AMCX - Earnings call transcript Q2 2018

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Operator

Good morning. My name is Tom, and I will be your conference operator today. At this time, I would like to welcome everyone to the AMC Second Quarter 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank call Mr. the now over turn to I'll Seth Vice President Relations. of Investor Zaslow, Senior

your may conference. You begin

Seth Zaslow

Good and you. XXXX Thank morning earnings second AMC conference quarter Networks call. welcome to the

team: Officer; Ed Chief morning of are Financial Joining Sullivan, and Carroll, President Officer. us Executive our Operating this executive Chief and Josh Sean members Chief Officer; Sapan,

Following will for call open of questions. company's quarter second the discussion the a XXXX we results,

we financial believe presentation with your evaluation information. non-GAAP performance. the discuss call. Exchange cause constitute filings forward-looking today's call earnings of website If uncertainties. actual performance that also or results are may company's company's to the ongoing risks Litigation release, Investors that is may you cautioned copy you disclaims Securities statements don't will our concerning useful, results for our This that discussion risks is have The could contain available results, note We following. any provides the information appropriate and via the in at Securities Private future accessed this involve statements Commission within of and guarantees meaning update the of amcnetworks.com. the take company supplemental and of statements during such company's uncertainties Act can any not with a be on XXXX. of Further, to be forward-looking statements that Please differ. obligation a and Today's it Please refer the to of non-GAAP Reform discussed operations of and of website. the discussion forward-looking the the are

like information for this to of which GAAP refer to non-GAAP a that, now press release to on For further details, reconciliation turn refer the please over and and Josh. With call would to related we'll I information, footnotes call. the GAAP to

Joshua W. Sapan

all us. for and Great. you joining Good morning thank

days recent a one we Before on from two wanted our information few to ago. started, some of transactions, I get just provide

their Our a several and Entertainment our controlling and the businesses, as excellent Both TV, presence bringing Entertainment XX% in in consistent place planned African-American with our are audiences. the longer direct-to-consumer acquisition both behind position for of from goals, content you greater and interest growing and think of Entertainment, Levity including nearly called now some a for urban stronger in company known have Networks SVOD SVOD strategically a over AMC first manufacturing company content know, having UMC, company and larger the of ownership. by term. Britain We RLJ called RLJ transactions are offerings is increased is nicely subscribers from services best year which ago. Acorn the beyond, service and and our

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business long-term. capital and position key deliver free to to on continue We the strong the for objectives including income, flow using revenue growing financial and our generating operating adjusted our cash

offering rate; each our we content; to we of starting which and the bit are: wholesale these take on great like through a you with for at priorities distribution a future. first, very do. about content little diversifying priorities core second, creating strategic During third, at of key what the our strong the content focus I'd by a quarter, businesses on three execute increasing continue attractive which is to our

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Beyond BBC on our particularly seeing tv WE America strength, and IFC. originals AMC, for we ratings and are

the recognized that stand Portlandia and Our continues and Hank women the of dominate excellence. IFC one Brockmire. African-American and to the content greatest among for the our creative in reality-focused the cable stories network part nominations number These Emmy synonymous Thursday of they tv makes two talent nights recently Azaria telling critical attract demos, brand was what acclaim as WE to contribute in with and of out. season series, key entertainment of final our behind for us record to continue quality successes They camera, with and front long track to are established enable and

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to the our financial for like results. Sean detail call Sullivan more I'd turn on Now, over to

Sean S. Sullivan

results total million, revenues pleased second EPS a our company with million, in $XXX was as were the We're quarter Thanks and AOI and good adjusted $XXX morning. was $X.XX.

