Bryan Kraft

Bryan Kraft inquired about the financial performance of the Las Vegas Grand Prix in 2025, specifically regarding revenue versus EBITDA growth driven by cost savings, and the opportunities for top-line and bottom-line growth in 2026, including any changes in approach or ticketing.

Answer

Stefano Domenicali, President and CEO, Formula One Group, noted strong progress, improved ticketing, new community dynamics, and reduced event building costs. Brian Wendling, CAO and Principal Financial Officer, clarified that revenue growth was seen across sponsorship and hospitality, with significant cost savings leading to incremental profitability, confirming continued growth opportunities for the event.

Bryan Kraft asked for an assessment of the Las Vegas Grand Prix's financial performance, noting that 2025 appeared to show significant incremental EBITDA driven by cost savings rather than top-line growth. He sought insight into 2026 growth opportunities for both revenue and profitability, and any planned changes in event approach or ticketing strategy.

Answer

F1 President and CEO Stefano Domenicali highlighted the "incredible strong progress" of the Las Vegas Grand Prix, attributing success to ticketing propositions and new dynamics with the community, which will positively impact the PNL and reduce event building costs. CAO and Principal Financial Officer Brian Wendling clarified that Vegas did see revenue growth, particularly in sponsorship and hospitality, though not all reflected in the race promotion line. He confirmed significant incremental profitability in 2025 due to increased cost savings and expressed excitement for continued growth.

Asked about the possibility of a pan-Americas media rights deal, how the rise of streaming affects partner valuation, and sought confirmation that Las Vegas ticket revenue would be down year-over-year.

Answer

While a pan-Americas deal would be interesting, there are no other huge renewals that make it a logical or economically significant bundle. Regarding streaming, it will be a major component of future rights packages, and they will consider how a partner's linear and streaming offerings interact with F1's own F1 TV product. For Las Vegas, aggregate ticket revenue will be down from the original Q1 budget, but costs have also been reduced, and the focus is on profitability and the event's broader benefits to the F1 ecosystem.

Bryan Kraft inquired about the video games pipeline, including the evolving strategy, upcoming 2026 releases, and directional color on the 2026 EBITDA contribution relative to 2025. He also asked for more detail on advertising improvement, distinguishing between domestic advertising (excluding sports) and international performance.

Answer

CEO and President of Global Streaming and Games JB Perrette explained that 2025 was a 'reset' year for games, focusing on proven studios and IPs. He indicated 2026 would be similar to 2025, with significant returns expected in 2027-2028 from major franchises. Key 2026 releases include a LEGO Batman series from TT Games and 'Game of Thrones: Dragonfire' for mobile. CFO Gunnar Wiedenfels noted that the U.S. ad market was consistent, but WBD performed better sequentially despite NBA headwinds, driven by the new upfront, scatter premiums, and strong audience delivery across sports (MLB, NHL), CNN, and general entertainment. International ad sales outperformed the U.S., with EMEA showing stability and potential growth into 2026.

Bryan Kraft asked for more details on the video games pipeline and evolving strategy, including 2026 releases and directional color on 2026 EBITDA contribution relative to 2025. He also requested more information on advertising improvement, distinguishing between domestic (excluding sports) and international trends.

Answer

JB Perrette, CEO and President of Global Streaming and Games, explained that 2025 was a reset year for games, focusing on proven studios and IPs. He noted 2026 would be similar to 2025, with significant returns expected in 2027-2028 from major franchises. 2026 releases include a LEGO Batman series (May) and the mobile game Game of Thrones: Dragonfire (summer). CFO Gunnar Wiedenfels stated that the U.S. ad market was consistent, but WBD outperformed, even after NBA headwinds, driven by the new upfront, scatter premiums, and strong audience delivery across sports (ex-NBA), CNN, and general entertainment. International ad sales outperformed the U.S., with EMEA showing stability and potential growth into 2026.

Bryan Kraft inquired about the company's progress in reducing streaming churn and the status of its efforts to convert unauthorized account sharers into paying customers.

