AMC Networks (AMCX) 5 Aug 222022 Q2 Earnings call transcript

Good day ladies and gentlemen. Thank you for standing by and welcome to AMC Networks’ Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference may be recorded. to Seibert, conference Development Vice Relations. like speaker to and now Nick host, President would hand over the your Investor I of Corporate

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

our Interim Partnerships. Joining Chris Executive is Today’s Chief Officer; press Spade, Matt President, Kelleher, on and Officer; and Officer release Chief Kim us website Operating Commercial are this Financial morning at Blank, amcnetworks.com. Chief Revenue available and

the prepared to discussion the Networks statements We of financial of reconciliations statements any risks questions. and uncertainties found end Private remarks call of will performance today’s could open certain and for Matt. uncertainties. within to for such are actual call on update at we’ll statements With I’d Securities Please with future and of meaning turn to that can will press cause or made include may certain forward-looking like differ. begin filings this Matt? to we guarantees AMC call XXXX. company Any Act Today’s refer and then results risks the results not Litigation forward-looking Reform to the of definitions that, forward-looking the and any The Today, required over discuss SEC obligation a be disclaims release. The measures. call. non-GAAP involve

joining thanks us. Nick. you, for everyone morning, Thank and Good

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Thank Chris It's very the and you, day. on a on meaningful Good be call. a to congratulations morning, everyone. pleasure

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build want partners. business our have the take a we card So certain as example well, do see makes again, channel if with that great as also Kim, to we're streaming offerings is for you it grow, to And our question? this sense. then Spain looking it FAST

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The that, to the question other I it important add would is is an windowing. thing Thomas, because

is original and as at windowing So unique it then owning as we look and about as our premiering our movies owning And another series how Fast content at we and we AVOD windowing monetizing content through the window. of think sure we're of exclusivity the look with us for that we power output possible, of lot moves make the revenue cycle, and also there's to maximizing have a as and much to the want ownership content. the

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forward. confident for deliver can pretty we we that feel our audiences So going Thanks.

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which ask role. Good us On Chris, is on you about about Spain, one the gave margins. more great Hi, about to congratulations one I and and you. new details thank international, morning want international, helpful.

product – feel particular? like the XXs. the hearing sort we're you You about would follow can robust you is by long-term of long-term streaming plan of to sort of much XXs a in of that appreciate know product success for just Spain to that sort view named as mid- looking talk resistance helpful business of what for the you how on XXs structure year that you markets. you're sort in opportunity the of might used is few is and When think or about of one markets nature a the other the like have how AOI be are margin, low kind margin, to to you high markets of high you us level game more like thinking how streaming the a higher-margin new the think margin that can great be well. that even much try what of differently XXs same Can expansion can it's each this on this streaming then or mix Thank across you forecast be linear the industry margin. of side template where I should had that of in I about in at see the and look there? about could talk of you Maybe it you you. the And to that Spain international number a the how or if be other to we there of in on hear if that about.

question is for us. to a Relative and partner continues Mike. a a internationally good be country-by-country basis. everything Amazon on are international, strong the how Apple on template to approaching a bellwether the for Thanks, and example actually Spain first we

do when as we partners are our linear strong look we then globally. market. those So our But two you already in business primary probably footholds each know, have to

Spain. relationships we've in So in came of the cetera, opportunity really Vodafone, our established Orange already out et

our countries we the we in will basis, fully continue partnerships strong linear a on are pursue to where So established there.

maximizing we We have we unique that we pretty requirements, starting rights that results copy So, of standpoint in partnerships. cetera, tech the to pretty that rapidly direct-to-consumer distribution from can can, a for have quickly it and tech then et that place And stack and and also we really stack are from offering. our so running. the quickly can be la to country. transferable get each is certain obviously, up our But carte the the

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a a how where But on good strategy for second we're on available window, its season on it as have already we be looking AMC+ first Moonhaven linear Our next on would the strong would where put freshman there right is we of showing for second to also. Moonhaven, example that, it before now exclusively actually then had It's linear. And things exclusively AMC+. about, then just out. only season. would which We're talking first. will year evolve window it come a

basis early that, things And Kim where that additions. what and we've Winds had a healthy with doing episode on with like we made the that had Dark seeing The So Walking night. Dead as success were available mentioned, we as with had one-off next subscriber success

Chris. appreciate Thank Great. I you, it.