Entertainment highlighted live, television. for company and multiple distribution media management the acquired Levity comedy content a an owns company quarter, controlling digital, Josh on during the original including and a linear As in and business integrated operates produces interest platforms Group, that venues, talent

growth of or XXXX. earnings million levels the $XX $XXX $X very million Levity for disclosed our in on AOI. percentage free quarter. generate Networks and also point or contributed continues of X $XXX over healthy X the contributed AMC Levity As flow, to points months the million to million to release, six in ended growth quarter revenue cash of June

performance was a moving segments, X% with the of growth prior increased of compared to $XXX operating revenue, Top million. range. by the end million, our In AOI growth accelerated to million. to to to which the year So, quarter, the the compared growth. QX rate of National high continue the of the line period. Subscription increased was revenues QX distribution to as $XXX in stable us the $XXX as driven revenues increase X% Networks' digit X% and quarter reliable source provide of to mid-single an

previously results the discussed of timing quarter, various agreements, and adjustments. fluctuate we've As renewals in a particular based on

Looking continue be ahead, to full for mid-single the in growth digits. subscription we the to year revenue expect

of be absence growth As the period. scripted in content more a line and than of timing the the of of licensing year-over-year for line Preacher, by this significant AMC original Dietland TURN the Studios the The prior was revenues revenue, quarter, from from and slower was component our distribution licensing in the Terror The second top availability various The driven of quarter growth than continues programs year and slightly windows. In we offset growth. which due to anticipated to the contributor item to Son the

notably Fear at most We Dead our Walking total for AMC. $XXX improvement due X% of the The Walking and a to advertising in million. the a sequential second increased Moving the to of strong advertising, revenues timing originals, to Dead quarter, experienced advertising

WE and growth as and Sundance, pricing, offset of which helped tv, at Doctor strong at to lower at IFC AMC digital BBC delivery all also absence as Call well in our increased in the of We growth Better Saul platforms, saw America. Who

Call Monday in AMC this and BBC the on returns to mentioned, Doctor Josh Better As Saul America fall. Who returns

the Moving X% to and $X programming to $XXX quarter, our $XX the In in write-off Technical to expenses, period. assets million. original which networks. we variance or increased prior continued expenses the in programming total an year all versus X% million to second million a of cost. in across increase in of the is SG&A The the related quarter, of versus increased the year expenses operating the compares second investment our to variance recorded Saul by various related expenses to notably related charges most The offset $X in prior decrease increase X% of to principally Call million quarter $XXX of is an XXXX. of million due G&A timing write-offs period. marketing in were costs Better primarily originals,

prior $X as Levity, essentially in absence subscription as $XX of as adjusted which sold our versus Adjusted Levity, of in acquisition the international AOI in revenue and increase offset At reflected increased segment, on the a reflected absence XXXX. International of quarter million, our primarily increase to basis, million. The at and million operating by to Levity. $X well July the Films million was income foreign well These was and revenues was International of operating Moving months to and second XX% Other translation from income our The of $XXX increase include as an favorable million $X two DMC. increases the million. of Other for X% Levity, in results year. currency revenue Adjusting $X was the DMC, $XXX impact million, streaming of networks, primarily to the the IFC activity reported to services. grew impact related reported related

prior-year basis, unfavorable as charge $X.XX impairment basis tax $X.XX our principally for income by second program, EPS reduction in GAAP was On quarter absence miscellaneous to quarter, expense to a the outstanding second reflected of decrease net. also compared partially was year. in the XXXX. EPS on Moving an stock and of an variance an the EPS a of period. prior shares adjusted in GAAP in taken year-over-year EPS reflected compared in a the repurchase offset The in the to $X.XX $X.XX increase a result

flow, generated quarter. free had June the XXXX. for of terms million In cash strong a months the company We $XXX three ended

million period capital right $XX use resulting were of was six and million, tax months, cash six-month million. $X the were program cash for free of the million, non-controlling payments and programming months, in Through million, a interest million, six $XX of the in were expenditures were for cash. cash for This Program we $XXX $XXX million. amortization period. For a million, $XX prior-year $X $XX to was rights million $XXX distributions interest generated payments use compares to of

and Turning of to as capital had the AMC Networks sheet, net of billion. $X.X leases XX, balance debt June

based on times. $XXX Our leverage was ratio LTM million of AOI three

remains increase in of to us believe our to use $X.X disciplined share for our investment be program terms With a our and both continue an grow business directors the In the basis. June, in core capital billion. to of this in allow AOI repurchases, continue announced to as allocation, repurchase focus we authorized and nonorganic to to sustainable board will primary on repurchases investments. share We'll respect the capital of that opportunistic company

the During million the of shares. million This represents approximately stock. quarter, $XXX repurchased company X second

