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    Aaron Watts • Deutsche Bank AG

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

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

    Question

    Aaron Watts from Deutsche Bank asked about the drivers behind the strong and elevated margins in the Airports segment and how they are expected to progress. He also inquired about any material cash flow benefits from recent tax law changes, specifically regarding interest deductibility or depreciation.

    Answer

    CFO David Sailer explained that strong top-line revenue growth and some residual site lease relief contributed to the robust Airport margins, and he guided for margins to be in the low 20% range for the second half of the year. Regarding tax law, he stated the impact would not be huge but noted a slight benefit from increased interest deductibility and the restoration of 100% bonus depreciation.

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    Aaron Watts's questions to Clear Channel Outdoor Holdings Inc (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 Inc (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 iHeartMedia Inc (IHRT) leadership

    Aaron Watts's questions to iHeartMedia Inc (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 Nexstar Media Group Inc (NXST) leadership

    Aaron Watts's questions to Nexstar Media Group Inc (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 Inc (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 Inc (SBGI) leadership

    Aaron Watts's questions to Sinclair Inc (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 Inc (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 Inc (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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