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    Aaron Watts

    Senior Fixed Income Analyst at Deutsche Bank

    Aaron Watts is a Senior Fixed Income Analyst at Deutsche Bank, specializing in covering the media and communications sectors with a particular focus on companies such as iHeartMedia. With a reputation for in-depth credit analysis, he is known among institutional clients for his expertise in high-yield and leveraged finance instruments across the media industry. Watts has developed his career in fixed income research, advancing to his current senior role at Deutsche Bank where he advises on debt capital market trends and corporate credit performance for top-tier clients. He holds standard professional securities credentials required for fixed income research, reflecting his experience and reliability as a key resource for Deutsche Bank’s institutional investor base.

    Aaron Watts's questions to Clear Channel Outdoor Holdings (CCO) leadership

    Aaron Watts's questions to Clear Channel Outdoor Holdings (CCO) leadership • Q2 2025

    Question

    Aaron Watts from Deutsche Bank inquired about the Airports segment's strong margins, asking what factors are supporting them and how they are expected to progress going forward. He also asked a housekeeping question about whether the 'big beautiful bill' would materially benefit the company's cash flow through interest deductibility or tax depreciation changes.

    Answer

    CFO David Saylor explained that strong airport margins were driven by excellent top-line growth, some residual site lease relief, and strong performance in premium verticals like banking and technology. He guided for airport margins to be in the low 20% range for the second half of the year. Regarding the tax bill, Saylor stated the impact is not significant for Clear Channel, as while it helps with interest deductibility and bonus depreciation, the company is not a material cash taxpayer.

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    Aaron Watts's questions to Clear Channel Outdoor Holdings (CCO) leadership • Q2 2025

    Question

    Aaron Watts from Deutsche Bank asked about the factors driving elevated margins in the Airports segment and their expected progression. He also inquired about any material cash flow benefits from recent tax legislation, specifically regarding interest deductibility and depreciation.

    Answer

    CFO David Sailer credited the strong airport margins to robust top-line growth and some residual site lease relief, guiding for margins in the low 20% range for the second half of the year. Regarding the tax bill, he noted the impact would not be huge, as it provides a slight benefit to interest deductibility and depreciation, but the company is not a material cash taxpayer at present.

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    Aaron Watts's questions to Clear Channel Outdoor Holdings (CCO) leadership • Q2 2025

    Question

    Aaron Watts from Deutsche Bank AG asked about the factors supporting the elevated margins in the Airports segment and their expected progression. He also inquired about any material cash flow benefits from recent tax legislation regarding interest deductibility or depreciation.

    Answer

    CFO David Sailer credited the strong airport margins to robust top-line growth, some site lease relief, and strong performance in premium verticals like banking and technology, projecting margins in the low 20% range for the second half of the year. Regarding the tax bill, Mr. Sailer stated the impact is not material, as while there are slight benefits, the company is not a significant cash taxpayer at the moment.

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    Aaron Watts's questions to Clear Channel Outdoor Holdings (CCO) leadership • Q1 2025

    Question

    Aaron Watts of Deutsche Bank AG requested clarification on the Americas segment growth, asking for the specific impact of the new MTA contract on the Q1 results and the Q2 guidance to better understand the underlying market strength.

    Answer

    CEO Scott Wells explained that the MTA contract contributes a 'couple of points' to full-year growth. He cautioned against over-analyzing the Q1 headline growth figure due to unique factors in February, suggesting that the combined performance of January and March was more indicative of the underlying market strength.

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    Aaron Watts's questions to Clear Channel Outdoor Holdings (CCO) leadership • Q3 2024

    Question

    Aaron Watts from Deutsche Bank inquired about current advertising cancellation trends, which have historically been a leading indicator of downturns, and asked for early insights into 2025 client commitments. He also questioned if increased ad inventory from streaming services is creating headwinds for the national business.

    Answer

    CEO Scott Wells confirmed there has been no uptick in cancellation activity and that early conversations for 2025 renewals are encouraging, with some clients considering expanded commitments. On the national business, Wells acknowledged the competitive landscape but emphasized that the onus is on Clear Channel to prove out-of-home's value in amplifying other media. He noted that while the U.S. sees less TV budget allocation compared to other countries, which could be due to streaming, the company's focus is on proactive selling into new verticals and demonstrating ROI.

