Earnings call transcript Q1 2023

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Operator

Good day! And thank you for standing by. Welcome to the AMC Networks, First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please

hand over Vice to would Corporate now speaker conference to like Relations. Seibert, I your the today, and Investor Development President, Nick

Nick Seibert

the you. AMC Conference Thank and morning, welcome Call. Networks Quarter XXXX Good First Earnings to

this Dolan, Chief morning Executive Patrick Executive Commercial Chief Kristin Kim and Officer Kelleher, are Officer. us Officer; O’Connell, Joining Financial

Today’s amcnetworks.com. press release is available on our website at

meaning questions. forward-looking remarks, statements begin then future we’ll Any the for with statements could involve call and certain include prepared XXXX. and or and the performance Litigation Today’s will are Securities may cause uncertainties We the call of differ. of Private Reform that of within results open actual risks results not Act guarantees forward-looking such to

for filings found can a any financial this certain SEC Networks measures. discussion company risks call. discuss required uncertainties. statements AMC reconciliations press to to Today, definitions refer obligation be made and release. disclaims non-GAAP in The any today's The update forward-looking on will of we Please and

With over to that, Kristin. the call turn like to I'd

Kristin Dolan

Good for joining morning, you us. Thank everyone.

as the actionable that, and But perspective analytics more new started recently, on around programming, of opportunity Directors. data than my and I'm the here clear my cable role serving well. a the more CEO know my to have is and career AMC Networks, I decade me gives viewership in last background spent operations here. a Board and company I and of While on we this very advertising

and world that years. our the popular culture, in to we is competency defined by multi-platform we great consumers engage The driven and the acclaim of ability for in that new consumption serve? shows been business the how landscape core do presence for make is that that for known being today a content increasingly AMC critical the and evolve take question is has breakthrough consistent fans. That always content Networks has theme receive the

AMC world. company. Networks future, content at grow value this look of content nimble organization key company I to for partners. I don't an see across think fans here that its I see I and is technology-focused today, When audiences, a data and I a see that expanding around our just number our fast-moving serve heavily relies and advertising and on build platforms and for distribution the a delivers

about On the retail from call idea wholesale transitioning talked a our we to of last mindset. a

For of us, customers and everything that of reorienting is viewers we our means in content sure subscribers, consumption. making world new this company service our and do in

strong as cash pathways on our also free streamline balance content sheet, strong drive flow. the shared reevaluating to costs, and monetization the focus maintain We we organization, reduce a

with margins areas and healthy AOI. Our aggregate, from quarter, million quarter a retaining the last efforts bigger and this subscribers. to while in contributed XX.X and ended first these in the is with on increased and streaming attracting higher-value consolidated We our a focus subscribers streaming represents revenue quarter decline context slight

results quarter-over-quarter competitive a from we Cablevision subscriber retain year-after-year. environment. growth a serve acquire, higher more I'm and customer a deep base and understanding familiar something customers Building my revenue it is from days, takes of very This in came where drove what with to per valuable

in what will I'm results, expand specifics strategy Patrick we distribution-focused financial all our which year. discussion the distinct the say same. on to reaffirming include guidance will for the sales are his the objectives Although that from pleased this doing of are full of are our here, of

Networks about areas a minutes few what spend forward. opportunity see of I frame I'd represent focus talking like to four activities current that AMC our Now, interconnected and as moving

Breaking competency has Bad. back to Mad going and been of the which content, driven this has the and is days success first core company's Men that strength The

with of our a continues Our diversified original among for most that history. record is programming in of producing current the and high-quality slate adults content robust breakout

both the of a featured universe a Vampire of seasons of January, third AMC+ novels. Anne of platform. show a most-watched of unit season Mayfair the expanding and series and the the Anne in second set with Rice. series Witches iconic history works our Mayfair premiere second of active in Interview the development premiered Talamasca, we Rice's most Rice's, the of number secretive successful any we're the in and world of In the We've in potential on organization around Witches greenlit became the