Program our available company to-date, we've its XX% of existing authorization repurchased $XXX of the had outstanding As program. last million approximately under Friday, shares.

repurchase depend several and We potential including variables stock continue our other any our the of quarter price activity in expect that will of to one of on view capital. level uses

to continue vary from to expect we quarter. repurchases to result, of our the quarter a pace As

beginning So, achieve looking confident at with the the in targets full results our pleased year. we're to year we ahead, of that and year-to-date remain our ability communicated

total growth. full revenue full to year expect the for year contributing the deliver low-single growth of low follows. digits, Levity range in We with mid-single the respect of prior AOI, to total of company year transaction, our revising continue up to from expect that we point X be digit With full single-digit approximately to growth. company Given growth our we're impact Levity as outlook the now percentage

continued specific cadence anticipate terms or as timing of the quarter, Networks, and anticipate the National the a in the similar of of at third both we With what for being airing our consequence our content investments growth. and the quarter performance fairly in of to AOI we to our shows. revenue respect As the saw in variability second performance, we

growth We be of in to expect content Networks' percentage this distribution subscription even we a growth and anticipate advertising mix fairly continued terms year-over-year for to licensing will healthy the due in sequential originals. revenue, the respect growth revenue. of National With We both anticipate timing and modest decline revenue. airing of our

we As second to International for third At similar National both quarter second the AOI. in of rate revenue to Levity expenses we the saw the a in what quarter, at terms Networks, growing saw impact to and expect at we and we similar anticipate be our segment, in in the what quarter. the and of Other

as year, excluding Excluding at and grow generally expect of organic in in we first the essentially of the to expect rate terms to prior the Levity, half AOI, growth rate in to that we experienced period dollars. a line revenue flat Levity, is absolute we compared the of year with be

very good ahead about business us. and for how of growth various positioned feel is overall, So the we that are about we're the opportunities excited good,

move to Operator, like open of So you to questions. call to with if the the that, could portion question-and-answer we'd please call. the

Operator

you. Thank

Vasily of comes the of question first line Cannonball Research. from Your Karasyov

is Your line open.

Vasily Karasyov

everyone. morning, Good

A, you year, referred the and this is Josh also, made peers I several the you. to I Ed. I announcements those what and Ed, went tell some also Thank and think past – you're going? over us how XXX% working months. is you is, completely can upfront you several please scatter doing don't for how doing. think my the data-driven think you Can out is that same for vision? us what your And Because initiatives of advertising how are question please tell the your

Edward A. Carroll

Great.

cable or top XX I'd highest-rated And think fast Planet on like to recent quality we among Earth to next generally, that. to drama because TV. we that our of volume basic was down to digit series, across it. networks, series say, was memory, there was think big contributed money healthy get of I eagerness increases. leaders content an pricing of the have we to a the healthy saw any But shows of among that high-single course, AMC on as and X advertisers we and contributing factor on and upfront, the it Eve BBCA all Killing demand their inside So, high with and like in That its contributors

So, targeting, we be successful with felt in the campaigns for it's And company positively. soft continues to noting of about ran good to question the worth to upfront, probably upfront, latter number a up scatter your we us. to leading the including were results drink the we company, area sponsors' of users advanced impact able one audience pharmaceutical one a and campaign with likely and a access and strong

the theatrical service movie to major with able So deals. We quick restaurant a auto a set others. among with that company with upfront, were did similar we in this up and

highest finding advertisers. us our volume So among is we're for that platform data particularly CPM in effective increasing our proprietary advanced

have. mentioned You the other we that announcements

Sorenson. to our addition an In doing company interesting a with test called platform, own we're

announced We customized week. number last of with now us deliver is We're that and regardless You whether gives advertisers, it satellite a ability this. in coming to target and like the We the may that about TVs of smart do can the product via heard telco. signal it. or It testing cable have or messages. we

good we our own are proprietary evolve feel platforms. upfront, the to So and analytics continuing generally, we about

Vasily Karasyov

far? scatter digits is up so high-single the much. very you And Thank pricing

Edward A. Carroll

such quick be in Scatter pricing movies categories particularly service strong and continues restaurants. to as

Vasily Karasyov

so much. you Thank

Operator

Jefferies. Your next question John comes of from the line of Janedis

Your is line open.