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    Aaron Watts's questions to URBAN ONE (UONE) leadership

    Aaron Watts's questions to URBAN ONE (UONE) leadership • Q1 2025

    Question

    Aaron Watts from Deutsche Bank asked about the radio advertising environment, including the potential for a quick rebound, the performance of local versus national advertisers, and growth opportunities in digital audio and podcasting.

    Answer

    Executive Alfred Liggins expressed doubt about a significant ad rebound in the current year due to economic uncertainty, noting that national advertising is the primary source of weakness while local ads are more stable. Liggins identified improving local digital sales as a key growth opportunity. Executive Peter Thompson clarified that the local-to-national radio ad revenue ratio is approximately 2-to-1.

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    Aaron Watts's questions to iHeartMedia (IHRT) leadership

    Aaron Watts's questions to iHeartMedia (IHRT) leadership • Q1 2025

    Question

    Aaron Watts sought clarification on the Q1 cost savings, asking if the $27 million was a run rate and about the cadence for the remainder of the year. He also asked about further cost-cutting potential and the impact of Nielsen's updated ratings methodology.

    Answer

    CFO Rich Bressler clarified the $27 million was the actual Q1 impact, not a run rate, and projected roughly $40 million in savings for each of the next three quarters. He affirmed the company continuously seeks efficiencies through technology and AI. CEO Bob Pittman responded that they are excited about Nielsen's update because more accurate listening data improves their positioning in media mix models, ensuring they receive proper credit for ad effectiveness.

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    Aaron Watts's questions to GRAY MEDIA (GTN) leadership

    Aaron Watts's questions to GRAY MEDIA (GTN) leadership • Q1 2025

    Question

    Aaron Watts asked for clarification on the potential margin lift from creating new duopolies and questioned the advertising outlook, asking whether the market is seeing cancellations or just booking hesitancy, and what verticals might show optimism in the second half of the year.

    Answer

    Chief Legal and Development Officer Kevin Latek explained that margin uplift from duopolies varies significantly and cannot be quantified with a single number. President and Co-CEO Patrick LaPlatney clarified that advertisers are showing hesitancy rather than cancellations. He identified services categories like legal and health, along with surprisingly strong political spending, as reasons for optimism. COO Sandy Breland also highlighted growth in new local direct business.

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    Aaron Watts's questions to GRAY MEDIA (GTN) leadership • Q4 2024

    Question

    Aaron Watts asked about the outlook for core advertising, questioning if it could achieve full-year growth in 2025 and seeking a breakdown of the flat Q1 expense guidance, including the impact of cost savings versus new costs like sports rights.

    Answer

    President and Co-CEO Pat LaPlatney expressed cautious optimism for full-year core ad growth, citing encouraging Q2 pacing. Chairman and CEO Hilton Howell added that weakness in the auto sector due to tariff uncertainty is a major factor that should eventually resolve. CFO Jeff Gignac explained that 66-75% of the announced $60 million in cost savings will flow through in Q1, with offsetting factors including ordinary course salary increases for employees. Gignac stated the goal is to keep full-year expense growth below inflation.

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    Aaron Watts's questions to GRAY MEDIA (GTN) leadership • Q3 2024

    Question

    Aaron Watts of Deutsche Bank asked for details on the Q4 core advertising guidance, the timing and scope of the announced $60 million in cost savings, and the company's capital allocation strategy regarding debt reduction and the dividend.

    Answer

    Patrick LaPlatney, Co-CEO & President, attributed the Q4 core ad outlook to political crowd-out and the shift in SEC football rights but noted some recent positive signs. Jeff Gignac, EVP & CFO, stated the cost savings are largely implemented and will 'bend the curve' on expense growth. Gignac confirmed that debt reduction remains the top priority, pursued through open-market repurchases, and that the dividend is reviewed quarterly.

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    Aaron Watts's questions to NEXSTAR MEDIA GROUP (NXST) leadership

    Aaron Watts's questions to NEXSTAR MEDIA GROUP (NXST) leadership • Q1 2025

    Question

    Aaron Watts asked about Nexstar's M&A priorities, specifically comparing national footprint expansion, in-market duopolies, and spectrum holdings, and inquired about the margin lift from creating a new duopoly.