to Daryl universe. locations. set Walking the Walking characters continuing a series' We serve millions Walking Dead, this Gurira, fans fans on New We fall, completed Michonne; iconic recently as new focused Dead on of the coming set production legions stars here and in we're and engage of also June. Dead, York, in Paris continue of in new Rick The Dixon in shows that the popular series reunites premieres most for extensions and that Andrew Dead The with City you enthrall will this new three them and third production Danai know three in Lincoln

interests York Western new this these And AMC at We the seeing way Orphan and on of chapter our new Winds, Giancarlo New crime Ritter. Returning with Monsieur series Spade Black already or Parish, Esposito, franchise with discussions acclaimed Dark Upfront Owen in our and have our Event series noir series we is summer in Clive promoted starring a all exciting McClarnon. with starring in advertisers. strong Zahn we're early month starring last Krysten

levels Acorn are services of strategy entertainment very streaming represents us ALLBLK, remarkable particular engagement. spending, TV, achieving HIDIVE sets differentiated super-serving reasonable the Our With our general of Shudder, a approach from content that and strong viewership and genre fans of our services. apart

of which over in is audiences. particularly a our number games do is NO and breadth terms content offerings quickly week passionate very KO series, depth making I has for surface new HIDIVE called scratch week. growing increasingly believe our an we've fans, example audience hit, one HIDIVE’s with become services, in to service, from begun destination of expand and category. One platform potent our the sought-after opportunity and becoming as launch larger breakout a anime OSHI the of series the our attract only history to of all the the

of and to distribution ways. relates area with an relationships a of expanded that several allow and AMC partner our footprint company innovative focus to being the opportunistic Networks second potential content nimble, and in The value us maximize

to as viewers Our watch, are identities as available shows overarching our and that goal they possible, and drive want and make platforms. the strong to is to whenever wherever while brand we they we across to might ensuring preserve distribute broadly visible ensure all

U.S. distributors, Dish. and portfolio, recently most partner we carriage partnership and as was for Dish advanced record an evidenced well streaming innovative channel Network with strategic an Sling and sought-after channels, and this advertising fast track a has of Networks expansion as our AMC with agreement services, continued as with a of for our reached

position shift. more we as is foundation to seek relationships and AMC that and believe form distribution and to consumers distinct marketplace experience the With this managing bundles. inevitable high-quality a simplified what occupies services. shift a longstanding bundles will forthcoming are of gain It integrated brands, is their beginning a prime our for streaming our when Networks comes evolves, traction various the content These it to

platforms, linear we continue or to digital broad content television and the our streaming third-party a models fast is and own advantage evolve, that of networks, distribution platforms. another As CTV monetization spans have footprint

an addition our grow entire ad-supported ad-supported, and the service distribution us new With revenue flagship of this ecosystem later drive be of business. with our year, streaming tier to important AMC+ will our providing opportunities

mature a of customer-first area company. and call, major third focus, all earlier platforms user Again, and ways promoted interfaces our this did are to cuts business. we throughout are how leads how which and mindset fully interact service-based something built-out with This at successfully our to the the on delivered at referenced from is to designed function. and it our audiences, is was our time This Cablevision, we our shows drive across and I and serve the which a

how organization watching which the best a essential serves that presence, of as number a AMC it that XX-plus mindset requires across viewers. regardless our levels a become a a to and that they we a customer-centric years enable shift viewers, of our reoriented deliver direct to customer the it's an This us company represents we've most Networks, we ensure are market the more establish as we're where from with how, increasing way around At operated in when we data, for significant our relationship helped with organization approaching rethink company, in service. of Even of business highest our or content.

it operating to Our that has as viewers and so to is breaking and company, divided close ways many larger and AMC of I'll aspire that our across shows, to. content delivering proven making one fan of one all remaining business and categories ability areas content impact fourth focused focus, achieve the efficiency. and much platforms. across silos walls We're cultural and area punch its down In and weight companies above and its engagement levels many so of on, Networks

the the optimizing long-term focus and AMC to privilege across on ecosystem. subscriber a as opportunity drive on build growth engagement Networks have and to It's legacy prioritize this audience we relationships, our quality, customer

alongside and next confidence AMC and employees into our I its exceptional assets and we talent colleagues. grow to grateful work have to team every I'm our the one leadership of have that Networks every chapter.