John Janedis

you are of a lot your handful your more mix, about could hoping was of peers brands. a I talk programming morning. key investment Good you. Thank meaning in strategy focusing

some AMC. You've success the about of away talked rating from

different And looking thinking you concentration? your out investment be we of hours a be be do portfolio look will do originals about? few number incremental revenue years, of forward, in there So or you – able terms think your should of is think going how or will stable

Joshua W. Sapan

not I'm I'd patting couple is this guess Josh. on John, Sure. of ourselves back. say the a hope I I things.

I quite viewers shows think and that know. five of well-resourced that have well-funded, we that with fans, well-supported, the those constituents channels are well-established, brands

had We time going content you're tended greater of to years, felt As we about that times, we well to that the focus aware, do not to and past number over several it occurring. industry at whether supported at with meaning migrate a channels, original content our we not overspending on is on on the this were world to to it to we too path peers that be going XX, was there the in XX. of and that brands imperative. media them was has which be We questioned we going that, chose XX, chose brand to the have not were – strength choices them. have information to was much are who What option; in we and are an – I going is thought be to hope an strength were being people – was a not

and right brand was for think to programming. we So, strong expand went strength We or channels. the didn't XX it move. We XX

it be we essentially economics, to we remarks, owners. rather Now, than manufacturing, economic reordered internal our to system chose to those content organized renters and you support in prepared our in and heard be order and of

of that a supporting invested paths as in increased and those shows in multiple own. So – in so way brands, order for we had limited we monetizing and investment of monetization that

windows. the subsequent those we reflected shows our as in all-platform today that's we to what around into now financials globe Now, call sell

are five point go And up if that that have. well we're is I forward, of – in virtual channels. would think independent these And in set which this any widely for are emerging our I evidence that than on channels just distribution all of more we we you test not. we I'll the acid the are or with As of we you MVPDs, programmer piece that to a sort carried is of landscape other may, pretty

it's So test be the that they're expenditure and of it acid price the consumers grow they smart, they good want a to attractive money at supported, have we subs. their the is well to stuff going to it's it's know, because

just plot. to we your answer go we So the right forward, we have fully think largely as question,

significant call make We're business call I'll yet – subscription the scale. future. can't Of but and very an developing, headways think I video-on-demand be the that in into adjacent scale, foresee wouldn't would toward made we've course, it's smart moving comment it I now we it We that. meaningful to

right that the largely the we that is this but world aware through to may adjust and and first we that's need adapt we're the thing think ever plan. Entertainment announcement so and we we And changes have it puzzle, some of today RLJ announced M&A,

John Janedis

With Josh, going topic. a you a to RLJ, your you're DTC for have brands. related Thank to that. of lot point, maybe on

what extent to think in form can wallet. the talk brands churn I'm may be So, less the share an you trying viewer? scale benefits they maybe how increasing do where just environment an understand any given in about amount complementary of and to niche be to about of better platforms and seems have And you the targeted engagements of taking mind

Joshua W. Sapan

issue on the services what a niche the or a a it at churn. probably you DTC one party generalization. really is hope landscape X%. because dramatically you That's if unlike higher I most and direct higher. differs would and way, call It's which generalize, churn average, DTC And general the Amazon in the dramatically truly DTC if looked central a or churn scale is it for you they're but if services, on much general sold were an to by central at ones. general hit the the interest rich in the question. consumer, you sees to The Yeah. they're answer cable both, for too services And third where on business gross to in big don't length issue I at like

people these bit operating, we've on data been we've I subscriber increasingly course. five that we've and It's are and best science, of the customer stacks our both for and, now channels organized life. of tech years, hiring relationships had who managing average So at hope, analytics a adept

sounds a arenas So less like people churn almost that whole to move of – tend If words, that than lot demographically are and lot is a people content in often different, older thumb. with what flip of them out means the who that young a have a churn and it sensitive. inherent in

own all our as and wisdom So an these we've Xfinity, operate with obviously all increased and collect partners, activity, Entertainment I that capability about capacity, hope we the and got that BBC, with and and wisdom that, ITV, we're it. RLJ it Premiere our entrants multiple managing Comcast AMC

product, we stack, we the as on on on will forward, go we'll corrections tech course engagement and So importantly most undertake life and on subscriber – make and content.

