three months ended June 30, 2021, was $11,300,000, with an effective tax rate of 21%, down from $9,700,000 and an effective rate of 36% in the prior year[141][142]. - Income tax expense for the six months ended June 30, 2021, was $37.2 million, with an effective tax rate of 21%[179]. Cash Flow and Debt - Net cash provided by operating activities for the six months ended June 30, 2021, was $131.2 million, a decrease of 69% compared to $424.9 million for the same period in 2020[183]. - Net cash provided by investing activities was $42.0 million for the six months ended June 30, 2021, compared to a cash outflow of $(10.0) million in 2020[186]. - Net cash used in financing activities amounted to $64.2 million for the six months ended June 30, 2021, a significant reduction from $336.8 million in 2020[187]. - Total debt outstanding as of June 30, 2021, was $2.8 billion, with $0.7 billion subject to variable interest rates[195]. - The fair value of fixed-rate debt was estimated at $2.23 billion, exceeding its carrying value by approximately $60.3 million[194]. - Interest expense, net decreased by $2,100,000 due to lower average interest rates on outstanding senior notes[139]. - Interest rate swap contracts with notional amounts of $100 million were outstanding as of June 30, 2021, effectively fixing the interest rate on approximately 80% of the company's debt[195]. Strategic Initiatives and Risks - The company plans to continue increasing investment in original programming across all networks to drive higher audience ratings and revenues[105]. - The restructuring of operating segments reflects a focus on multi-platform distribution, with streaming services now included in Domestic Operations[99]. - The company faces risks including market demand fluctuations, competition in the streaming industry, and the impact of COVID-19 on operations[98]. - The company continues to monitor the impact of COVID-19 on its business but does not expect it to affect its liquidity position[109]. - The company expects advertising and distribution revenues to vary from quarter to quarter due to programming and market conditions[154]. - The Company expects AOI to vary from quarter to quarter due to fluctuations in revenues and operating expenses[175].

AMC Networks Inc. (NASDAQ:AMCX) Q1 2021 Earnings Conference Call May 7, 2021 8:30 AM ET Company Participants Nick Seibert - IR Josh Sapan - President and CEO Christina Spade - CFO Ed Carroll - COO Conference Call Participants Kutgun Maral - RBC Capital Markets Tim Nollen - Macquarie Michael Nathanson - MoffettNathanson Thomas Yeh - Morgan Stanley Michael Morris - Guggenheim Steven Cahill - Wells Fargo Operator Good day and thank you for standing by. Welcome to the AMC Networks First Quarter 2021 Earnings Ca ...

Financial Data and Key Metrics Changes - For the full year 2020, total company revenues declined 8% to $2.8 billion, with total company adjusted operating income at $767 million and free cash flow of $686 million [26][27] - In Q4 2020, total company revenue was $780 million, representing a decline of 1%, while adjusted operating income was $133 million [28] - The company reported $122 million in impairment charges, $86 million in programming expense write-downs, and $35 million in restructuring charges for the full year [27][35] Business Line Data and Key Metrics Changes - National Networks' revenues decreased 12% to $2.1 billion for the full year, with advertising revenue down 11% to $802 million [29][30] - International and Other revenues grew 2% to $747 million for the full year, with streaming revenue increasing 85% [32] - In Q4, National Networks' revenue decreased 3%, while International and Other revenue grew 8% to $216 million, driven by accelerating subscription streaming revenue [30][33] Market Data and Key Metrics Changes - The streaming run rate revenue increased from approximately $125 million at year-end 2019 to approximately $300 million at the end of 2020 [9][32] - The company anticipates over nine million paid subscribers by year-end 2021 and between 20 million to 25 million by 2025 [9][38] - The advertising market showed improvement in Q4, benefiting from special programming events and a strong scatter market [28][18] Company Strategy and Development Direction - The company aims to grow its streaming services, which are now the most significant growth area, and plans to expand internationally [10][14] - AMC Networks focuses on targeted content areas, such as British dramas and horror, to differentiate itself from larger general entertainment streaming services [12][13] - The strategy includes leveraging strong relationships with distributors and enhancing digital advertising opportunities [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenges posed by the pandemic and highlighted the importance of their content strategy [8][23] - The company expects 2021 to be a critical year for growth, with a focus on monetizing strong content across various platforms [23][38] - Management noted that the streaming services have a fundamentally different economic profile compared to general interest streaming services, which is expected to lead to better profitability [44][76] Other Important Information - The company repurchased 14.8 million shares for $354 million in 2020, with an average repurchase price of $23.91 per share [36] - The company fully monetized its stake in FuboTV, realizing gross cash proceeds of $96 million in January 2021 [37] - The company plans to invest in programming and marketing to support streaming revenue growth, expecting free cash flow to approximate $200 million in 2021 [38] Q&A Session Summary Question: Can you expand on the sequential improvement in affiliate revenues at the National Networks? - Management highlighted the changing nature of relationships with MVPD partners, emphasizing a new harmony that includes both linear and streaming discussions [42] Question: Can you share any updated views on streaming profitability? - Management noted that their streaming services have a different economic model, allowing for better profitability compared to general interest services [44] Question: Can you provide more detail on windowing content? - Management explained that windowing strategies vary by content and are guided by value for consumers [48] Question: How do you expect ARPU to trend over time? - Management expressed confidence in the stickiness of subscribers and the potential for ARPU growth as they expand their targeted services [63] Question: What are your thoughts on addressable advertising? - Management indicated that strong partnerships are essential for expanding addressable advertising, which has shown promising results in initial campaigns [68]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2020 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to | --- | --- | --- | |---------------------------------------------------------------------------------------|----------------------------------------------------- ...

