The terms and conditions of the Offer are described in an Offer to Purchase, dated June 17, 2025 (as amended and supplemented by this news release, the "Offer to Purchase"), which was previously distributed to holders of the Notes. As set forth in the Offer to Purchase, the Company reserves the right to (i) waive any and all conditions to the Offer as permitted by law, (ii) extend or terminate the Offer or (iii) otherwise amend the Offer. The following table sets forth certain terms of the Offer and the agg ...

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].

Core Insights - AMC Networks reported a revenue of $555.23 million for the quarter ended March 2025, reflecting a decline of 6.9% year-over-year [1] - The earnings per share (EPS) was $0.52, down from $1.16 in the same quarter last year, indicating a significant drop in profitability [1] - The revenue fell short of the Zacks Consensus Estimate of $573.03 million, resulting in a surprise of -3.11% [1] - The company experienced an EPS surprise of -28.77%, with the consensus EPS estimate being $0.73 [1] Revenue Breakdown - International and Other revenues were reported at $69.95 million, which is a decrease of 7.5% year-over-year and below the average estimate of $72.88 million from three analysts [4] - Domestic Operations revenues amounted to $486.31 million, down 7.2% year-over-year, and also fell short of the three-analyst average estimate of $502.98 million [4] Operating Income - Adjusted Operating Income for International and Other was $9.85 million, compared to the estimated $13.64 million by three analysts [4] - Adjusted Operating Income for Domestic Operations was reported at $123.92 million, slightly below the average estimate of $125.72 million from three analysts [4] Stock Performance - Over the past month, shares of AMC Networks have returned +5.8%, while the Zacks S&P 500 composite has seen a +13.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Consolidated net revenue decreased by 7% year over year to $555 million [21] - Consolidated AOI declined by 30% to $104 million, with a 19% margin [21] - Adjusted EPS was reported at $0.52 [21] - Free cash flow for the quarter was $94 million, on track to achieve approximately $220 million for the full year [20][31] Business Line Data and Key Metrics Changes - Domestic operations revenue decreased by 7% to $486 million, with subscription revenue down by 3% due to a 12% decline in affiliate revenue, partially offset by 8% growth in streaming revenue [21][22] - Advertising revenue in domestic operations decreased by 15% year over year, primarily due to lower linear ratings [25] - International revenue for the first quarter was $70 million, down 7%, with subscription revenue decreasing by 12% due to the non-renewal with Movistar in Spain [27] Market Data and Key Metrics Changes - Streaming subscribers at the end of the quarter were 10.2 million, flat compared to the prior year, with a slight decline from 10.4 million at the end of 2024 [24] - Advertising revenue from streaming is still in the low single digits but provides incremental revenue opportunities [48][49] Company Strategy and Development Direction - The company is focused on programming, partnerships, and profitability, emphasizing the generation of free cash flow [5][32] - Strategic initiatives include launching ad-supported versions of AMC Plus and Shudder, and expanding partnerships with distributors like Charter and Comcast [7][10] - The company aims to enhance its content distribution ecosystem and improve viewer experience through partnerships [36][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction despite macroeconomic uncertainties affecting the advertising market [32] - The company anticipates streaming revenue growth to accelerate as the year progresses, driven by pricing actions and new series debuts [25][31] - Management remains vigilant regarding potential impacts from the advertising market but has not seen meaningful indicators suggesting a material pullback [32][44] Other Important Information - The company has a healthy cash position with net debt of $1.5 billion and a consolidated net leverage ratio of 2.9 times [29] - The company has no bond maturities until 2029 and maintains over $1 billion in total liquidity [29] Q&A Session Summary Question: Can you tell us about the streaming subscribers coming in through bundled video packages? - Management is pleased with the integration with Charter and the anticipated take rates for embedded streaming services [35] Question: Are you seeing any risk of cannibalization on the a la carte side? - Management believes that expanding distribution will create a healthier video ecosystem and additional revenue opportunities [38] Question: How much of your advertising is coming from streaming? - Streaming advertising delivers incremental revenue, and the company is confident in its genre-based services [49] Question: When will you lap the subscription revenue issues from the Spanish drop? - Management anticipates growth in the Spanish market with other partners and is optimistic about future relationships with Movistar [50][51] Question: What do you expect content spend and content amortization to be this year? - Content amortization is expected to be slightly lower year over year, with cash content spend also down slightly [69]

Core Viewpoint - AMC Networks Inc. reported a decline in financial performance for the first quarter of 2025, with significant decreases in net revenues, operating income, and earnings per share, while maintaining a focus on expanding its streaming services and content offerings [2][5][6]. Financial Highlights - Net revenues for Q1 2025 were $555.2 million, down 6.9% from $596.5 million in Q1 2024 [5]. - Operating income decreased by 41.7% to $64.2 million from $110.2 million year-over-year [5]. - Adjusted operating income fell 29.9% to $104.5 million compared to $149.1 million in the previous year [5]. - Diluted earnings per share (EPS) dropped 67.0% to $0.34 from $1.03, while adjusted EPS decreased 55.2% to $0.52 from $1.16 [5]. - Free cash flow was reported at $94.2 million, a decline of 34.7% from $144.1 million in Q1 2024 [5]. Operational Highlights - The company launched ad-supported AMC+ for Charter customers and expanded its FAST channels business [6]. - "Dark Winds" returned for its third season with approximately 2.2 million viewers on premiere night, leading to increased AMC+ subscriber acquisition [6]. - The Anne Rice Immortal Universe continues to gain momentum with new series launches and renewals [6]. - AMC Networks is enhancing its advertising opportunities, particularly in the horror genre, with the upcoming ad-supported launch of Shudder [6]. Segment Results - Domestic operations reported net revenues of $524.2 million, a decrease of 7.2% from $486.3 million in Q1 2024 [7]. - International segment revenues were $75.6 million, down 7.5% from $69.9 million year-over-year [8]. - Subscription revenues in domestic operations decreased by 3% to $313 million, while streaming revenues increased by 8% to $157 million [9]. Changes in Subscriber Reporting - The company updated its definition of "streaming subscribers" to include only those who register on an a la carte basis, resulting in a slight decline in reported subscribers to 10.2 million as of March 31, 2025, compared to 10.4 million at the end of 2024 [9][11]. Stock Repurchase Program - The Board of Directors authorized a stock repurchase program of up to $1.5 billion, with $135 million remaining for repurchase as of March 31, 2025 [18].

Group 1 - AMC Networks (AMCX) is projected to announce quarterly earnings of $0.73 per share, reflecting a decline of 37.1% year over year [1] - Revenues are expected to reach $573.03 million, a decrease of 3.9% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts have reassessed their initial estimates [1][2] Group 2 - Domestic Operations revenues are projected to be $502.98 million, indicating a year-over-year change of -4.1% [4] - Revenues from International and Other operations are expected to reach $72.88 million, reflecting a year-over-year decline of 3.6% [4] - Adjusted Operating Income for Domestic Operations is estimated at $125.72 million, down from $162.32 million a year ago [5] Group 3 - Adjusted Operating Income for International and Other operations is projected to be $13.64 million, slightly up from $13.40 million reported in the same quarter last year [5] - AMC Networks shares have shown returns of +8% over the past month, compared to the S&P 500 composite's +11.3% change [6] - AMC Networks holds a Zacks Rank 4 (Sell), suggesting it may lag behind overall market performance in the near future [6]