will our we in those and the and also do responsibly to probably set have of and answer variables except you we right tentacles right we that unsatisfying think the have aggressively within the place, we managed, be have framework. to investment right pieces I this given So, think economic financial all say

John Janedis

a Great. Thanks lot.

Operator

next of Canada. line Steven question comes Cahall Royal Your of of Bank from the

Your line is open.

Steven Cahall

Thank you.

maybe first two questions, clarification. a just Just

think yourselves there imply ourselves, in some got we meant guidance event Lincoln's that to (XX:XX)? knowing wondering growth, you've with about means what guidance from coming low-single a we from we're by just the when just a what digit planning might then Comic-Con. adjusted think the come put that about you that's think kind like left And you've at point. now that clarify probably just going point OI or to this was of fill-in place, including to Levity down was Andrew confirmed of taken kind you second, point that I (XX:XX) some this point So, with Can if an at extra of (XX:XX). room to was departure and I

so, meaningful that about should here the fairly shift it think of Thank a future franchise you. from as talent we a And how perspective? makes

Edward A. Carroll

turn your if question talent don't Ed. Steven. mind. you Sean, It's over then it and Hey, to answer I'll

hundreds everyone fans a Walking catch where Dead to shows to Diego be at see thousands of which festival yes, series. Andrew up in dimensionalized, is Lincoln and be huge to their Comic-Con, attend So, that would The leaving of movies favorite character San his said

relationship not and media rounds over, how. on social which or did with did that say from added has Rick he rounds say far he And Sheriff why certainly Grimes is his Now, of intrigue. fan

that building season for Walking is So anticipation The we Dead. the continue to and will next build believe of

also we're for of and obvious great plenty who we there's great here show Gimple, Angela with runners happen storytelling reasons. be We believe in and runway the hands Scott for Kang think to

special I'm think not we going Dead. that, So will be than to season of specific but a be The more Walking it

Sean S. Sullivan

to of question, the your was XXXX. original AOI and And, the the Steve, guidance to impact parameters just Levity as the reaffirm intention give to you some for

Steven Cahall

you. Thank

Operator

question Nathanson next from comes the of line of Your MoffettNathanson. Michael

Your open. is line

Michael Brian Nathanson

M&A two one on strategy. I for Josh, on Thanks. then have one and you,

having asset to fair And looking your M&A, you interest that it you're and in a little years of light talk U.S.-based the deal about fewer ago? you do late, that thought, several did So acquisition strategy channels that, what in of have to what you you up in bit adding (XX:XX) chiller can saying that hindsight? you in at assume and us to would is guys then channels? lived about more Has again

Joshua W. Sapan

Michael. Thanks, Sure. Yeah.

areas been that So, I we've are. of may, priorities In and probably deals as where we prepared been guiding been as deployed in think done, content-focused getting remarks us, much our our in has direct-to-consumer it's both enterprises. and deeply the never. It's as been we've and all wouldn't, That's the strategy say penetrated I probably in see mentioned, I with our But it's you that's if never in resources true, domestically what content unwise. sort (XX:XX) we've and and distribution.

if So our what that's That's focus an is. answer to your first I may. question,

didn't then, set back was for critical $X global, was become to as of side, Back for studio. identified billion it Back have things not run we have few that Chiller to a strategy we up $X today, One and asset. to a the had rate U.S.-based. our pleased future, revenue to below the what had, future a closer then, the little back we in when or On we we're a When plot very then, billion. achieve. we our

