Eric Handler

Eric Handler inquired about the sustained strong performance of Take-Two's mobile business over the past seven quarters, asking what initiatives are resonating and keeping older games relevant. He also asked for an indication of the percentage of mobile recurrent spending coming from direct-to-consumer channels.

Answer

CEO Strauss Zelnick attributed the mobile success to Zynga's ability to create new hits by fostering top talent, providing strong marketing support, and leveraging a robust balance sheet. He noted a market rebound as a tailwind. Regarding direct-to-consumer, Zelnick stated it's a meaningful but undisclosed percentage, emphasizing its strategic importance for higher revenue share and enhanced margins, supported by a more favorable regulatory environment.

Eric Handler inquired about the drivers behind Take-Two's strong mobile business performance over the past seven quarters, what initiatives are resonating, and the percentage of mobile recurrent spending coming from direct-to-consumer channels.

Answer

CEO Strauss Zelnick attributed mobile success to Zynga's ability to create new hits by fostering top talent, supporting their passions, and effective marketing, alongside a rebounding mobile market. He noted that direct-to-consumer (DTC) is a meaningful growth driver, improving margins, and benefiting from a more favorable regulatory environment, though a specific percentage of mobile recurrent spending from DTC was not disclosed.

Eric Handler asked about the company's success in implementing AI in non-creative aspects of video game development, such as QC or artwork, and how it's being integrated into their development process.

Answer

Strauss Zelnick, Chairman and CEO, clarified that AI, when properly deployed, is positive for creativity by improving toolsets and freeing up creative people from mundane tasks. He noted that the company has seen some efficiencies from AI tools rolled out at the enterprise level, but it's not being used to reduce headcount. Instead, it's an opportunity for talented people to engage in more creative and interesting tasks.

Eric Handler asked about Take-Two's success in implementing AI in non-creative aspects of video game development, such as quality control or artwork, and how it contributes to development, referencing Strauss Zelnick's previous comments on AI and creative processes.

Answer

Strauss Zelnick, Chairman and CEO, clarified that AI, when properly deployed as a technical tool, enhances efficiency and effectiveness, freeing creative people for more innovative tasks. He confirmed seeing some efficiencies from enterprise-level AI tools but stated it's not being used to reduce headcount, rather to enable talented individuals to focus on more creative work, and does not expect a significant immediate cost reduction.

Eric Handler from Roth Capital Partners inquired about the specific drivers behind the significant 48% year-over-year growth in NBA 2K's recurrent consumer spending (RCS).

Answer

President Karl Slatoff explained that the strong performance was not due to a single factor but rather broad-based engagement growth across the game's primary modes, MyCareer and MyTeam. He credited the development team's improved ability to use in-game telemetry to understand player behavior and optimize the experience, stating they believe there is still significant room for future growth.

Eric Handler asked about Take-Two's pricing strategy, specifically the decision to price 'Mafia: The Old Country' at $50/$60 instead of a higher industry price point, and inquired about the $3.6 billion goodwill impairment charge.

Answer

CEO Strauss Zelnick explained that the company employs variable pricing with a focus on delivering more value than the cost to consumers, aiming for mass adoption to drive revenue. CFO Lainie Goldstein stated the partial impairment was a result of updating long-term expectations for one of its reporting units, a standard annual testing procedure, but did not specify which unit.

Eric Handler asked for an update on the profitability timeline for Match Factory and questioned whether the mobile gaming market is becoming bifurcated, favoring only the largest titles.

Answer

CFO Lainie Goldstein confirmed Match Factory is on track to turn profitable by the end of the fiscal year. CEO Strauss Zelnick countered the market bifurcation theory, stating Zynga's portfolio remains broad-based and that opportunity exists beyond the top-tier games, despite slower industry growth and challenges with certain legacy titles.

Eric Handler inquired about the mobile business, asking if its growth is driven by specific hit titles or a broader industry lift, and questioned current trends in user acquisition and the company's reliance on various advertising partners.

Answer

President Karl Slatoff confirmed that the strong performance of Match Factory! and Toon Blast are significant growth drivers. He noted the mobile industry is rewarding new IP and stated that Take-Two utilizes a diverse mix of third-party acquisition channels and its large internal database, not relying solely on one partner.

