AMC Networks Inc. (NASDAQ:AMCX) Q3 2017 Earnings Conference Call Transcript

Nov 02, 2017 • 11:00 am ET

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AMC Networks Inc. (NASDAQ:AMCX) Q3 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the AMC Networks Third Quarter Earnings Release Conference Call.

(Operator Instructions)

It is now my pleasure to turn the call over to Seth Zaslow, Senior Vice President, Investor Relations. Please go ahead, sir.

Executive
Seth Zaslow

Thank you. Good morning, and welcome to the AMC Networks Third Quarter 2017 Earnings Conference Call. Joining us this morning are members of our executive team: Josh Sapan, President and Chief Executive Officer; Ed Carroll, Chief Operating Officer; and Sean Sullivan, Chief Financial Officer.

Following a discussion of the Company's third quarter 2017 results, we will open the call for questions. If you don't have a copy of today's earnings release, it is available on our website at amcnetworks.com. This call can also be accessed via our website.

(Forward-Looking Cautionary Statements)

Further, we will discuss non-GAAP financial information. We believe the presentation of non-GAAP results provides you with useful supplemental information concerning the Company's ongoing operations and is appropriate in your evaluation of the Company's performance. For further details, please refer to the press release and related footnotes for GAAP information and a reconciliation of GAAP to non-GAAP information, which we'll refer to on this call.

With that, I would now like to turn the call over to Josh.

Executive
Josh Sapan

Thank you, Seth, and good morning, everyone. AMC Networks delivered strong financial performance in the third quarter, and we're pleased to say we are on track to meet our 2017 full year financial targets of total Company revenue and adjusted operating income growth. Our CFO, Sean Sullivan, will address our financial results in more detail later on in the call.

Our solid third quarter results reflect the consistent execution of our long-term strategy of investing in high-quality immersive content. Our results highlight growing demand for our content among traditional distributors, virtual MVPDs, advertisers and consumers, and our ability to monetize demand for our content through new revenue streams.

AMC Networks is, we think, better positioned than we've ever been to successfully navigate the evolving changes in consumer viewing habits, and we see several indicators of the strength and vitality of our long-term approach.

One of our biggest strengths relates to what we think is a preferred position we hold within the evolving and diversifying cable ecosystem. This position is made possible by the combination of our commitment to creating top-tier content and being the right size at a very attractive price. It's become evident in recent months that having a sprawling portfolio of channels may not be the best approach to the new world we're facing. We resisted that temptation years ago to expand in size to 10, 15 or 20 networks. Instead, we focused on investing in great content and a very limited number of strong brands. Today, we enjoy a stable affiliate revenue outlook and our relationship with our traditional distribution partners has, in many respects, never been stronger or more expansive.

We're very pleased with the recent debut of AMC Premiere, our new commercial-free upgrade