Terror, we Walking When that's almost companies to to piece comparison M&A roll with recent is second larger and was to season, worldwide AMC. have the piece Dead of meaningful, so quite to global of International distribution smaller if sort get you've renters. worldwide a brilliant third another is channels. advantage quite so and ubiquitous, exactly on That in overseas content and functional, invest that our to that. footprint. and those much have going that anthology Channels if take into makes to with the but and lived so so eye anthologies, of Dead, larger in The brilliant new go is can of show into so and is across the effective when not it's the a converted being when get Walking not Terror believe, to to almost content definitely in I for desk we video-on-demand and deeper channel underlying the do central owned it's horror we and comes going and We content, was not U.S. subscription don't we a we're international I direct-to-consumer. expectations. media rattle It seen shake, a and company was big The called rights a for us the world for we across sanely the what Economically, Fear make our not to ability today, for it that it show an It today. it, even us. for That's appears know more creating for show, that a first get our call brilliant The essential certain we it come premiere and responsibly, you clear back a And up toward Fear smartly, of MGM

it cable one part in distribution. and would world we're new areas, where U.S. pattern. areas, and of different up key and every TV a late; country was In of launches pay do free-to-air from again, it's the some mentioned, The point of yes, pay overall it in areas, of and XX% view. wireless are occurring. expanding other I early is So, television the just is we in like absolutely was sort consumption; emerging. XX% there's not It's some sucks a

African with pay and East, obviously emerging the focused TV launches we're in content. Latin in areas in America So, on the the where Middle is

footprint take of it. lot as a we have upside continue we think we expand and So, to that

Michael Brian Nathanson

I look I versus at us niche about how success, answer can And personalization. Thank one But to all any question enough you Netflix of for you gotten When to is John churn is, Josh, just down and that's for your – broad. following think churn and things it's their of about that. by content now they've having they you say going for have about ask month. great. you single a the

rethink strategy choice all any how So, success us one to do products is way massive keep So, you enough some give think into the creating about versus at content there any point our it that? of personalize down? Netflix's churn at DTC would service month to you and putting that looking separate

Joshua W. Sapan

short is which done Yeah. that Look, and question point brilliant and it's of no Netflix customization arrives a created done at enviable a brilliant been great and the they've are and your you they've very personalization which has home – question. There out has wonderful it. what scale and there the job. Nothing strong is

someone sort so the of arguably different certain for separate have household, constituencies. people has Netflix for one where there's name appeal and in in it's It's or a mere effect have own where is and thing it. And more horror. targeted who's It absolute brand. creation We gone and and a passionate not collection resonance different support it brand taken there's its path things of much shows atomized individual about segregated the more for in

we're they're do and And they're where collect in they're New not filmmakers master. next going have We that these and intelligent. do Upstate talk have actually all get we offsite about are York podcasts rabid, frankly – only podcasts, other and Shudder each with to fans we horror they – have – and horror come with those you wildly we the seminars

different moves take things subscribers and have strong mentioned, and to question we We growing the have with ourselves and have the with sure the the across footprint ask products, have I'm the the not very we different relationship time, to I over as answer. MVPDs now What and do of programming frankly, what's subscribers. services the our could different position considerations working time tech we do, cherish. now we smarter D-to-C choose have our is a with of to and stacks, many incumbent we're who have, So, to managing lifecycle into those we we we and that we over the and related given all

So account. we'll all take that into

Michael Brian Nathanson

Thanks, Josh.

Operator

next comes of Guggenheim Partners. Your Morris of line Michael question from the

Your line is open.

Michael Morris

you. Thank morning. Two topics. Good

maybe does of have First, in what have you those the When when outlook? and lines, dozen secondly, greatest growing for can kind Sean, just expand multiyear Is bit the you can clearly episodes? just you maybe Call slate, mix it of you'll over on of we And on is coming, for the you for from is – Thanks. runners Saul strength right show just the commitments potential to a and expand gating comments driving look along at look material? that your there, a little number else the that expansion the at what next greater timing agreements. that impact AMC last then And the outlook Studios to some ad to quarter, which series factor now? on ability year, we've about source And quarter, give the of your seen think a number strategy platforms Better or we programming? your beyond we

