AMC Global Media Inc. Q3 FY2024 earnings call

• Kristin Dolan highlighted progress in generating free cash flow, with year-to-date free cash flow at $293 million and on track for ~$0.5 billion cumulative free cash flow over two years. • Focus on three strategic pillars: programming, partnerships, and profitability. • Partnerships: Renewed major affiliate agreements like with Charter, innovative partnership with Netflix for AMC Collection, growth in FAST channels with 18 channels on 12 platforms, plan to launch ad supported versions of other streaming services, and promotions with Verizon. • Programming: AMC+ setting viewership records, strong performance of targeted services with retention improvements, successful content licensing driven by high-quality programming. • Acquired 100% of BBC America from BBC Studios for $42 million, consolidating it fully going forward.

Domestic Operations revenue decreased 2% to $530 million. Subscription revenue of $316 million decreased 5% due to linear subscriber declines, but streaming revenue grew 7% to contribute to a total of $316 million, with 11.8 million streaming subs at quarter-end. Content licensing revenue in domestic ops increased 31% to $81 million, driven by timing and availability of deliveries like those related to the AMC Collection on Netflix. Advertising revenue in domestic ops declined 10% to $133 million due to lower linear ratings. International revenue for the third quarter was $74 million, down 6%, with international advertising revenue up 16% driven by new AVOD offerings.

• Expect year-over-year free cash flow growth in 2024 and cumulative free cash flow of approximately $0.5 billion by the end of 2025. • Anticipate total revenue of approximately $2.4 billion for the full year. • Project consolidated adjusted operating income (AOI) for 2024 to be between $550 million and $575 million, with focuses on streaming and digital advertising growth and prudent expense management.

Q: Thomas Yeh asked about the ad supported tier for streaming and FAST channels inventory.

A: Kristin Dolan referred to Kim Kelleher who discussed early growth of ad supported streaming, focus on first sales position across platform partnerships, and digital revenue growth.

Q: Steven Cahall inquired about value of new seasons on AMC+ and capital allocation.

A: Kristin Dolan and Dan McDermott talked about new seasons driving subscriber uptake on AMC+, Dan McDermott discussed strategic use of Walking Dead IP, and Patrick O'Connell spoke about financial flexibility and focus on free cash flow generation.

Q: David Joyce asked about content licensing revenue recurrence and SG&A expenses.

A: Kristin Dolan and Kim Kelleher mentioned broad content distribution and opportunistic licensing globally, Patrick O'Connell explained SG&A increase was due to tactical marketing spend.

Q: Charles Wilber asked about Charter renewal revenue recognition and fourth quarter free cash flow.

A: Kristin Dolan and Patrick O'Connell discussed integration of streaming and linear products in renewals and noted free cash flow generation lumpiness with focus on achieving two-year guidance