Patrick. the turn to With that, I'll call over

Patrick O'Connell

Kristin. you, Thank

approach the to focus As continue to dynamic highlighted, as strength Kristin our behaviors a consumer efficiency, marketplace, on evolve. nimble succeed and Networks programming, operating continued our AMC with is well-positioned our of to

good and progress couple We costs we've for recalibrate investments and XXXX We past steps feel our free took beyond. over increased made business we drive several in the streamlined the and content of to about the to-date. flow cash to increased and right-sized monetization quarters

our strengthen key longstanding We distributors. continue with to relationships

As Kristin our Networks Dish networks, Sling mentioned, for linear services, with and we fast multi-year a and TV renewal channels. recently streaming completed

$XXX focus our Adjusted quarter revenue XXXX to of consolidated year performance, income increased financial X% million, Consolidated on operating efficiency. $X.XX. on million. adjusted first operating prior to reflects per earnings to our margin a Moving the XX%, X% $XXX strong share from which representing increased was

million. quarter X% grew $XXX to domestic operations X% for $XXX our first In quarter. of segment, the grew million revenue Subscription revenue

First with growth subscribers, We representing $XXX XX% of growth million ended quarters streaming revenue year-over-year. XX%. year-over-year quarter representing million XX.X was the streaming

largely per higher in in a The decline year pricing XX.X roll along off actions this was from due generate subscriber. promotional end a the of subscribers the taken XXXX, and to of focus at our decline of holiday we subscribers values average our we rationalization sequential base on the last subscriber the subscribers revenue reported While with represents subscribers. million increased

As to efficiently. of the continue focused on remain we program overall we our services company, the profitability

some five of less This substantial less month of titles the the the in targeted top If XX approach of than for you economic and look streaming cost an titles $X to illustration March, million business. the powerful services XX of that. advantage our a than at strategic of episode is each the our

revenue. for our last impact partially Moving by to and the non-renewal driven XX.X% that revenue by affiliate discussed a rate Affiliate strategic the was Affiliate in quarter. the performance basic declined increases. domestic we Fubo X% declines contractual with sub-universe revenue in call, offset of

XXXX. last the call. of Content content quarter in TV We for licensing for licensing and including the produced grew remainder revenue of driven this any $XX first revenue material content was represented for Apple deliveries million. not on availability or final in XX% the of Studios increase series associated The SILO we us AMC SILO anticipate the $XXX as Wall; in deliveries the timing our expense that licensing revenue formerly to approximately year. known about do a detail for project with of of quarter the of million deliveries, by spoke by revenue The

revenue programming, by XX% offset and in First revenue quarter softness of advertising to advanced digital due original linear episodes to decline is revenue the decreased in fewer million. advertising ad and domestic advertising lower growth. operations The primarily ratings, $XXX market partly

Walking content, particularly For XXXX first Killing episodes comparison important Dead to the strong Eve. ad the marketplace a of is it of quarter including robust and and with note purposes, that was more

as environment networks supported continue platforms similar experience ad digital Our peers. to our ad and a

of climate, our partners with Scatter given Response XXXX, conservative economic remain For soft spending. the the and first quarter remains Direct with advertising their

lower of adjusted in performance offset XX% operations margin income by streaming revenues the a and $XXX with million decreased and AOI operating was for advertising to partly prior and year. increased affiliate first marketing, Domestic the largely revenues. consistent attributable was investment programming quarter, with

Moving to international other. and

revenues distribution ratings $XXX due in to International XXXX on two million, first by the down decreased to a due new and and basis. offset of Media. X% the For partly of quarter, in revenues X% and at the timing XX/X revenue a currency of increased lower in UK, to productions channel lower impact the the other reflect advertising channels but the increased wind planned of launch constant Spain revenues

