Financial Data and Key Metrics Changes - The company reported a second quarter consolidated net revenue decline of 4% year over year to $600 million, with foreign exchange rates providing a 60 basis point tailwind to revenue growth [20][21] - Consolidated AOI decreased by 28% to $109 million, with an 18% margin, and adjusted EPS was $0.69 per share [20][21] - Free cash flow for the second quarter totaled $96 million, leading to an increased full-year free cash flow outlook of approximately $250 million [6][20] Business Line Data and Key Metrics Changes - Domestic operations revenue decreased by 2% to $527 million, with subscription revenue down 1% due to a 12% decline in affiliate revenue, partially offset by a 12% growth in streaming revenue [21] - Streaming subscribers grew by 2% year over year, ending the quarter with 10.4 million subscribers [21] - Content licensing revenue for the quarter was $84 million, reflecting the timing and availability of deliveries [23] Market Data and Key Metrics Changes - International revenues for the second quarter were $76 million, with subscription revenue excluding foreign exchange decreasing by 9% due to a non-renewal with Movistar in Spain [25] - Advertising revenue in domestic operations decreased by 18% year over year due to linear rating declines and lower marketplace pricing [22] Company Strategy and Development Direction - The company continues to focus on programming, partnerships, and profitability, aiming to build and grow fan communities around high-quality content [6][7] - The strategy includes expanding targeted streaming services and leveraging fan engagement to drive viewership and subscriptions [8][10] - The company is adapting its success in FAST channels internationally, with plans to launch additional channels in various markets [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive free cash flow and maintain a strong balance sheet while navigating a challenging media landscape [30][31] - The company anticipates that the third quarter will represent the lowest licensing revenue quarter for the year, with a recovery expected in the fourth quarter [23][29] - Management highlighted the importance of cash tax savings and programming efficiencies in improving free cash flow guidance [36][38] Other Important Information - The company has reduced gross debt by over $400 million this year, including the retirement of $699 million of unsecured senior notes at a significant discount [26][27] - The company is exploring the use of generative AI in marketing and programming development through a partnership with Runway [16][17] Q&A Session Summary Question: Can you elaborate on the source of the free cash flow upside? - Management indicated that the largest factor for the increase in free cash flow guidance is cash tax savings, with modest savings across programming also contributing [36][38] Question: How do you view the trends in advertising and affiliate revenue? - Management noted strong performance in content licensing, with some weakness in advertising, but maintained confidence in affiliate relationships [39][41] Question: Can you provide details on the Runway partnership? - The partnership with Runway is aimed at facilitating creative work, allowing teams to visualize ideas and enhance production efficiency without integrating IP [43][45] Question: What are the expectations for subscription revenue growth? - Management expressed optimism about sustainable subscription revenue growth, particularly in streaming, with recent programming resonating well with audiences [51][52] Question: How is the company thinking about capital allocation and potential splits of assets? - Management emphasized a consistent capital allocation philosophy focused on content investment and debt reduction, while recognizing the value of the company's diverse assets [77][82]