Answer

CEO & President of Global Streaming and Games, JB Perrette, described the password sharing crackdown as being in the 'first inning,' with more aggressive enforcement starting in September and benefits expected in Q4 and 2026. He noted churn is being addressed through bundles, a more consistent 52-week content slate, and ongoing product enhancements.

Bryan Kraft asked for an update on efforts to reduce churn for HBO Max and the progress of the crackdown on unauthorized account sharing, including its potential impact.

Answer

Global Streaming CEO JB Perrette stated the password sharing initiative is in the 'first inning,' with more aggressive enforcement starting in September and financial benefits expected in Q4 and 2026. He noted churn is being addressed through bundles, a more consistent 52-week content slate, and product enhancements, with positive trends emerging but more work to be done.

Bryan Kraft inquired about the key factors behind HBO's consistent success with hit shows, how the Max platform is resonating with younger demographics, and how user engagement time on Max compares across different global markets.

Answer

President & CEO David Zaslav attributed HBO's success to its talented, long-tenured creative team and a focus on 'quality, not quantity,' which creates cultural moments. CEO & President, Global Streaming and Games, JB Perrette stated that Max performs well with younger demographics due to culturally relevant shows and that engagement is highest in Latin America, followed by the U.S. and Europe, with Asia Pacific trailing due to a more limited content mix.

Bryan Kraft asked about the anticipated role of price increases as a D2C revenue driver and the company's current pricing power. He also inquired about opportunities to lower costs in the linear networks business to mitigate secular revenue declines.

Answer

CEO of Global Streaming JB Perrette noted that past price hikes saw lower-than-expected churn, and the upcoming password-sharing crackdown will act as a form of price increase. CFO Gunnar Wiedenfels addressed linear costs, stating that while discipline and structural savings will continue, they won't fully offset revenue pressures, especially with new investments in sports rights.

Bryan Kraft questioned AST SpaceMobile's confidence in achieving five launches by the end of Q1 2026 and 60 satellites by the end of 2026, given recent timeline compressions. He also asked if the EU satellite constellation is incremental to the existing plan and about potential involvement in the IRIS2 mandate.

Answer

Abel Avellan, Chairman and CEO, expressed high confidence in the launch campaign, citing 40 satellites built by early Q2 2026 and a manufacturing pace of six satellites per month. He clarified that the EU satellite constellation is part of the existing plan, not incremental. Scott Wisniewski, President and Chief Strategy Officer, declined to comment on specific new contract awards like IRIS2 but noted the company's strong positioning for such opportunities due to its technology and ecosystem.

Bryan Kraft from Deutsche Bank questioned AST SpaceMobile's confidence in achieving its launch timing guidance of five launches by the end of Q1 2026 and 60 satellites by the end of 2026, given recent delays. He also asked if the EU satellite constellation announcement was incremental to the existing plan, its timing, CapEx/funding implications, and if AST SpaceMobile was involved in the IRIS2 mandate in Europe.

Answer

Scott Wisniewski, President and Chief Strategy Officer, and Abel Avellan, Chairman and CEO, expressed high confidence in the launch campaign, citing 40 satellites built by early Q2 2026 and a manufacturing pace of six satellites per month. They confirmed that the satellites for the European constellation are part of the existing plan, not incremental. They declined to comment on specific new contract awards like IRIS2 but noted their strong positioning for such opportunities.

Bryan Kraft of Deutsche Bank asked if the first Block II satellite launch (FM1) is on the critical path for subsequent launches, requiring a testing period. He also sought details on what the initial "nationwide intermittent service" would look like and whether it would be a paid service or a promotional tool.

Answer

Founder, Chairman & CEO Abel Avellan clarified that the FM1 launch is not on the critical path and does not condition other launches, which are scheduled independently. Regarding the intermittent service, he explained that service persistence will grow as more satellites are added and that the commercial go-to-market strategy, including pricing, will be coordinated and announced jointly with telco partners.

Bryan Kraft from Deutsche Bank asked for details on the first five planned launches, including the number of satellites and providers, and questioned the company's competitive moat against potential rivals using smaller satellites.