AOI other a expenses, AOI SG&A on partly decrease currency the was revenue and operating quarter, constant X% to and increased and for International first basis. $XX driven offset X% expenses. million performance decreased technical lower by performance by of a

on flow and sheet. Moving the to cash balance

to payments, As updated payments non-controlling to our we’ve of as distributions the discussed $XX the definition cash of was for include flow no free initiatives. timing Consolidated on impact to last interests. as the certain of our call, well cash and free $XXX cash million negative related production related our reflected longer first quarter flow million restructuring

and during cash last expect our our free end. the XXXX first call, to closer year stated productions the generate cash to of of to due flow full year majority the outflows we net XXXX, As timing you half of in anticipate we the for on

the of a ended and X.Xx. ratio debt finance $X.X with billion quarter approximately of net consolidated We net leverage first leases and

have million and in $XXX credit of of million We cash our liquidity substantial $XXX including balance and financial revolving approximately sheet undrawn the $X.X flexibility billion, facility. total

and to addressing in opportunistic active will continue and the XXXX XXXX maturities. our monitor We and markets be

opportunistic. Our capital disciplined allocation and philosophy remains

while we with cash First, look content our that compelling with profitability a support focus balancing particular flow creating audiences, to the generation. and resonates business overall towards

of and shareholders. on and balance Second, Further M&A priority the we capital the is list our remain upcoming to our maturities. down focused returning sheet addressing pursuit strategic

our today. guidance reiterating XXXX Moving financial outlook, are we to our

to continue understood net billion, revenue well- to consolidated to approximately be the dynamics impacting largely $X.X the expect We industry. due

gross to growth lower and compared streaming spend the moderated expect of lower year as additions our marketing to levels drive in full We revenue for efficiencies. driven as marketing due we XXXX, by

and decrease a will the titles, certain the end percentage which Regarding that Universe in by trends as to continue We be several of incrementally will our and offset new we XXXX. SILO XXXX impacted affected non-renewal anticipate at that content by points international revenues. cord be comparison affiliate Dead is licensing due with year-over-year revenues deliveries of Fubo year-over-year will licensing Walking partly anticipate the comparison cutting revenue, by our occurred

programming through for Moving growth. offset XXXX, advertising, linear market, to expect XXXX we ad digital advertising and revenue continue Lower lower trends linear partially hours. the of of advanced the including overall those soft be by multiple to ratings a partly notwithstanding advertising expect cost represent full generated. But we year savings result revenue the a will titles original fewer have that, the would ratings and

the measures, Regarding benefits in costs. realizing adjusted we year-over-year and staff material cost income, operating marketing, of our including are other reductions strategic programming,

range year $XXX full in that $XXX XXXX, expect be the to million. we AOI continue consolidated of For the of to will million

of a range range cash with We one-time our $XX plan. the on reported basis continue of to restructuring million negative to generate impact flow also includes year. in associated $XXX of cash million to the $XX free and million expect flow for approximately This free full the cash represents payments

million in items. would million free $XXX Our the to of these free $XXX excluding range flow, cash one-time of be flow cash outlook

flow time. believe we this we maintain and Additionally, level cash can grow over of

to Regarding highly content, we to audiences. focus on content efficient our curated making continue decisions superserve and

We be are peak approximately content to we $X.X content XXXX. investment, for cash past billion and to investment expect continue

billion $X period for historic than a content in strong more that, a over we to further than our and out content that cash This the is area, support slate will businesses, and represents be a of investment levels. pre-pandemic of our with investment. prior drive anticipate our frankly rationalization content Looking consistent enough

as our key strategy. differentiated a for AMC be execute will Networks we year XXXX

our over the grow cash we expect monetization, to by and progress our organization free encouraged our made, streamlining and meaningfully flow continue time. to are optimizing we've We

line With operator, for please that open the questions.

Operator

Thank [Operator you. Instructions].

your Our first with question. Michael Michael, with question Morris please Securities. comes Guggenheim from go ahead

Unidentified Analyst

Hi, on [inaudible] good Morris. This morning. for Charlie is Michael

question Just me. a quick from

ARPU point as peers? there, and tiers would And AMC+ the services? the can are niche streaming making of ad consumer lower the whether and Thank any ad offset about other of On kind more share thinking expectations you ARPUs expected considering between and that for any choice then, about anticipated tier, kind price price multiple your you're the on point, support ad-supported you're how a details and your those you. determination, just you

Kristin Dolan

Kristin. Charlie. Thanks It's

supported mentioned, superserve audiences, our that did and and call it'll AMC+. holistic tier. the recent you choice you ad for looking it October think ARPU advertisers. on As consumers, to provide the our great we will current obviously more upfront expectations front. a give to an at that continue probably give a for opportunity tier and announce to our at We're solution We see on future I expand next launch more Kim advertising be details and more robust But and pricing for as

Unidentified Analyst

Great. Thank you.