    Answer

    Chairman and CEO Perry Sook emphasized that the primary focus is on accretive acquisitions that are more compelling than stock buybacks, but noted that growing the national footprint holds more strategic importance. He estimated the margin lift from a new duopoly could be 20-25 points, depending on the station combination, and clarified the recent Cleveland acquisition's accretion is mainly from distribution economics.

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    Aaron Watts's questions to NEXSTAR MEDIA GROUP (NXST) leadership • Q4 2024

    Question

    Aaron Watts of Deutsche Bank asked how high the company would be willing to take its leverage ratio to participate in potential industry consolidation following deregulation.

    Answer

    CFO Lee Ann Gliha responded that Nexstar is not looking to 'max out on leverage' or overextend itself. She emphasized that any decision would be made on a case-by-case basis, but the company does not plan to become highly leveraged, consistent with its historical approach to managing the balance sheet.

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    Aaron Watts's questions to Sinclair (SBGI) leadership

    Aaron Watts's questions to Sinclair (SBGI) leadership • Q1 2025

    Question

    Aaron Watts from Deutsche Bank inquired about core advertising trends, specifically in the auto category, differences between national and local markets, and capital allocation priorities for the television group.

    Answer

    COO Rob Weisbord noted a trend toward auto leases over outright buys but has not yet seen a pre-tariff sales bump, adding that local and national ad markets are performing in parallel. EVP and CFO Lucy Rutishauser confirmed that deleveraging the local media group remains a top priority, evidenced by the recent repurchase of $66 million in debt at a discount.

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    Aaron Watts's questions to Sinclair (SBGI) leadership • Q4 2024

    Question

    Aaron Watts of Deutsche Bank questioned if Sinclair could achieve positive full-year core advertising growth in 2025 despite guiding Q1 down, and asked for a postmortem on 2024 political ad performance and Sinclair's competitive positioning against digital and CTV.

    Answer

    COO Rob Weisbord affirmed that Sinclair believes it can achieve positive core ad growth for the full year, driven by its new 'AMP' cross-platform sales strategy and an expected recovery in the automotive vertical. CEO Christopher Ripley added that business firmed up as Q1 progressed. On political advertising, Ripley and Weisbord highlighted broadcast TV's success, noting it was the only medium to grow ad dollars versus 2020 and that its strong ROI and local reach position it well for future election cycles.

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    Aaron Watts's questions to Sinclair (SBGI) leadership • Q3 2024

    Question

    Aaron Watts of Deutsche Bank asked about the potential impact of the recent NBA TV rights deal on network compensation fees from affiliates, especially with Sinclair's NBC renewal pending. He also asked for Sinclair's view on the announced DIRECTV and DISH merger and whether after-acquired clauses would affect its distribution fees.

    Answer

    President and CEO Christopher Ripley responded that he does not expect the NBA deal to materially change the trend of declining increases in reverse retransmission fees, similar to what occurred after the last NFL rights renewal. Regarding the DIRECTV-DISH merger, he views a healthier combined company as a positive for the industry but noted potential regulatory scrutiny in some rural markets. He stated that Sinclair does not anticipate any impact on its retransmission fees post-closing from the deal.

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    Aaron Watts's questions to CUMULUS MEDIA (CMLS) leadership

    Aaron Watts's questions to CUMULUS MEDIA (CMLS) leadership • Q4 2024

    Question

    Aaron Watts asked for an update on broadcast spot advertising sentiment moving through Q1 and into Q2, whether the ad pullback was radio-specific or a broader trend, and for the company's perspective on media deregulation and its potential participation.

    Answer

    CFO Francisco Lopez-Balboa explained that Q1 weakness continues due to advertiser uncertainty around tariffs and interest rates, and a change in those conditions is needed for improvement. He and CEO Mary Berner asserted the pullback is broad-based, not radio-specific, with Berner noting the large auto category's issues are macro-related. Lopez-Balboa stated the company is supportive of deregulation, as it would likely increase deal activity and benefit the industry, but could not speculate on Cumulus's specific role.

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