Joshua W. Sapan

Yeah. Michael. Hey,

one may, second. So, I answer, answer questions; the I Josh, of your if I'll to may Ed ask

Gilligan regard – runners. that to The relationships the about many asked lasting, It with commitments Breaking believe are who Call ones Better I'd create you pursue the development Just utmost Those we through long we that many, Vince way and we creative to Saul. on name. with Peter Gould the question – others. and that for people of began with to Bad are like them is work are creative easy with, show and

as work core the with AMC find creatively Networks precious truly having does supportive. what relationship treated only resonate and also is their of as that be home concerned who the commercially do are they work we So about a that and a them, treated deeply not but we is think and is in of which to will these people is sensible,

think accomplished we which creative we we've evidence and So, we've we in relationships in manner ongoing it's accomplished and in have the with think people. that, it

really working with new voices. cherish We also

is fake, it understand a season Draper. think that that enough reputation we're they where check, It's has check. property the so what earnings actually an our a the of or had we've well but television not about who It seek show about don't show. I that We've a individual and are averages when frankly, you're a through own calls process. asked talking bringing – a to characters we piece I idea in TV highest TV taking interesting. just and to to I'd successful sense, And it. deeply. Andy of among part beneficiaries mentioned I smaller it in relevant the that it's of to AMC character been cultural-consuming successful asked all do enough actually than of development I'd of relevant about been or attention not have had the anecdote discover TV a And think We've of them a as were we've I some been speak. extraordinary like or an where There story character and Walter his about from because public. think conversation, so – reverberating was the it's we we've people people limited White. was you probably I success batting developed known, Don significant a And cultural asked that show, and that something been I was an some, turning – that in on in fate – comes into there And into a many asked respect only like think not the is to was but the wonder a that a Lincoln. earlier but actually previously struck. a question scale are not And intellectual shows and

Seth Zaslow

it's Michael, Seth.

we Dietland, is our number programming Sean And we're season actually what of we modest Preacher moving around estimates. is that episodes, in mentioned next the we a week the question, Fear expect of the through and other really off of the your and that a Better the know midway decline Dead. have X Saul versus Walking then, For for so quarter, about now premieres Call And quarter, third and delivery mixes. sequential second

factors. are really those the So, all

Joshua W. Sapan

address I – didn't I'm sorry.

mentioned about You lot. growth, and it's we on a studio think something gating factor

then in series We in later. success elsewhere which globe which the We've our first factor. And to There's to now goes dozens on point gating has around shot your any one have mentioned economic we developed pattern much collectively, time. us want – it degree how relates through being question we've put the that because of our as – system the system on outlets been some of parameters. of at the essentially of limits it to obviously and developed

times a for and because the resource for time whether may to We creative third into, we asked enter produce economic enough very to stability move that. by take have We'll complemented has we're we into to of at and and work us that, world. wherewithal that us for and business been smart a others, – parties that's resource and whether and at upside return, enough look explore for

Michael Morris

Great. Thank you.

Operator

line Fargo. of next Marci from of comes the Your Wells question Ryvicker

Your line open. is

Marci L. Ryvicker

expected. Preacher on the have, just delivered or question I sounded what delivery responded like first, clarification what was Thanks. a maybe And you Dietland. about last you that you and than less it

just know want clarify to Levity that. then Entertainment RLJ and you we all that I don't secondly, And well. So,

to shape line? incremental expecting So, might there make or improvements some you investments relatively are the be where are these in good along

Edward A. Carroll

say, Dietland, Right, in that with audience of Hey, premier. different and very pretty Preacher to reception bringing the Dietland is it very, models. its I'll Marci. a happy and just historically AMC. And so, close comes to critical our

haven't some to who is and this as our Our new bringing male AMC here for been centric much normal shows. is of viewers SKU boy fan

doing So, like us. what it's we for

Joshua W. Sapan

streaming They done that was distributing On it management team very fundamentally early, have converted resources owned took was RLJE, limited a of nothing IP, fairly on is were They DVDs – in on they been has the some a with relative did in and basis. and to what a shape. answer short early, and superb. early good company They definitely business. they that different