Group 1: Earnings Performance - AMC Networks reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, but down from $1.24 per share a year ago, representing an earnings surprise of +27.78% [1] - The company posted revenues of $600.02 million for the quarter, surpassing the Zacks Consensus Estimate by 2.39%, but down from $625.93 million year-over-year [2] - Over the last four quarters, AMC Networks has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - AMC Networks shares have declined approximately 39.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.8% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $573.64 million, and for the current fiscal year, it is $2.64 on revenues of $2.29 billion [7] Group 3: Industry Context - The Broadcast Radio and Television industry, to which AMC Networks belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact AMC Networks' stock performance [5][6]

Core Insights - AMC Networks reported Q2 fiscal 2025 results with GAAP revenue of $600 million, exceeding analyst expectations of $582.37 million, while adjusted EPS was $0.69, beating projections of $0.61 [1][5] - The company raised its free cash flow outlook for 2025 to approximately $250 million, reflecting successful cost management efforts [1][9] Financial Performance - Adjusted EPS decreased 44.4% to $0.69 compared to $1.24 in Q2 2024 [2][5] - Revenue declined 4.1% year-over-year from $625.9 million in Q2 2024 [2][5] - Adjusted operating income fell 28.4% to $109.4 million compared to $152.8 million in the previous year [2][5] - Streaming revenues increased 12% year-over-year to $169 million, primarily driven by price increases rather than significant subscription growth [2][6] Business Strategy and Focus - AMC Networks focuses on niche and genre audiences through its brands like AMC, Acorn TV, Shudder, and AMC+, emphasizing original content and intellectual property [3][11] - The company aims to grow its streaming platforms, optimize advertising technologies, and maintain financial discipline [4][13] Revenue Streams and Challenges - Traditional revenue streams faced declines, with domestic affiliate revenue down 12% and domestic advertising revenue dropping 18% to $123 million [7] - International segment revenue fell 16%, with adjusted operating income down nearly 50%, attributed to the non-renewal of a Spanish distribution agreement [8][14] Future Outlook - Management did not provide updated guidance for revenue or adjusted operating income but previously targeted $2.3 billion in consolidated revenue [15] - Key areas to monitor include the pace of declines in affiliate and advertising revenue, growth in streaming and content licensing, and sustainability of cash flow improvements [16]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) AMC Networks reported a 4.1% decrease in Q2 2025 net revenues to $600 million, but saw a significant increase in operating income, highlighting accelerated streaming revenue growth, strength in content licensing, and healthy free cash flow - CEO Kristin Dolan emphasized the company's strategy focusing on programming, partnerships, and profitability, leading to accelerated streaming revenue growth and strong free cash flow generation[2](index=2&type=chunk) Q2 2025 Consolidated Financial Results (dollars in thousands, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $600,024 | $625,934 | (4.1)% | | **Operating Income** | $64,469 | $10,788 | n/m | | **Adjusted Operating Income** | $109,386 | $152,807 | (28.4)% | | **Diluted Earnings Per Share** | $0.91 | $(0.66) | n/m | | **Adjusted Earnings Per Share** | $0.69 | $1.24 | (44.4)% | | **Free Cash Flow** | $95,741 | $95,165 | 0.6% | - Operational progress includes **25%+ growth in digital advertising commitments**, launch of **11 new FAST channels**, renewal of NCTC affiliate agreement, and a new partnership with Runway to incorporate AI into development processes[6](index=6&type=chunk) - The company strengthened its balance sheet by reducing gross debt by approximately **$400 million** and capturing **$138 million** of debt discount since March 31, 2025[6](index=6&type=chunk)[13](index=13&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) The company's performance varied by segment, with Domestic Operations seeing a slight revenue decrease offset by streaming and content licensing growth, while International Operations experienced a more significant revenue drop due to prior-year adjustments and non-renewals [Domestic