Eric Handler inquired about the partnerships and marketing segment, specifically the increase in the number of brands sponsoring both UFC and WWE, the overall growth in brand partnerships, and whether the current strategy focuses more on increasing the volume of brands or leveraging pricing.

Answer

Andrew Schleimer, CFO of TKO Group Holdings Inc, confirmed that the strategy involves both increasing brand volume and leveraging pricing. He cited Wingstop as a recent example of a brand advertising across both UFC and WWE, noting a handful of such crossover brands. Mr. Schleimer emphasized that the Paramount Global relationship, with its expanded reach and distribution, is causing existing and new partners to view TKO differently. He stated that the business is still in 'early innings' for partnerships, with a goal of achieving $1 billion in total company partnership revenue, and anticipates meaningful growth in 2026. Mark Shapiro, President and COO of TKO Group Holdings Inc, added that TKO now receives a significant volume of incoming calls from brands interested in portfolio packages across UFC, WWE, and PBR to maximize reach and engagement.

Eric Handler asked for more details on TKO's partnerships and marketing segment, specifically regarding the increase in brands sponsoring both UFC and WWE, the overall growth in the number of brands, and whether the focus is still on volume or if pricing leverage is becoming a significant factor.

Answer

CFO Andrew Schleimer confirmed that brands like Wingstop are now advertising across both UFC and WWE, indicating a growing number of crossover partners. He stated that the team is not going to rest until they reach the billion-plus overall company goal, emphasizing that it's still 'early innings' for this area. President and COO Mark Shapiro added that TKO is now receiving a significant volume of incoming calls from brands looking to wrap portfolio packages across UFC, WWE, and PBR, presenting a strong opportunity for maximizing reach and engagement.

Eric Handler asked about the trends in site fee deals, including the volume and value of deals, how locations are valued, and what percentage of events currently include a site fee.

Answer

CFO Andrew Schleimer explained that the process involves economic impact studies and extensive negotiations, with IMG's global presence enhancing their position. He highlighted the new deal in Perth and a meaningful site fee for a Fight Night in Baku, Azerbaijan, as examples of expanding the model beyond just major PLEs. President and COO Mark Shapiro later added that the effort is relatively new and declined to provide a specific penetration percentage, but noted a dedicated team is focused on this.

Eric Handler asked about the current corporate appetite for sponsorships, including willingness to spend and the factors driving this trend.

Answer

Joe Berchtold, President and CFO, highlighted that sponsorship numbers have consistently grown double-digits for years. He explained that as Live Nation's business expands globally with more arenas and cities, it provides increased inventory for the sponsorship team. He noted that live shows offer marketers a strong return on investment, especially as they navigate other media channels, making music and sports attractive for consumer engagement. He expressed confidence in continued long-term growth for sponsorship.

Eric Handler asked about the current corporate appetite for sponsorships, including what companies are willing to do and how much they are willing to spend.

Answer

President and CFO Joe Berchtold highlighted Live Nation's consistent double-digit sponsorship growth, noting that as the business expands with more arenas, international presence, and cities, it provides more inventory for the sponsorship team. He explained that live shows offer a strong return on investment for marketers, who are increasingly allocating dollars to live experiences like sports and music. Live Nation, with its premium inventory, anticipates continued long-term growth in sponsorship.

Eric Handler inquired about any impact on overseas bets due to the NFL's international expansion. He also asked for early insights on BetVision's performance with the new soccer and basketball rollouts.

Answer

Mark Locke (CEO) confirmed the NFL's international success, noting its growing traction and interest among European players, citing examples like FanDuel's international news and its status as a top-bet sport with Paddy Power. For BetVision, Mark Locke highlighted strong growth with over 100 customers, positive feedback, and its role in increasing distribution and engagement for sports leagues, as well as enabling high-emotion advertising moments for brands.

Eric Handler asked about the impact of NFL international expansion on overseas bets and for early insights on BetVision with its new soccer and basketball rollouts.

