New York, NY – November 2, 2020: AMC Networks Inc. (“AMC Networks” or the “Company”) (NASDAQ: AMCX) today reported financial results for the third quarter ended September 30, 2020.

President and Chief Executive Officer Josh Sapan said: “The company delivered solid results in the 3rd quarter and we continue to maintain a strong financial profile, with a solid balance sheet, very good liquidity and healthy levels of free cash flow. AMC Networks is fast becoming the global leader in SVOD services for targeted audiences, with our Acorn TV, Shudder, Sundance Now and UMC services set to exceed 4 million subscribers by year-end, outperforming our expectations. With the addition of our new AMC+ premium SVOD offering, we expect to have 5.0 to 5.5 million total SVOD subscribers, in aggregate, by the end of the year. Our strong content also continues to resonate with viewers, with AMC home to 4 of the top 6 cable dramas in 2020 among adults 25-54, including our newest series in The Walking Dead Universe, The Walking Dead: World Beyond ranking as the #1 freshman cable drama of the year.”

Financial Highlights:

Net revenues of $654 million
Operating income of $139 million; Adjusted Operating Income1 of $185 million
Diluted EPS of $1.17; Adjusted EPS1 of $1.32
Cash Provided by Operating Activities of $219 million and Free Cash Flow1 of $203 million for the three months ended September 30, 2020
8 million shares repurchased for $251 million in October 2020 in connection with the Company’s modified Dutch auction tender offer
Operational Highlights:

The Company continued to make significant progress on its digital initiatives

The Company expects 5.0 million to 5.5 million paid subscribers in aggregate by year-end 2020 for its portfolio of streaming services: including AMC+, Acorn TV, Shudder, Sundance Now, UMC and IFC Films Unlimited.

The Company now expects in excess of 4.0 million paid subscribers in aggregate for its four SVOD services: Acorn TV, Shudder, Sundance Now and UMC by year-end 2020.

The Company significantly expanded the distribution of AMC+, its subscription video on demand bundle, with launches on Amazon Prime and Apple TV platforms

Shudder surpasses 1 million subscribers

The Company announced significant updates on The Walking Dead universe

The Walking Dead will conclude with an expanded two-year eleventh season

The greenlighting of a new original series focused on the popular Daryl Dixon and Carol Peletier characters, which is scheduled to premiere in 2023

The development of a new episodic anthology series called Tales of the Walking Dead
Consolidated Results

Third quarter net revenues decreased 9.0%, or $65 million, to $654 million over the third quarter of 2019. The decrease in net revenues reflected a decrease of 17.3% at National Networks and an increase of 9.0% at International and Other. Operating income was $139 million, a decrease of 17.2%, or $29 million, versus the prior year period. The operating income decrease reflected a decrease of 28.8% at National Networks and an increase of $23 million in operating income at International and Other. Adjusted Operating Income1 was $185 million, a decrease of 15.4%, or $34 million, versus the prior year period. The decrease in adjusted operating income reflected a decrease of 23.6% at National Networks offset by an increase of $14 million at International and Other versus the prior year period.

For the nine months ended September 30, 2020, net revenues decreased 10.6%, or $240 million, to $2.035 billion, operating income decreased 38.1%, or $222 million, to $361 million, and adjusted operating income decreased 14.9%, or $111 million, to $633 million.

Third quarter net income was $62 million ($1.17 per diluted share), compared with $117 million ($2.07 per diluted share) in the prior year period. EPS primarily reflected the decrease in operating income and an increase in income tax expense partially offset by an increase in miscellaneous, net. Third quarter Adjusted EPS1 was $70 million ($1.32 per diluted share), compared with $132 million ($2.33 per diluted share) in the prior year period. The decrease in adjusted EPS primarily related to the decrease in adjusted operating income and an increase in income tax expense partially offset by an increase in miscellaneous, net.

Net income for the nine months ended September 30, 2020 was $145 million ($2.69 per diluted share), compared with $389 million ($6.80 per diluted share) in the prior year period. Adjusted EPS for the nine months ended September 30, 2020 was $279 million ($5.17 per diluted share), compared with $433 million ($7.57 per diluted share) in the prior year period.

For the nine months ended September 30, 2020, net cash provided by operating activities was $644 million, an increase of $244 million versus the prior year period. The increase was primarily the result of a decrease in working capital and tax payments partially offset by a decrease in adjusted operating income. Free Cash Flow1 for the nine months ended September 30, 2020 was $595 million, an increase of $277 million versus the prior year period. The increase primarily reflects the increase in net cash provided by operating activities as well as a decrease in capital expenditures.