Answer

Executive Scott Wisniewski confirmed a multi-launch provider strategy, with the first launch carrying one satellite and subsequent launches ramping up. CEO Abel Avellan added that launch vehicles can carry between 3 to 8 satellites. Regarding competition, Abel Avellan asserted that ASTS's moat is its proven broadband capability (voice, data, video), which is physically beyond what smaller satellites can offer. He emphasized their differentiated, dual-use technology and access to billions of subscribers via MNO partners as key advantages.

Bryan Kraft of Deutsche Bank asked about the satellite launch pacing for 2025-2026, the cost per satellite, the path to free cash flow positivity, and the strategic rationale for pursuing quasi-government funding.

Answer

CEO Abel Avellan confirmed they have secured launches for 60 satellites and expect a launch cadence of one every 45 days later in the year, while reaffirming the cost-per-satellite guidance. He also stated the company expects to reach operating cash flow positivity with around 25 satellites. CFO Andrew Johnson clarified this is on an operating basis, separate from flexible CapEx. Executive Scott Wisniewski added that the quasi-government funding is a long-term, prudent strategy to maintain liquidity and access an attractive capital market.

Bryan Kraft from Deutsche Bank asked about the timeline for testing the five recently launched satellites and putting them into commercial service. He also requested an update on the pipeline and activity level for signing new commercial agreements with Mobile Network Operators (MNOs).

Answer

Chairman and CEO Abel Avellan stated the five satellites are already operational and the company has filed for Special Temporary Authority (STA) with the FCC to begin beta services in the U.S. imminently. Executive Scott Wisniewski added that following the definitive agreement with AT&T, they are working on similar dense agreements with other large partners. He noted that commercial hiring has increased due to strong interest and a healthy pipeline of potential agreements with their 45+ existing partners and new ones.

Bryan Kraft asked if there would be a tax benefit from the impairment charge, whether this benefit is included in the $7 billion to $10 billion liability range, the optimal timing for selling paired AWS-3 licenses relative to the auction, plans for settling convertible notes (cash or stock), and Charlie Ergen's latest thoughts on a potential DBS merger with DIRECTV.

Answer

Paul Gaske, COO of EchoStar, confirmed that some costs related to the impairment charge have already been deducted, but other costs will provide a benefit, which is included in the $7 billion to $10 billion range. Charlie Ergen, CEO and Chairman of EchoStar, stated that the company is working with the FCC on the AWS-3 auction timing and that a decision on convertible notes settlement would be made closer to the call date. Hamid Akhavan, President and CEO of EchoStar Capital, acknowledged the long-standing idea of a DISH and DIRECTV combination as a natural fit for value creation, but offered no specific predictions.

Bryan Kraft inquired if the tax benefit from the impairment charge would be excluded from the previously cited $7 billion-$10 billion tax and decommissioning range. He also asked about the optimal timing for selling the paired AWS-3 licenses relative to the upcoming auction, the company's plans for settling converts (cash or stock), and Charlie Ergen's latest views on a potential DBS merger with DirecTV.

Answer

Paul Gaske, COO of EchoStar, confirmed that the tax benefit from the impairment charge is included in the $7 billion-$10 billion range, noting that some items were already deducted. Charlie Ergen, CEO and Chairman of EchoStar, stated that the company is working with the FCC on AWS-3 auction timing and that a decision on converts settlement (cash or stock) would be made closer to the call date. Hamid Akhavan, President and CEO of EchoStar Capital, acknowledged the historical "natural combination" of DISH and DirecTV, stating that EchoStar Capital would always look at inorganic opportunities for value creation, despite past challenges.

Bryan Kraft sought clarification on the LEO constellation's funding, asking about the timeline for the $5 billion investment, the service capabilities at launch in 2028, and the specifics of the revenue model with carrier partners.

Answer

Director, President & CEO Hamid Akhavan clarified the $5 billion is the total peak funding for the project over several years, with the announced $1.3 billion being one component for manufacturing. He stated the service will offer a full mobile experience (text, voice, video) and will be sold via a wholesale, collaborative model with carriers, not direct-to-consumer.