Answer

Mark Locke (CEO) confirmed the NFL's international success, noting its traction and piquing interest in the European market. For BetVision, Mark Locke (CEO) highlighted strong growth (over 100 customers), positive results and feedback, and the product's benefits for leagues (distribution, engagement) and advertisers (high emotion moments, strong returns).

Eric Handler from Roth Capital Partners, LLC asked for more detail on the Super Nation iGaming business, specifically about plans for geographic expansion beyond the UK and Sweden and what marketing or operational strategies are enabling its strong growth in competitive markets.

Answer

CEO In Keuk Kim confirmed they are exploring expansion into other European markets like Finland and Spain, as well as Canada, pending regulations. Both Kim and CFO Joseph Sigrist attributed Super Nation's success to applying their disciplined, data-driven marketing and product enhancement expertise from social casino to the iGaming space, which has improved ROI and player retention.

Eric Handler questioned Cinemark's perspective on adopting a "Discount Wednesday" promotion. He also asked about the current contribution of merchandise to concession sales and plans for expanding that business line.

Answer

CEO Sean Gamble described "Discount Wednesday" as an "interesting concept" that the company is watching closely, while highlighting the success of Cinemark's long-standing Discount Tuesday program and sophisticated pricing strategies. He added that merchandise is a small but exceptionally fast-growing part of concessions, up nearly 240% year-over-year, and has become an integral part of the moviegoing event.

Eric Handler from ROTH MKM asked why Cinemark wouldn't announce a new share repurchase program given the strong box office outlook, and requested clarification on the mechanics of the upcoming convertible note settlement.

Answer

CFO Melissa Thomas responded that while returning capital to shareholders is a goal, the immediate priority is the $460 million convertible note settlement due in August. She directed investors to the investor deck for a detailed breakdown of the settlement mechanics, explaining that for every dollar the stock price is above $22, it represents $32 million of exposure.

Eric Handler asked about the levers available to return to pre-pandemic adjusted EBITDA margin levels and sought details on the reactivated new build plan, including project timelines and the domestic versus Latin American mix.

Answer

CFO Melissa Thomas noted that pre-pandemic margins included a ~200 bps benefit from NCM/DCIP dividends that won't recur. She identified attendance and box office growth as the primary drivers for future margin expansion, supplemented by market share gains and per cap growth. CEO Sean Gamble confirmed a new location was opening this week, with other projects in motion for the year. He stated that the new build pipeline is currently more active domestically than in Latin America.

Eric Handler inquired about the revenue contribution from non-food merchandise and how Cinemark can leverage awareness of the strong upcoming film slate to boost Movie Club sales.

Answer

President and CEO Sean Gamble noted that while not broken out separately, merchandise is a growing and meaningful contributor to per capita spending growth, driven by both in-theater and e-commerce sales. He added that the industry is actively discussing how to better promote the upcoming film slate to consumers, and Cinemark is leveraging its large database of loyalty members to build hype and drive frequency.

Eric Handler of Roth Capital Partners, LLC questioned whether Playtika's social casino business is experiencing a negative impact from the rise of sweepstakes casino apps and if the company would consider entering that market.

Answer

CEO Robert Antokol stated that while they see pressure on the social casino category, they cannot definitively quantify the impact from sweepstakes activities. He then firmly stated that Playtika will "definitely not" move into the sweepstakes space, as it is an area the company does not believe in and is not part of its strategic plans.

Eric Handler of Roth Capital Partners asked about the process for bringing a game onto the DTC platform and the broader growth outlook and competitive landscape for the social casino genre.

Answer

Robert Antokol, Co-Founder and CEO, explained the strategy is for all games to eventually run on DTC, with timing dependent on game maturity and technology. He confirmed recently acquired titles are targeted for integration. On the social casino genre, Antokol sees it as stable but believes Playtika can still gain market share, citing the launch of a new slots title as a key initiative.

Eric Handler from ROTH Capital Partners asked about user acquisition dynamics, specifically whether the company is successfully growing Daily Active Users (DAUs) for its focus titles or if the strategy is centered on monetizing the existing base.

Answer

CFO Craig Abrahams clarified that newer acquisitions are seeing user base growth. However, for legacy titles, the strategy is to focus on high-quality users in top-tier markets, leading to a planned decline in DAUs but an increase in Daily Paying Users (DPU), which is the company's primary metric. He noted that reduced marketing on smaller titles also contributed to the overall DAU decline.