I and So, admiration frankly of in stand their capabilities. we

think under their constrained. as the are I resources now AMC new not relationship,

as they capital ability opposed And structure as so, to certainly capital market growth the subscriber now capability and have operational being intended and without see. to structure the they on that opportunity drive to impact

supporter, great on people, for comedy list. those think have or that a well. high really decades groups track better now in as good record have On business plans home. and that a Funny have entrepreneurial, capability. of a or with include So, physical and in same We their we you lot and but believe shape, should we very through more management with which I would presence, because Levity their time consistency to to television now, spend ownership, you not just not They're home the of has bring been Die, expand were, only and what resourced I think similarly The business. years say, great production But ally, often as creative formats, not good shape it's bring sustaining rather They – team We And I answer. in Die I'd guys a potentially of in see in and for operating these a couple of good really, supportive we each their in businesses say, home we might producers like were now IP I'll few imagine. better Funny home to multiple but only and of personally, know as that those well. and remarkable XX-plus Levity, them them partners of a think avenues. integrity. core

sort their I to channel I'd to think a did on health. the planet. I and hit they've striking, week. And and you is brilliant, of The the a just sort one IFC are a here, word use Brockmire already takeover at I'd look of take that what if stunning, came that's believe, brought we, like impact contributing, creative night think, channel to our ratio

other and pleased that employees with here our because the can really think capabilities it we Levity, and have and overseas. thrilled in I as to I'm And of aperture Funny And or what energized that with goes our RLJE, say AMC people are – IFC channel. world be Die. many so do ideas X,XXX I or with the with those people Networks that we're our business beyond of expands we formal and forward

Marci L. Ryvicker

Great. Thank you.

Seth Zaslow

take one question, last we don't why Operator, please?

Operator

you. Thank Sure.

Alexia Quadrani the line question comes JPMorgan. of next of Your from

open. Your line is

Alexia S. Quadrani

you. Thank

company the mentioned to I will the or in the investing talked general. the questions. in quarter, interest sub opening up of growth Josh, back your priority year, I'm I quick a partnerships gaming. the how in guess, think two about in half for sub that continue? your then remarks for just follow assume an growth you just is the Just your on mobile in big you are And positive do you guide curious

Joshua W. Sapan

Yeah.

want we So it's mobile go I did reflective we to in. think B, it on And mentioned gaming, think that A, the important; because, we an also we direction it's it. of It's achievement.

time. We the are IP all developing

for and it of adults. quiet, some And is studied

Terror, in mix, with The be it extraordinary which of was mix that of is a something supernatural Terror. Some and the is mixed some next The will incarnation of thematic of I think reappear sort actually drama

and younger of appeal is television And people games. than of it to spend on including some skewing distinct who other time platforms

soon Into got And are to as Preacher, [Stan people to Who, Versus et the Badlands, so Walking door Dead, Fear you Dead, things you've that them utter Comic-Con at Doctor the shut (XX:XX), as Against out. the Evil] the Walking cetera, all keep Stan (sic) Evil

to in don't IP instance, we forward, as mining go smart rich particularly us have So, opportunity a that we're we that for to think it's there's each think all and be but the rights only we group we television on cable from owner natural and first company, we putting channel and think gaming to developing ourselves is developer, to and and went of a of content extension IP – not that.

say of very on a say. I a is to things on to MVPDs. They're quarter. I penetrated any couple well of we're as terms growing. I In I virtual do exactly sub number What growth, think that wouldn't would how one we're put going these in mentioned

a at growth that will on a surprising; well it's They're over the on so We're trend on their basis, a rates what on basis, percentage MVPDs. time. the particularly rather look like them, affect nearly how looks you bit growing. erosion they're If well-positioned offsetting profile traditional our

Alexia S. Quadrani

you. Thank

Seth Zaslow

interest joining right. today's on can for All call in Tom, and us you call. the Well, AMC you for thank everyone conclude your Networks. now

Operator

This concludes today's conference call. Thank you for your participation.

You disconnect. may now

AMC Networks (AMCX) 2 Aug 182018 Q2 Earnings call transcript