Operations](index=2&type=section&id=Domestic%20Operations) Domestic Operations revenue decreased 2% to $527 million, as a 12% increase in streaming revenue and a 26% rise in content licensing were not enough to offset declines in advertising and affiliate revenue, leading to a 19% fall in Segment Adjusted Operating Income Domestic Operations Q2 Performance (dollars in thousands) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $526,853 | $538,291 | (2.1)% | | **Segment Adjusted Operating Income** | $126,339 | $155,348 | (18.7)% | - Streaming revenues grew **12% to $169 million**, mainly due to price increases, with streaming subscribers increasing **2% year-over-year to 10.4 million**[11](index=11&type=chunk) - Linear business headwinds included an **18% decrease in advertising revenues** due to ratings declines and lower pricing, and a **12% decrease in affiliate revenues** from subscriber declines[11](index=11&type=chunk) - Content licensing revenues increased **26% to $84 million**, boosted by the timing of deliveries, the sale of a music catalog, and fees related to Apple TV+'s "Silo"[11](index=11&type=chunk) [International Operations](index=2&type=section&id=International%20Operations) International revenues fell 16% to $76 million, heavily impacted by a $13.4 million retroactive advertising adjustment in the prior-year quarter and the non-renewal of a distribution agreement in Spain, resulting in a 50% decrease in Segment Adjusted Operating Income International Operations Q2 Performance (dollars in thousands) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $75,535 | $90,095 | (16.2)% | | **Segment Adjusted Operating Income** | $14,737 | $29,265 | (49.6)% | - Prior period advertising revenues included a one-time **$13.4 million retroactive adjustment**, and excluding this and currency impacts, International revenues decreased **6%**[12](index=12&type=chunk) - Subscription revenues decreased **5% to $47 million**, primarily due to the non-renewal of a distribution agreement in Spain during Q4 2024[12](index=12&type=chunk) [Capital Management and Shareholder Returns](index=3&type=section&id=Capital%20Management%20and%20Shareholder%20Returns) The company actively managed its capital structure in Q2 and July 2025 by issuing new Senior Secured Notes, tendering and repurchasing existing notes at a discount, and making a debt prepayment, which collectively reduced gross debt by approximately $400 million, while also repurchasing 1.6 million shares - Completed a series of financing transactions that extended debt maturity, reduced gross debt by approximately **$400 million**, and captured approximately **$138 million** in debt discount since March 31, 2025[13](index=13&type=chunk) - Key transactions include issuing **$400 million** of 10.50% Senior Secured Notes due 2032, tendering **$600 million** of 4.25% Senior Notes due 2029 at a **$111 million discount**, and repurchasing **$99 million** of the same notes at a **$27 million discount**[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - Repurchased **1.6 million shares** of Class A Common Stock at an average price of **$6.48 per share** in Q2, with **$125 million** remaining authorized for future repurchases[18](index=18&type=chunk) [Outlook](index=1&type=section&id=Outlook) AMC Networks has raised its full-year 2025 guidance for free cash flow, reflecting confidence in its operational execution and financial management - The company increased its free cash flow outlook for the full year 2025 and now expects approximately **$250 million**[2](index=2&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) The consolidated financial statements detail the company's performance, showing a significant turnaround to a net income of $50.3 million for Q2 2025, driven by lower impairment charges and a gain on debt extinguishment, alongside a strong balance sheet and cash flow from operations - Q2 2025 Net Income attributable to stockholders was **$50.3 million**, compared to a Net Loss of **$29.2 million** in Q2 2024, largely due to the absence of a **$96.8 million impairment charge** and a **$25.7 million gain on extinguishment of debt**[30](index=30&type=chunk) - For the six