AMC Networks Inc. (NASDAQ:AMCX) Q3 2020 Earnings Conference Call November 2, 2020 8:30 AM ET Company Participants Seth Zaslow – Investor Relations Josh Sapan – President and Chief Executive Officer Donna Coleman – Interim Chief Financial Officer Ed Carroll – Chief Operating Officer Conference Call Participants Michael Nathanson – MoffettNathanson Research Steven Cahall – Wells Fargo Michael Morris – Guggenheim Securities Kutgun Maral – RBC Capital Markets Brett Feldman – Goldman Sachs Operator Ladies and ge ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2020 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 1-35106 | --- | --- | --- | --- | |----------------------------------------------------------------------------|------------------------------- ...

Financial Data and Key Metrics Changes - For Q2 2020, total company revenue was $646 million, and operating income (OI) was $25 million, both exceeding expectations due to favorable domestic advertising performance and lower expenses [24][25] - Advertising revenue declined 15% to $187 million, impacted by the pandemic and timing of original programming, but demand was stronger than anticipated [25][26] - Total expenses decreased by $82 million or 22% year-over-year, primarily due to the suspension of production activities and lower program amortization [27][28] - GAAP EPS was $0.28, down from $2.25 in the prior year, while adjusted EPS was $2.39 compared to $2.60 in the prior year [30] Business Line Data and Key Metrics Changes - National Networks revenue was $496 million with an AOI of $210 million; advertising revenue was significantly impacted by the pandemic [25] - International and Other segment revenues were $161 million, a decrease of $19 million year-over-year, but AOI increased by $3 million due to targeted SVOD services [29] Market Data and Key Metrics Changes - The company noted a decline in subscription revenues in the low double-digits, attributed to the overall decline in Pay TV subscribers [26] - The targeted SVOD services experienced strong growth, with expectations to end the year with 3.5 million to 4 million subscribers, leaning towards the higher end of that range [12][66] Company Strategy and Development Direction - The company is focused on creating high-quality content and monetizing it across various platforms, particularly through targeted SVOD services [9][10] - AMC Networks is positioning itself to take advantage of the streaming landscape, emphasizing the compatibility of its niche services with larger SVOD platforms [14][19] - The company is also expanding its digital advertising presence and exploring addressable advertising opportunities [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the pandemic's challenges, citing a strong balance sheet and healthy free cash flow [38] - The outlook for Q3 anticipates continued variability due to the pandemic, with advertising revenue expected to decline in the mid-to-high teens year-over-year [34][35] - Management remains cautious about future performance due to the fluid nature of the pandemic and its impact on production and advertising [34][36] Other Important Information - The company received 18 Emmy nominations, highlighting its ability to produce compelling content that resonates with audiences [19] - AMC Networks is adapting to viewer consumption patterns by launching products like AMC Select, which offers on-demand programming [23] Q&A Session Summary Question: Was Q2 demand for advertising stronger than expected? - Management confirmed that the scatter market was relatively healthy, with some categories being aggressive, leading to better-than-expected pricing and ratings [41][42] Question: How is the board thinking about public versus private benefits? - Management refrained from commenting on public versus private status but highlighted strong free cash flow and positive outlook for the second half of the year [43][44] Question: Can you discuss the pace of subscription revenue at National Networks? - Management noted that subscriber trajectories, particularly in satellite companies, are a significant factor, with some moderation in pricing during renewals [47][48] Question: What are the economics of SVOD services moving forward? - Management expressed confidence in reaching 5 to 7 million targeted SVOD subscribers by year-end 2024, with favorable churn rates and improving economics [66] Question: How is the company approaching AVOD? - Management is leveraging existing content on platforms like Pluto and Sling, viewing it as an opportunity to monetize their library without needing to own a platform [54][55]