Eric Handler of Roth Capital Partners asked about cohort spending trends in FC Ultimate Team and questioned why full-year constant currency bookings guidance was lowered while overall guidance remained unchanged.

Answer

CFO Stuart Canfield noted strong cohort spending in FC and continued focus on driving value through various modes and offerings. Regarding guidance, he explained the original forecast included an FX headwind that has since reversed, and while they haven't updated for the now-favorable rates, it could provide a tailwind if current rates hold.

Eric Handler asked about the expected monetization trajectory from the upcoming World Cup and the potential impact of the event being held in North America.

Answer

CEO Andrew Wilson explained that the World Cup consistently serves as a powerful acquisition and engagement tool that drives long-term growth. He highlighted a significant opportunity with the event in North America, noting that the player base in the region grew 50% during the last World Cup held there. He emphasized that the company will leverage the event across console, PC, and mobile to drive global growth.

Eric Handler requested a breakdown of the live services guidance for the fiscal year between sports and non-sports titles, and asked about the key learnings from Apex Legends Season 22 and future plans for the franchise.

Answer

CFO Stuart Canfield confirmed that live services growth is expected to be mid-single digits, with a stronger contribution from sports. CEO Andrew Wilson added that for Apex Legends, the company understands that significant, systematic innovation is required for substantial growth, not just seasonal updates, and the team is focused on evolving the core game without disrupting the existing player base.

Eric Handler of Roth Capital Partners, LLC inquired about IMAX's target content mix across Hollywood, local language, and alternative content, and asked about potential collaborations with anime studios to increase anime programming.

Answer

CEO Richard Gelfond described local language content as a "superpower," now accounting for about 40% of the box office. He positioned alternative content as a strategic "filler" rather than a primary driver. Regarding anime, Gelfond confirmed its success and noted that IMAX maintains strong relationships with global anime studios and will continue to program the right animated content.

Eric Handler asked for insight into the visibility of the upcoming film slate in China and the factors contributing to the impressive 20% market share for the film 'Sinners'.

Answer

CEO Richard Gelfond and CFO Natasha Fernandes confirmed significant visibility into the Chinese slate, with around 10 local language films already confirmed for the year. Gelfond attributed the success of 'Sinners' to its high quality, the active promotion of the IMAX format by filmmaker Ryan Coogler, and its strong weekday box office performance, which indicated a broadening audience.

Eric Handler inquired about the geographic distribution of the guided 145-160 system installations for 2025, the most opportunistic global markets for growth, and the company's strategy for its maturing convertible notes.

Answer

CEO Richard Gelfond identified Japan and Western Europe as particularly strong growth markets and highlighted the significant financial upside from the Chinese New Year's success, driven by high take rates on local films and a heavy concentration of joint venture systems. CFO Natasha Fernandes added that IMAX is in a strong financial position regarding its convertible notes due in 2026, has various options it is currently evaluating, and noted the existing terms are very favorable.

Eric Handler of ROTH MKM inquired about the pace of system installations ahead of the strong 2025/2026 film slate and sought comment on rumors of a partnership with Netflix for an exclusive movie release.

Answer

CEO Richard Gelfond confirmed that empirical data, including a significant increase in installations and signings, indicates accelerated exhibitor demand. Regarding streaming partnerships, he declined to comment on specific rumors but affirmed that IMAX is continuously exploring innovative content distribution models with various partners.

Eric Handler from Roth Capital Partners asked if retailers anticipate increased consumer price sensitivity and whether the Infant, Toddler & Preschool segment would see growth excluding planned product line exits.

Answer

CEO Ynon Kreiz responded that the company does not see signs of increased price sensitivity and feels well-positioned with its broad range of price points. Regarding the Infant, Toddler & Preschool segment, Kreiz noted that Fisher-Price was disproportionately affected by U.S. trade dynamics but expects trends to improve significantly in the second half.

Eric Handler requested quantification of the potential impact from direct import shifts on Q2 sales and asked where the highly profitable Barbie and Hot Wheels lines are manufactured and their risk of disruption.