Operator

question. for next All our right, standby

next ahead Our Macquarie. question. Tim, go from comes with Tim question Nollen please with your

Ross Compton

This or is to kind does [ph]? guys. I'm come streaming now in and how Are Thanks. And ads services business media in your in Hi linear measurements business. using measurement for guys XXX, give And an other to use measurement sell XXX discuss any you're Thanks background addition those you if the could of for in Tim. advantage your Ross do Compton interested alternative measurement XXX on with question. in to the in other increase CPM place? an and you you or in taking services?

Kristin Dolan

and I'll Kristin. internally, capability our One successful Ross. more I attribution. tenure, time AMC of It's would and and Kim. the sophistication Kim's the then provable hand of start, over that show use for for validate attribution in targeting say is we it bulk the has to results that other used probably to be a that service provides delivering XXX team has a services Great. Networks. placement. than team measurement is segmentation then the the just to really are general ad most I'll Thanks advertising level two to and sales and the of ad

at So to and we're use them is to that that to currently alternative XXX Audience+ own But we the back-end bit than really internally talk capabilities let other our our maximize Kim measurement known. capabilities. media in how I'll about participating integration a agency of measure providing But not announcement. to and show the little the and attribution look currencies through our more can spend

Kim Kelleher

say Kristin this alternative we I'd with what ongoing was with work coming to we're we're in and including measurement measurement alternative currency clients course who Comscore, in XXX VideoAmp, open willing sharing, dialogues front of Ross, off Building partner year. Sure. up just and various with. companies, on very all closely and the and And iSpot,

is Nielsen that and witnessing evaluating in board, products taking the a I'm we're of marketplace a member are Joint their row ONE new time, And stance formed launch. our VAB measurement. JIC, along Committee. to for active unified actively the been we we've on standing Our long with prior their I Nielsen this we're But with we're also certification and think ad interest. that following member the newly innovation an streaming comes out front of Industry the on ad

Ross Compton

Thanks. That's you. really helpful. Thank

Operator

your with go question Feldman Brett ahead Our with please Goldman from question. next comes Brett, Sachs.

Brett Feldman

Great.

mind. questions you streaming the Just strategy, evolution your two don't about in if

maybe was journey terms to on a Kristin, first way. And level. that being of hoping the more Well is you being where you've a bit much So are in more talked I oriented elaborate focused of think customer can about business. retail-centric or one that you you high kind

well to? you comment you think that, So place as actually needed? it this even if need structure at culturally of operational to Do the is you you just operationally. partners any higher the I'm are have in business. investment of needs think as And company to do thinking do additional about it? Do where potentially on the you maybe evolution you terms you any level, in a And think

consolidate media streaming, we've platforms. streaming of begin your flagship services lot peers sticking into in then with their to And seen a space the

done AMC+. if wondering traction to versus a to diverse is market AMC+, it of flagship, thoughts that a have in really your of came well own you streaming very of continuing and maybe elaborate with You a but you've bit of your this demos, around lot niche with all have services to on into maintain can products their which Thanks. potentially portfolio streaming portfolio I'm consolidating started

Kristin Dolan

I'm to question, not the going repeat you to Brett. ask

operationally, So start all I'll right, there.

that's right, then to and company I linear why brought So at was when midst was the the at just the a pieces, a the company. from having between time different we is XX-year-old industry are looking new transition shifting I'm that this an ways into of lot role, operator, digital, a of in advertising, and the moving

for quarter the And took needed years, of had we so for in said many to colleagues goodbye We me been a to year. and pain of coming reorient fourth last the with lot in, business. a lot we that really us

our So do the how we've well forward the our operation, distribution service customers. looking past more to as looking opportunities. that. We're a streamlining customers, work, involve at headcount we've bulk perspective, our of from direct-to-consumer them as lot new because that And we moved partners, of both a from done not but

reimagining with. our and center service I a something functions which our customer general, experience is have lot in of call So

the Reimagining backend.