months ended June 30, 2025, net cash provided by operating activities was **$211.6 million**, a decrease from **$255.3 million** in the prior year period, primarily due to changes in program rights and obligations[31](index=31&type=chunk) - As of June 30, 2025, the company held **$866.4 million in cash and cash equivalents** and had total debt (net) of **$2.13 billion**[33](index=33&type=chunk) [Supplemental Information & Non-GAAP Reconciliations](index=4&type=section&id=Supplemental%20Information%20%26%20Non-GAAP%20Reconciliations) This section provides definitions for non-GAAP measures and detailed reconciliations to GAAP equivalents, along with the company's capitalization as of June 30, 2025, and a pro forma view adjusted for July 2025 financing activities, showing a reduced leverage ratio - The company defines and uses non-GAAP measures such as Adjusted Operating Income (AOI), Free Cash Flow (FCF), and Adjusted EPS to evaluate business performance[20](index=20&type=chunk)[21](index=21&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) Pro Forma Capitalization and Leverage (As Adjusted June 30, 2025, in thousands) | Metric | June 30, 2025 | As Adjusted | Change | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $866,407 | $699,690 | $(166,717) | | **Total Debt** | $2,233,991 | $1,963,991 | $(270,000) | | **Net debt** | $1,367,584 | $1,264,301 | $(103,283) | | **Leverage ratio** | 2.9x | 2.7x | (0.2x) | Reconciliation of Operating Income to Adjusted Operating Income (Q2, in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Operating income (GAAP)** | $64,469 | $10,788 | | Share-based compensation | $8,043 | $8,457 | | Depreciation and amortization | $26,446 | $26,493 | | Restructuring charges | $3,529 | $2,931 | | Impairment and other charges | — | $96,819 | | Other adjustments | $6,899 | $7,319 | | **Adjusted operating income (Non-GAAP)** | $109,386 | $152,807 | Reconciliation of Diluted EPS to Adjusted EPS (Q2 2025, per share) | Metric | Amount | | :--- | :--- | | **Reported Diluted EPS (GAAP)** | $0.91 | | Amortization of intangibles | $0.10 | | Restructuring charges | $0.03 | | Gain on extinguishment of debt | $(0.35) | | **Adjusted EPS (Non-GAAP)** | $0.69 |

Core Viewpoint - AMC Networks Inc. reported a decline in net revenues for the second quarter of 2025, but highlighted growth in streaming revenue and a strong free cash flow outlook for the year [2][5][6]. Financial Highlights - Net Revenues for Q2 2025 were $600.0 million, a decrease of 4.1% from $625.9 million in Q2 2024 [5]. - Operating Income increased significantly to $64.5 million from $10.8 million year-over-year [5]. - Adjusted Operating Income fell by 28.4% to $109.4 million compared to $152.8 million in the previous year [5]. - Diluted Earnings Per Share (EPS) improved to $0.91 from a loss of $0.66 in Q2 2024 [5]. - Adjusted EPS decreased by 44.4% to $0.69 from $1.24 in the same quarter last year [5]. Operational Highlights - Streaming revenues grew by 12% to $169 million, driven by price increases and a 2% increase in streaming subscribers to 10.4 million [12]. - Content licensing revenues surged by 26% to $84 million, attributed to timing and availability of deliveries [12]. - Advertising revenues decreased by 18% to $123 million, primarily due to declines in linear ratings and lower pricing [12]. Segment Results - Domestic Operations reported net revenues of $526.9 million, down 2.1% from the previous year [8]. - International revenues decreased by 16.2% to $75.5 million, impacted by the non-renewal of a distribution agreement in Spain [10][13]. Cash Flow and Financing - Free Cash Flow for Q2 2025 was $95.7 million, a slight increase from $95.2 million in Q2 2024 [52]. - The company strengthened its balance sheet by reducing gross debt by approximately $400 million and capturing $138 million in debt discount since March 31, 2025 [6][15]. Recent Developments - AMC Networks launched 11 FAST channels on TCLtv+ and renewed long-term affiliate agreements, indicating a focus on expanding its digital footprint [6]. - The company announced a partnership with Runway to integrate AI tools into its marketing and programming processes [6].