Thank you.

our Michael of the Thank you. Nathanson question line And is with next MaffettNathanson. from coming

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Thanks.

you. Thank

JPMorgan. question next our [Operator is Instructions] the David of line from And Karnovsky coming with

Your line is open.

congratulations Question on Chris. to and I'll add for the

more increases and You an recently opportunity some at to noted services price your of forward. do going

potentially now price So to as then the I direction. industry services. would economic momentum you. reaches potential at your get for wondering be advertising to mass how on any think that about streamers least And and I the near your for if ad view across this your then critical Thank the changes the larger was We're real raises And interested seeing factor some you this, a to of impact limiting from introducing about streaming tiers? updated to as thoughts in churn risk term? on know on hoping just

Thank you, David.

should a wonder consumers. that want $X, almost and On and minimal question, if we It to nonevent almost it's Acorn raise because interesting don't when but ALLBLK, like the me price an it we was made increase question the by churn. we for to raise we price $X do had

So that it's when a is seeing And proposition subscriber but the a you're base, smaller is it's super super the there real. serving other fans we're much and the stickiness fan. serve targeted base, you value thing obviously, because more there's

increase Matt that So had the pricing is dollar critical sure talked to having minimal a that But the about I standpoint, think seen rate effect. refresh make that from continues.

continue also is. not to where forward to ceiling about see going because test will trying just price it's the We

some dynamics. resilience again, I'll with to to the supported turn have services all specificity helps ad over Kim the targeted price it then manage We question. for there. And But the

Chris. Thanks

offerings types that the see comes because the have today. to streaming existing We when I you really advertising. like have we -- infrastructure significant when of look it we varied at

So in that's measured advertising considering our including AVOD innovations to services. and But offerings, continue going SVOD on we to advanced ones all continue think be watch our the around. of space, and Fast thoughtful to going addressable CTV decisions something be about types offerings as evolve, we're to I and ad-supported our make very

you. Thank

our question coming is Instructions] with from the line Wells next Steven Cahall Fargo. you. [Operator of Thank And

Your line is open.

lot kind Yes, to sign-ups. great seen they with in thanks. Call by have are shows. Dead when I'll of start What a maybe a big churn we've question The Walking their great prior your a different asking Better slightly Saul finales those get sometimes way. shows and of is they peers

about going is, company role, kind make So big kind revenue driven AOI And lot again, out finales? by these pivot to as new a I'm as to of back There's of sort from is it content, of just wondering, could grows going how side. year international are on million do this launches, the you then, have congratulations, then pressures you progression to as the $XX question peak for flattens kind it the on the the is and the Chris, growth. it that cycle get going think content. mini over so And here more this we you think have linear Costs to big about hot you've to or journey into think the with to target? run a of investors then $XX subs, to it that of wonder I taken that to million be you reasonable of

do you maybe Thank place? a compounding getting trajectory see it back more how bit that you. to of the media nice kind AOI was of that stable So AMC when was of at

I consistently specifically. of big let for way their look to and them beginnings these this has Dead strategically is Walking we I'll shows. answer not season start again, back think season with to Chris But on ends. as to The true some been And We in that The talent, to with we'll to that that that into and also do said various that shows do bring next do the Saul years. audiences for that before, of as doing I couple that and with franchise. franchise, can and continue continue the we new we're ways

successful culture shows are As culture, continue can that that in is the the tradition we few really been type that well, in believe this past. coming changed the audience fact shows off being are play the of a the have of that that of we've we and

what the So audiences ability done think in and to continuation in universe. what our content past the of than areas doing enhancing and those there's we've the to even option streaming other serve of we're no in

period right meaningful second driving growth standpoint and our how we an get AOI is Steven, AMC growth? a expansion. global our new important investment. in the back at from revenue your services, now, growing platform To question, in Networks initiatives, digital streaming mean crossroads I do to of in we're of

you and in AOI So our monitor the growth. an cadence to from now, trajectory right building about think of of the moment that. standpoint we'll We're as of important continue

with margin we're is going havoc our thing general. other to re in The not

will right in place we're margin the with we're have focused targeted, we but then acquisition to that in and from way where is deliberately also content is both invest way, And our need refresh succeed that our going is the to our to of tech in on make sure thoughtfully retention need to rate two. we stack global the standpoint, and it thoughtful that So done sure marketing do strategy still start make a to, and looking we as a that to and expansion. a

thank Great, you.

Thank you.

Thanks.

Seibert you. time. turn like no the Nick now questions back I'm any showing And to over to for this closing remarks. call Thank I would further at

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

today. Ladies your conclude that participation. for and you for conference does gentlemen, our Thank

now may You disconnect.