we to effective acquired most place unify built the facilitate that businesses figure know, out As of solution straight-out, streamers to need for technology ourselves, others because we what most in a future-proof put and there's our and grow. and can backend efficient we really off-the-shelf streaming we certain sort streaming, people not and as

really, the areas function two service those the customer So big infrastructure. are backend and

to. as either far additional leave speak As but to to would anything that I dramatic don't areas, see in investment, those we Patrick of

opening the that's set lanes. swim interact And up we the I eliminating other And We thing how overall think silos, company. we then the at reimagining said with each important as really of is some other. remarks, morale the different just in here had

the one had as So and you you and another, also were employees, trifurcated. of then linear as bucket had streaming brands bifurcated

are years where that for streamlined and I the stuff on. people brands been, last into what's and And all sort half under eliminated matrices and of more Kim. that So sales forward-looking delivered approach we own a they the think have now very platforms we've a put advertising a group of then kind the of three

a there. sales so beneficial, that that sales cross-platform measurement, came been from we're having good and in really So has understands team digital attribution shape

at distribution I the bet the a solve new great of and side, don't to I'm management of not On the would again, heart. against virtual MVPDs versus and operator streaming we to services customer the linear really cable providing the board. and – kind ways a MVPDs question find multiple and unique user experience across

fact I from love distributors So longstanding relationships the a that these perspective. we multi-platform with have

So success, be our I our good success can, possibly that's will everywhere center brands is goal front think their our piece. a so and to have we and

and said consolidation, within we the as which on Sundance, transactional are in transactional VODs, and more our which also do have broad-based does includes services, their have in sub-brands us IFC then the they AMC+. now for what approach which And unique well are Shudder and But as deliver. you we AMC+,

point, So don't other this would but broadest others the be to I AMC+ think service combinations targeted. we be and anticipate general continue at any our

else? add to want you Kim, So anything

Kim Kelleher

I part strategy The And would choice. seeing, see you really add as bundling that meets think consumer I need going the our a for of only of be emergence is, which forward. being we're actually to the going we're thing well-positioned bundling can for

Brett Feldman

affecting at about end of point and rider’s mind, and could I'm the I a get take question strike, in If on Thank your up to this you the curious business, on series wouldn't topic. a could what you. deliveries. We're orders a of asked squeeze particularly terms in if different starting

Kristin Dolan

point. next about have rider’s concerns strike we're say for real would of we well-positioned so very I this you. and Thank the year, all this no at into year

Brett Feldman

Thank you for taking the question.

Kristin Dolan

you. Thank

Operator

Douglas question question. with TD comes your go next Creutz from Doug, with Cowen. ahead Our

Doug Creutz

I might lowest your since been, that had I'm going thinking in noteworthy you if quarter good or thank the Yes, caught so noticed they forward? were level of in abnormal? you. Is make I SG&A quarter of a it the use to SG&A think costs this sort costs Anything XXXX. about QX the

Patrick O'Connell

Hey Doug, it's for the Thanks Patrick. question.

the last costs levers had. the so, taken cost and we've the Over are with steps we've biggest or kind that two business. significant of starts take to quarter Those programming both That marketing. of out

So that goodbye we do earlier we've sort going QX that so colleagues said numbers of the here. results number through in to flowing QX into regard. the and having see of that Kristin's done to of point kind to a part of A you was to of we're in what our say

So I going reasonable say, yes, would that's forward a use number to here.

of think I you cost from result for what broadly, margin, should driving of as us so our much very and we we've a And understand are more business this that is the actions some continue taken, both marketing and on to through we're expect and the the programming side quarter of on yield margin year. seeing reductions side, we those that this and on balance the in AOI the

growth that today. the we between levers the free flow So while investing and attract to for to audiences to partners business that there's business also kind of an balancing cash have, continue we the the having here drive act it's a recognize in imperative and

we that's apparatus. stand So from kind kind of cost of kind where of summary an in overall

Doug Creutz

Okay, thank you.