Bryan Kraft from Deutsche Bank asked about the source of new Boost Mobile customers, the potential use of third-party financing for handsets, and whether the company would consider partnering on spectrum build-out or selling/leasing spectrum assets. He also asked for the prepaid versus postpaid mix of new subscribers.

Answer

CEO Hamid Akhavan stated that they are attracting quality subscribers from all competitors, evidenced by the highest prepaid ARPU in the market. CFO Paul Orban noted that while they have access to third-party device financing, they currently prefer using their own cash. Hamid Akhavan declined to comment on specific spectrum transactions but said all options are available. He revealed that roughly one-third of Q1 net adds were postpaid but stressed the company is moving to eliminate that distinction.

Bryan Kraft asked about the company's financial runway to pursue growth opportunities like wireless and direct-to-device, considering upcoming debt maturities. He also inquired if the company is still actively working to improve its balance sheet and extend maturities.

Answer

President and CEO Hamid Akhavan affirmed that the company is not currently forgoing opportunities due to capital limitations and is focused on long-term financial health. He stated that EchoStar is cognizant of its future obligations and intends to remain proactive in managing its financial needs and creating shareholder value, similar to its actions in 2024.

Bryan Kraft inquired about the specific drivers of the improved video subscriber trend, asking whether it was due to lower churn, higher new customer take rates, or a combination of factors.

Answer

President & CEO Chris Winfrey confirmed the improvement was driven by a combination of higher video sales at new Internet acquisition, more upgrades from existing customers, and lower churn. He noted plans to more actively market the 'seamless entertainment' bundle and use the platform to upgrade customers from skinny bundles to full packages.

Bryan Kraft asked about fiber competition, specifically seeking details on broadband penetration levels in mature fiber markets and whether the market share is stabilizing or if fiber competitors are still gaining.

Answer

CEO Chris Winfrey asserted that the impact from fiber overbuilds has been consistent for years and is not the primary driver of recent market dynamics. He stated explicitly that Charter does not see a 50-50 market split in its footprint and maintains a majority share even in markets with long-standing fiber competition.

Bryan Kraft from Deutsche Bank AG asked how the current elevated mobile churn environment might impact AT&T's ability to expand mobility margins in 2026 and beyond. He also inquired about any macro trends affecting consumers or businesses, including potential impacts from federal government spending cuts.

Answer

CFO Pascal Desroches explained that while growth-related spending is lumpy, the underlying operating leverage in the mobility business remains strong, and he expects margins to continue performing well. CEO John Stankey added that from a macro perspective, pro-investment policy tailwinds are the strongest he has seen in his career. He acknowledged some softness from shifts in public sector spending but characterized it as manageable, noting that removing tariff uncertainty would be like 'jet fuel' for the positive environment.

Bryan Kraft of Deutsche Bank sought clarification on the churn outlook, the drivers behind it, the momentum in gross adds, and whether customer switching might also be pulled forward due to tariff concerns.

Answer

CFO Pascal Desroches confirmed that 2023 serves as a good benchmark for 2025 churn expectations due to a similar level of contract roll-offs. CEO John Stankey added that AT&T plans to continue growing its customer base by focusing on high-value, converged customers, where higher lifetime values (LTVs) justify the acquisition investment. He noted this focus on converged accounts is a key driver of their growth strategy.

Bryan Kraft of Deutsche Bank inquired how recent changes to the BEAD (Broadband Equity, Access, and Deployment) program might affect Verizon's opportunity to participate and invest in footprint expansion.

Answer

Chairman and CEO Hans Vestberg acknowledged that recent rule changes have opened some new opportunities. However, he stated that Verizon's overall strategy remains unchanged: the company will bid for BEAD funding in areas where it can achieve a good return on investment with the government subsidy. He noted they are currently in the rebidding process.

Bryan Kraft asked if the gross add strength in March and April was due to an industry-wide pickup or market share gains from new offers, and requested details on the MDU solution for fixed wireless.

