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]

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]

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 Insights - Over half of American subscribers (58%) desire a wider variety of specialist subscriptions in their bundles, beyond major streaming platforms [4][6] - A significant portion of U.S. consumers (68%) are now paying for at least one subscription obtained indirectly through bundled offers [7] - The rise of specialist subscriptions is creating new commercial opportunities for providers willing to collaborate with niche service providers [5][6] Subscription Trends - Nearly a third of American subscribers (31%) currently pay for at least one specialist subscription, including services like horror streaming and meditation apps [1][2] - 1 in 10 Americans subscribe to children's services, while 1 in 20 pay for guided meditation or foreign-language streaming services [2] Consumer Preferences - Consumers are increasingly looking for unique bundles that reflect their personal interests, combining various types of subscriptions [5][8] - Examples of popular subscription combinations include health-and-fitness subscribers also using food delivery services (34%) and students combining language apps with international cuisine services (26%) [8] Market Opportunities - The growing demand for specialist subscriptions is expected to fuel a new wave of bundling, enhancing the bundle economy [6] - Subscription brands report higher customer lifetime value from subscribers acquired through bundles compared to direct sign-ups (72%) [7] Technological Solutions - Bango's Digital Vending Machine® (DVM) facilitates the connection of various subscriptions, enabling providers to offer compelling deals and enhance customer choice [9][10]

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]

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 Viewpoint - AMC Networks Inc. has initiated a cash tender offer to purchase up to $450 million of its outstanding 4.25% Senior Notes due 2029, indicating a strategic move to manage its debt obligations and optimize its capital structure [1][12]. Offer Details - The Offer is set to expire on July 17, 2025, at 5:00 p.m. New York City time, unless extended or terminated earlier by the Company [4]. - The Company plans to fund the Offer using net proceeds from a proposed offering of senior secured notes due 2032, along with cash on hand or other immediately available funds [2][12]. - The total principal amount of the 4.25% Senior Notes due 2029 outstanding is approximately $885.87 million [2]. Consideration Structure - Holders of validly tendered Notes will receive a total consideration of $815 per $1,000 principal amount, which includes an early tender premium of $50 if tendered by July 1, 2025 [2][5]. - Accrued and unpaid interest will also be paid from the last interest payment date to the applicable settlement date [3][6]. Tender Process - Notes can be withdrawn until July 1, 2025, at 5:00 p.m. New York City time, unless extended by the Company [7]. - The Company reserves the right to accept Notes for purchase prior to the expiration date, with an expected early settlement date around July 3, 2025 [8][9]. Conditions and Limitations - The Offer is not conditioned upon a minimum amount of Notes being tendered, but is subject to certain conditions, including the successful raising of $400 million from the senior secured notes offering [12]. - If the total amount of Notes tendered exceeds the maximum tender amount, acceptance may be subject to proration [10]. Company Overview - AMC Networks Inc. operates various streaming services and cable networks, producing acclaimed series and films, and is known for its original franchises like The Walking Dead Universe [15].

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 margin of 19% [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][32] 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 an 8% growth in streaming revenue [21][22] - Advertising revenue in domestic operations decreased by 15% year over year, primarily due to lower linear ratings [26] - International revenue decreased by 7% to $70 million, with subscription revenue down by 12% due to the non-renewal with Movistar in Spain [28] Market Data and Key Metrics Changes - Streaming subscribers remained flat at 10.2 million compared to the prior year, with a slight decline from 10.4 million at the end of 2024 [24][25] - Advertising revenue from streaming is still in the low single digits but provides incremental revenue opportunities [50] Company Strategy and Development Direction - The company focuses on programming, partnerships, and profitability, emphasizing the generation of free cash flow [6][34] - Plans to launch an ad-supported version of Shudder and a new fast channel, Acorn TV Mysteries, to enhance audience engagement and advertising opportunities [10][12] - The company aims to improve its content distribution ecosystem through partnerships with traditional MVPD distributors [39] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the advertising market despite macroeconomic uncertainties, noting strong engagement with advertising partners [26][46] - The company anticipates revenue acceleration from streaming due to pricing actions and content licensing [63] - Management acknowledges challenges in the linear advertising market but believes in the strength of their programming and advanced advertising capabilities [66] Other Important Information - The company ended the quarter with net debt of $1.5 billion and a consolidated net leverage ratio of 2.9 times [30] - The capital allocation philosophy remains focused on supporting the business through compelling programming while maintaining healthy cash flow generation [31] Q&A Session Summary Question: Can you tell us about the streaming subscribers coming in through bundled video packages? - Management expressed satisfaction with the integration with Charter and the anticipated take rates for embedded streaming services [37] 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 [40] 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 [50] Question: When will you lap the subscription revenue issues from the Spanish drop? - Management indicated that the non-renewal with Movistar occurred at the end of 2024, providing a clean comparison for year-over-year analysis [54] Question: What are your expectations for content spend and content amortization this year? - Management stated that cash content spend is expected to be slightly down, but the volume of productions will remain flat year over year [72]

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].