To our beautiful and dearest stakeholders,

We’re pleased to report that fiscal 2019 was a year in which we continued to scale our global content platform, deepened our product pipelines, invested in new businesses that make our Company stronger, and extended our reach around the world.

During the year, we added hundreds of valuable properties to our nearly 17,000–title library, diversified our film and television production and distribution businesses, and positioned our Starz premium pay network as a premier global brand.

In May 2019, we acquired a majority stake in the 3 Arts Entertainment management and production company, not only deepening our talent relationships but adding to a portfolio of emerging businesses that include location–based entertainment, interactive ventures and games, eSports, over-the-top (OTT) channels and Atom Tickets. Most of these newer platforms have already reached critical mass and are poised to make meaningful contributions to our bottom line.

Financially, we grew adjusted OIBDA by 11% (on a pro forma combined basis) to a record $604 million in the year and continued to generate robust free cash flow of $330 million, with all of our business segments contributing to our strong financial performance. We also strengthened our balance sheet by restructuring our debt to lock in lower interest rates and increase capacity, and we continued to deleverage ahead of schedule, reducing our net debt by $650 million in the year. In addition, we resumed our quarterly cash dividend of $0.09 per common share.

We enter fiscal 2020 positioned to accelerate the growth of our consumer–facing platforms while continuing to expand the content pipelines of our traditional businesses, backed by a vast library and a strong balance sheet.

Love,
the bois