AMC Global Media Inc. Q1 FY2025 earnings call

• Programming Focus: Strong shows like Dark Winds season 3, The Walking Dead: Dead City season 2. Upcoming series include Talamasca: The Secret Order, and new franchise Great American Stories with The Grapes of Wrath. Film group rebranded as IFC Entertainment Group with Clown in a Cornfield.
• Partnerships: Ad-supported AMC+ on Charter, integrated AMC+ on Philo, upfront content showcase, new AMCN Outcomes attribution product, and partnerships with Sphere for FearFest.
• Profitability: First quarter free cash flow $94 million, on track for $220 million full-year. Refinements in streaming subscriber and revenue definitions to align with partnership focus.

Domestic Operations: Revenue decreased 7% to $486 million. Subscription revenue fell 3% due to a 12% decline in affiliate revenue, offset by 8% growth in streaming revenue. Streaming subscribers ended the quarter at 10.2 million, flat year-over-year. Advertising revenue dropped 15% primarily due to lower linear ratings. Content licensing revenue was $54 million. Domestic operations AOI was $124 million, down 24%. International Segment: Revenue decreased 7% to $70 million. Subscription revenue declined 12% due to Movistar non-renewal in Spain. Advertising revenue increased 5% in the UK but was offset by lower in other European markets. International AOI decreased 26% to $10 million.

• Expected free cash flow of approximately $220 million for the full year.
• Consolidated revenue expected to be ~$2.3 billion, AOI in the range of $400 million to $420 million.
• Streaming revenue growth to accelerate with rate initiatives and content licensing rebound.
• Net debt $1.5 billion, net leverage ratio 2.9 times, with no bond maturities until 2029 and over $1 billion in liquidity.

• Macro uncertainty impacting ad market, with digital supply pressure affecting pricing and fill rates.
• Refinements in streaming subscriber definitions may affect comparisons, but monitored.
• Non-renewal with Movistar in Spain and European market advertising fluctuations in international segment.

Q: Details on streaming subscribers from bundled video packages, uptake on Spectrum TV, cannibalization risk, affiliate revenues A: Kristin Dolan and Patrick O'Connell discuss positive uptake with Charter, no significant cannibalization concern, affiliate revenues tied to partner distribution strategy.

Q: Advertising revenue from streaming, international subscription revenue lap for Movistar non-renewal A: Kim Kelleher talks about streaming advertising contribution, Kristin Dolan addresses Movistar non-renewal and plans to offset revenue changes.

Q: Seasonality, revenue acceleration, ad market exposure A: Patrick O'Connell and Kim Kelleher discuss revenue acceleration from streaming price actions and content licensing, ad market uncertainty and company's strategies to navigate.

Q: Content spend and amortization expectations A: Patrick O'Connell states content spend and amortization slightly down, volume of productions flat, quality maintained.