MSG Networks Inc. (NYSE:MSGN) Q4 2019 Earnings Conference Call - Final Transcript
Aug 21, 2019 • 10:00 am ET
Good morning. My name is Christie, and I will be your conference operator today. At this time, I would like to welcome everyone to MSG Networks Fiscal 2019 Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. Thank you.
I would now like to turn the call over to Ari Danes, Investor Relations. Please go ahead, sir.
Thank you, Christie. Good morning, and welcome to MSG Networks fiscal 2019 fourth quarter conference call. The company's President and CEO, Andrea Greenberg, will begin this morning's call with a discussion of the company's operations. This will be followed by a review of financial results of Bret Richter, the company's EVP, Chief Financial Officer and Treasurer. After their prepared remarks, we will open up the call for questions. If you do not have a copy of today's earnings release, it is available in the Investors section of the company's corporate website.
Please take note of the following. Today's discussion may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors.
These include financial community perceptions of the company and its business, operations, financial condition and the industry in which it operates, as well as the factors described in the company's filings with the Securities and Exchange Commission, including the sections entitled Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations contained therein. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call.
Lastly, we will discuss certain non-GAAP financial measures on today's call. On Pages five and six of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income. In addition, on Page eight of the earnings release, we provide a reconciliation of net cash provided by operating activities to free cash flow.
With that, I'll now turn the call over to Andrea.
Thank you, Ari, and good morning. For fiscal 2019, we successfully executed against many of the financial and strategic objectives we established at the beginning of the year. We generated substantial revenue, adjusted operating income and free cash flow; drove double-digit percentage increase in advertising revenue and successfully renewed several affiliate agreements. However, our fourth quarter results reflect a few items that deserve some focus on this call.
Starting with our year-end viewing subscribers. This time last year, MSG Networks has its lowest rate of subscriber decline in five years. Last year's results not only reflected the addition of OTT subscribers but also a reduction in the overall rate of decline of our traditional operators. In fiscal 2019, this