Operator

MoffettNathanson. go ahead Robert, question. comes your of Fishman from next Our Robert with question

Robert Fishman

pull then to international does U.S. strategy, networks? just Thank on on focus linear international outside it Good we impacted even these of provide that And the the detail the end sell fees you of everyone. affiliate investing behind on non-renewal strategic make some going and some the should Can morning, of more these forward? sense at decisions ‘XX expect you. and the cash back whether given the more flow,

Patrick O'Connell

Robert. It's hey Patrick. Yeah,

we the I strategic that non-renewal, – one-off. we Fubo. On as identified to that consider a have consider be that

that last drive one imperative of were a the business their towards more had strategic I think live programming. to carried. Fubo entertainment they We sports remaining bundles

to market Obviously, kind of as in price maintain we well. imperative discipline have an the

were kind we make relationship it that economics So go, them given sense on were as the offer. to sorry as of to continue see didn't the

Kim Kelleher

key would I all add, This remarks with our and into just And Kim, anticipate we Patrick's obviously to long is Robert. Dish, well and around and partnerships. partners that. are Kristen conversations add successful I'd just in

Kristin Dolan

international the right regions say just variety is than serve would different they I plan, We international the really on very have different now. constructs And a U.S. Great. and of interesting.

very There basic have. just example, to to I renewal just for those – a had major Spain wanted $XX is in continues businesses and Europe areas, allowed that. I'm we So Northern Spain, to month. about that international be to cable and speak is coming Romania margins – we a sorry, the from that confirm $XX Hungary healthy

widely there. will grow and throughout streaming some distributed we're So Spain, we

our is overall, international even we're and spending The plan so on we U.K. bit off as there energy though is different, and very working margins that. But through it's to healthy. continue reasonable time It percentage business, very a appropriate. small of throws little a

Robert Fishman

Thank you.

Operator

next Karnovsky ahead from with go our David, question. comes question And JPMorgan. David your with

David Karnovsky

Just domestic any view was trended if on the you color the demand your April. through into direction wanted I wanted Kristen, can on of quarter how or content company. to the to on see And give then I there get advertising,

transition You're spinoff Walking Dead arguably time series of at ending with a and some beginning.

guess there of a I what secondly, And of gives see room kind areas kind are of improvement? in health Thanks. programming then So you perspective first, confidence franchise? that from the you where for

Patrick O'Connell

tough due this of color. and the for Saul. Patrick. on part. Obviously, it throw Better it's ‘XX with were tentpole lower particular, spoken Yeah. and Dead our was franchises, comp the few Kim to in Hey Walking both and was of quarter QX, a some which to, expected linear episodes some Call softness I'll lapping In including side ad in on Dead. say, It decline David, additional ad the start of I we've ratings, Walking market, would we the our to in

did we So these were anticipated. we little than frankly, a bit expected. better And

it. feel we good about actually pretty So

return immediate earlier, the said there's ad in that in revenues. on As is significantly these programming an excess foregone reductions of I

near-term prudent clearly balanced ROI, for So business the driving continued against investment.

I'll the Kim talk let to color.

Kim Kelleher

David, now Frankly right just economic environment off Yeah. soft space, spending just our I'd yes, really the because a with competitors conservative in uncertainty. marketers scatter seeing building say, similar to and mean we're being their I Patrick the shared. what of

of life we're and about April, as said, category as spending, from pharmaceutical in That your signs both telecom, back. seeing early and personal strength being we spending coming care, to automotive real health well point and are seeing

very see to a So trend much continue. we hope

seeing on the I’d us very capture thing side. more more automated foundation advertisers, mention is just solid other which our a partnerships, which giving from our business many is, enabling only predictability is growth programmatic digital and strong also we're The to

Kristin Dolan

take the And content I'll question. Great. then

to I David, that continues I be Dead be continue New very universe. that's as will franchise. City popular background. first screened know the the it's to is the the York And and next features month engaging so two one just as You we're a and Walking the dramatic that the two, And City, and been, just ever in excited Dead premiering watched, compelling that show

have and I Anne pleased will Witches the that universe Rice high the we Mayfair IP. particularly say, we with activate that other of hopes whole and and grow through Vampire were really, very a all the of continuing Interview acquisition, with really performance for of franchise to