Core Points - AMC Networks Inc. will host a conference call to discuss its second quarter 2025 results on August 8, 2025, at 8:30 a.m. Eastern Time [1] - A press release with the results will be issued before the market opens on the same day [1] - The conference call will be available via live webcast on the company's investor relations website [1] Company Overview - AMC Networks is a prominent player in the television and film industry, known for creating and curating celebrated series and films [3] - The company operates various streaming services, including AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, as well as cable networks like AMC, BBC AMERICA, IFC, SundanceTV, and We TV [3] - AMC Networks also has an in-house studio, AMC Studios, which produces original franchises such as The Walking Dead Universe and the Anne Rice Immortal Universe [3]

Core Viewpoint - AMC Networks Inc. has announced the early results of its cash tender offer to purchase outstanding 4.25% Senior Notes due 2029, increasing the maximum aggregate principal amount from $450 million to $600 million [1][5][10] Group 1: Offer Details - The Offer to Purchase was dated June 17, 2025, and the Company reserves the right to amend, extend, or terminate the Offer [2] - As of the Early Tender Date, the aggregate principal amount of Notes validly tendered was $614,437,000, with a proration factor of 97.7% [3][5] - The Total Consideration for the Notes is $815 per $1,000 principal amount, which includes an Early Tender Premium of $50 [6] Group 2: Tender Process - The Withdrawal Deadline for the tendered Notes expired on July 1, 2025, at 5:00 p.m. New York City time, meaning tendered Notes cannot be withdrawn [7] - The Offer is scheduled to expire on July 17, 2025, but the Company does not expect to accept any Notes tendered after the Early Tender Date due to the exceeded Maximum Tender Amount [8] Group 3: Financial Context - The Offer is conditioned upon the Company raising net proceeds of $400 million from a concurrent offering of senior secured notes due 2032 [10] - AMC Networks operates various streaming services and cable networks, indicating a diversified portfolio that supports its financial activities [13]

Group 1 - AMC Networks (AMCX) is currently trading at all-time lows due to a heavy debt-load and challenges from cord-cutting trends in their legacy business segment [1] - The company has been highlighted in investment discussions, with notable buy recommendations made in September and November 2023, indicating potential interest from investors despite current challenges [1] - The article mentions a specific acquisition of another company (ADTH) at $3.21 per share in June 2024, suggesting a trend of consolidation in the media and entertainment sector [1] Group 2 - The article emphasizes the importance of conducting personal research before making investment decisions, reflecting a broader industry trend towards self-directed investing [2] - It notes that past performance is not indicative of future results, which is a common disclaimer in the investment community, highlighting the inherent uncertainties in the market [3]

Core Viewpoint - AMC Networks Inc. has priced an offering of $400 million in senior secured notes with a 10.50% interest rate due in 2032, which will be guaranteed by its domestic subsidiaries [1][2]. Group 1: Offering Details - The offering consists of $400 million aggregate principal amount of 10.50% senior secured notes due 2032 [1]. - The notes will be unconditionally guaranteed by AMC Networks' existing and future domestic subsidiaries on a senior secured basis [1]. Group 2: Use of Proceeds - The net proceeds from the notes offering will be used to fund a tender offer to purchase up to $450 million of outstanding 4.25% Senior Notes due 2029 [2]. - Additional uses of the proceeds include paying related premiums, fees, and expenses associated with the offering and the tender offer, as well as repurchasing or repaying other corporate indebtedness [2]. Group 3: Regulatory Information - The notes are being offered under an exemption from the Securities Act of 1933 and will not be registered under the Securities Act or any state securities laws [3]. - The initial purchasers will offer the notes only to qualified institutional buyers or outside the U.S. under specific regulations [3].

Core Viewpoint - AMC Networks Inc. plans to offer $400 million in senior secured notes due 2032 to fund a tender offer and manage corporate debt [1][2]. Group 1: Offering Details - The company intends to offer $400 million aggregate principal amount of senior secured notes in a private offering [1]. - The notes will be guaranteed by existing and future domestic subsidiaries of AMC Networks on a senior secured basis [1]. - The offering is subject to market conditions and will be made under an exemption from the Securities Act of 1933 [3]. Group 2: Use of Proceeds - Net proceeds from the notes offering will be used to fund a tender offer to purchase up to $450 million of outstanding 4.25% Senior Notes due 2029 [2]. - Proceeds will also cover related premiums, fees, and expenses associated with the offering and the tender offer [2]. - Additional funds will be allocated to repurchase or repay other corporate indebtedness [2]. Group 3: Company Overview - AMC Networks is a prominent player in the TV and film industry, offering a variety of streaming services and cable networks [5]. - The company operates several brands, including AMC+, Acorn TV, Shudder, and Sundance Now, among others [5]. - AMC Networks also has an in-house studio and production operation, known for original franchises like The Walking Dead Universe [5].