Answer

CEO Hans Vestberg attributed the recent momentum directly to Verizon's new offerings, not a broader industry shift. He confirmed the MDU solution has launched in over 15 markets and will ramp up throughout the year. Consumer Group CEO Sowmyanarayan Sampath added that the Verizon Value Guarantee is resonating well with new and existing customers, and highlighted strong performance in the prepaid business and across the company's brand portfolio.

Bryan Kraft questioned how recent race promotion renewals aligned with growth expectations and asked for the media rights revenue outlook for 2025.

Answer

Formula One CEO Stefano Domenicali stated that long-term race promotion agreements are being secured in key markets, and this revenue stream continues to grow due to high demand from potential host countries and innovation from promoters. He believes the stream will remain strong. For 2025 media rights, CFO Brian Wendling noted that growth will be driven primarily by contractual uplifts, standard renewals, and continued growth in F1 TV, including its new premium tier.

Bryan Kraft of Deutsche Bank inquired if recent race promotion renewals met expectations for revenue growth. He also asked for the broad outlook on media rights revenue growth in 2025 compared to 2024.

Answer

Formula One CEO Stefano Domenicali affirmed that race promotion remains a strong growth stream, driven by high demand from potential host countries and promoters investing in fan experiences. On 2025 media rights, CFO Brian Wendling stated that growth will be driven primarily by standard contractual uplifts, renewals, and continued growth in F1 TV, including its new premium tier. He declined to specify if the growth rate would accelerate from 2024.

Bryan Kraft asked about the expected trend for CapEx after 2025 and requested details on the LightPath hyperscaler business, including contract terms, revenue recognition, and access to LightPath's cash flow.

Answer

CEO Dennis Mathew noted optimistic trends in capital efficiency but provided no specific guidance beyond the 2025 target of $1.3 billion. Regarding the hyperscaler business, he declined to share specific contract details but confirmed the deals are often self-funded through the contract itself, with revenue recognized on an amortized basis. He also stated that for now, LightPath's cash is being retained within that entity to fund its operations and growth.

Bryan Kraft sought to understand the drivers behind the fiscal '26 low single-digit operating income growth guidance for sports, given the upcoming NBA rights cost increase. He also asked for the outlook on Disney+ subscriber growth for the second half of the year.

Answer

CFO Hugh Johnston explained that the fiscal '26 ESPN guidance incorporates multiple factors, including a strong ad market, disciplined cost management, and strategic decisions on future rights deals. For DTC subscribers, he expects growth for the full year, with an acceleration in the second half driven by the paid sharing crackdown and a strong film slate. CEO Bob Iger added that he is bullish on sub growth due to tech enhancements and bundling.

Bryan Kraft asked if the softness in domestic parks is now behind them and what caused new softness in international parks during Q4. He also questioned if the strong international Disney+ subscriber growth was due to a one-time wholesale deal or seasonality.

Answer

CEO Robert Iger confirmed that the domestic consumer is strengthening. He attributed the Q4 international park softness to two temporary factors: the Olympics in Paris, which typically impacts attendance, and some consumer weakness in Shanghai. He clarified that the strong international subscriber growth was from 'good solid additions' and not driven by any chunky, one-time deals.

Bryan Kraft from Deutsche Bank asked how the new music label deals contribute to margin expansion and also invited new CFO Christian Luiga to share his initial impressions of the company.

Answer

CEO Daniel Ek described the label relationship as a 'win-win,' stating that as Spotify achieves greater scale, its margins and profits improve, which benefits the entire ecosystem. CFO Christian Luiga shared that he is impressed by the company's strong focus on creating value through technology and its ability to maintain discipline, and that his own focus is on improving scalability.

Bryan Kraft inquired about the strategic path forward for Paramount+ in international markets and asked for a quantification of the revenue recognized from a prior-period international ad sales under-reporting.

Answer

Co-CEO Chris McCarthy explained that the international strategy is a market-by-market approach, utilizing owned-and-operated services, hard bundles, or licensing to maximize content value. CFO Naveen Chopra quantified the ad revenue true-up at approximately $50 million and stated that the Q4 forecast assumes no further adjustments.