Parish our last looking another killer. with five, grew of enamored, is of Spade did the of that kind actually up slate then The comments, set, watched we and the action, episode pivotal really people then like well point Friday particularly drama. more New after is that final Lucky episode Giancarlo And incredibly the became Monsieur Hank, show it series. you in audiences which week-over-week Owen those is for It's And we which had as with about Clive fast interesting Orleans coming at amazing. spoke opening

other, And then, streaming services, on on we've that great we have some acquired. the the films

about was which Lost well. this really read I acquired of The breakout did of that think horror sort people lot Skinamarink, King, that a Corsage, a heard film we So and and year

that as Oshi we're like anime the and No shows, of those really feeling of content and strong. some we Ko mentioned, Between some just

is U.K. later premiere of ago. month is of up three great the on premiered coming in season this the Valley, couple months three which is a Happy Acorn, drama. which other British a like season That that's when good top was conversation The really crime the

investment we is So our down the early throughout where at were the successful I feel into about settling like as around and really billion market slate good really teens Patrick $X XX’s. mentioned,

an creating so maintain to content, still everything the past we appropriate can and really as content. that like our quality good that the level excellent So breakout delivering and great really high really success comfortable feeling very franchising feel we about that's present that in speaks

Operator

UBS. your Gravett please with Ryan with Ryan, comes Our next ahead question from go question.

Ryan Gravett

Great. business. Thank just the licensing you. on Maybe

beyond, did TV especially Apple series. opportunities you down licensing towards mentioned see But leverage given some just thinking about big this year Thanks. I of would XXXX. your with how just to and for production your that it the the franchise deliveries you of you're approaching guess like had coming IP be the You more back. that capabilities And you end curious in ‘XX

Kristin Dolan

I think that's three-parter. like a

we to start want I'll line dealer. arms sort overall. don't between walking So definitely of an be the We're

have strong and We very franchises. strong very brands

our doing is that optimizing us and way we're looking can allows preserve that brand films distribution everywhere still of we what a associated that's the each So with I of the those equity to our at franchises in think series.

from know AMC. you'll it's So coming

AMC much I make You'll the that as our the and we those what we doing and particularly to on franchises are and coming Walking services. doing Dead, we keep and of the as monetize that possible. effort, them is to will it's brand streaming equity our on thing to any distribute content know already But also main with because brands, preserve visibly from we're linear think own continue will like The

Kim Kelleher

it. it The in and only thinking Kristin's of content, add that thing think viewers we and that is best our and we're the to monetize I'd see by of is with way that sure want making fandom to it's show to the the is portfolio show front what point

that So shows. on region-by-region international certain But to level, at globally means open conversations more than the right going those now. we're so

show perhaps consider we're the We to and distribute very same map to show. how license approach. Domestically, it's that each a and going much plan

the feel which So to like strategy. SILO while a licensing year-over-year it's in will yield second, down actually content the with optimizing I Patrick talk our in maximizing and comps, are we

Patrick O'Connell

tactical There's take it can will it's We a own thing – monetize. we to a gives a project I I'd we in no Yeah. is perch that approach of that that a as us of program The fantastic in highly and do, sort terms relationships that we the have web there our tactical being of right. dealer” approach. Patrick. Hey networks, add “arms to only market vis-a-vis our Ryan, will characterize

couple there's makes Our swings. production margin revenue, for an we of SILO and take economic days reasonable deals can a But ago chasing because be we will which sense produce have ourselves. If the those we to at of evidence earn we market in to equation a that. don't a that premiered generate is of reasonable risk,

have economics make sense. highly tactical the again, So and to

Ryan Gravett

you all. Thank Great.

Operator

question-and-answer over now to back Seibert This concludes Nick I our like period. would for turn it to remarks. closing

Nick Seibert

everyone time concludes Thank the This for you your today. call.

Operator

conclude Thank in does This program. our you for conference. your participation today's

disconnect. You may now

AMC Networks (AMCX) 9 May 232023 Q1 Earnings call transcript