Answer

CFO Anthony DiSilvestro declined to quantify the direct import impact due to market volatility. He assured that the majority of die-cast cars and fashion dolls are manufactured in Mattel's owned-and-operated plants outside of China, which provides a significant competitive and cost advantage, implying a lower risk of disruption for these key product lines.

Eric Handler asked for a breakdown of operating expense drivers for 2025, whether share buybacks were factored into guidance, and for perspective on the current scale and future potential of the entertainment business.

Answer

CFO Anthony DiSilvestro confirmed the targeted $600 million share repurchase for 2025 is included in the EPS guidance and that operating expenses are not expected to be materially different. CEO Ynon Kreiz explained that while entertainment financials are not broken out, the division can have a meaningful impact at scale. He highlighted the move into self-publishing mobile games as a key initiative to capture more value from Mattel's IP as the company focuses on executing its entertainment strategy at scale.

Eric Handler from Roth Capital Partners, LLC asked about the performance of the 'Final Fantasy' Magic set in international markets like Japan and how upcoming IPs like Spider-Man and Sonic the Hedgehog might be shifting the game's player demographics to a younger audience.

Answer

CEO Chris Cocks confirmed 'Final Fantasy' was a huge seller in Japan, on track to be the best-selling set ever there, and that Japan is seen as a 'gold mine' for future licensed partners. He explained that while the average player age is 35, new players are typically 11-14, and IPs like Spider-Man and Sonic help expand the game's demographics, including efforts to increase the female player base beyond its current 30%.

Eric Handler of Roth MKM asked for a ranking of the factors driving MAGIC: THE GATHERING's outperformance and questioned the logistics and timeline for shifting manufacturing out of China.

Answer

CEO Chris Cocks attributed MAGIC's strength primarily to strong backlist performance, followed by robust early orders for new sets and the success of Secret Lair, all driven by an expanding player base. CFO & COO Gina Goetter explained that shifting manufacturing is complex and more of a 2026 event, though the work is being accelerated. Cocks added that the difficulty varies by product category, with electronics being the most challenging to move.

Eric Handler asked for the key drivers of the projected revenue acceleration in Hasbro's medium-term guidance. He also inquired about the expected cadence of video game releases, the strategy for in-house versus outsourced development, and if M&A is being considered.

Answer

CFO and COO Gina Goetter identified three growth drivers: continued momentum in MAGIC, a stronger entertainment slate in 2026-2027, and the launch of the Exodus video game. CEO Chris Cocks projected one to two game releases per year from 2026-2030 and highlighted an increased focus on joint ventures and partnerships, like the new deal with Sabre Interactive, rather than M&A.

Eric Handler inquired about the long-term revenue potential for Baldur's Gate 3 and the partnership with Larian Studios. He also asked if MAGIC: THE GATHERING is still projected to decline for the full year despite its Q3 outperformance.

Answer

CEO Chris Cocks stated that Larian has a history of supporting games for a long tail and expects Baldur's Gate 3 to generate revenue for several years, though not at the same level as its $35 million contribution this year. CFO Gina Goetter confirmed that MAGIC is still expected to decline for the full year due to a tough Q4 comparison against last year's Lord of the Rings holiday set.

Eric Handler of Roth MKM inquired about the advertising business, specifically the size of the opportunity in programmatic automation and the role of video inventory in driving growth.

Answer

Co-President & CBO Alex Norström explained that the shift to programmatic automation opens Spotify's unique audio inventory to a much larger pool of demand in a growing ad market. He added that video is a potent and attractive format, and as video inventory on the platform grows, it will increase the supply available to meet this demand.

Asked for an update on the performance and returns of the Lucky Strike acquisition one year later, the profitability of recent new builds, and whether restated historical financials would be provided.

Answer

The Lucky Strike assets are outperforming expectations, with 11 of 14 locations performing well and on track to meet EBITDA targets. All new builds are profitable and significantly outperform the fleet average in revenue. Restated historical financials have already been filed in an 8-K with the press release.

Inquired about the specific drivers of the amusements business, the impact of increased dwell time on F&B sales, and the rollout schedule for the new menu.

Answer

Amusements are being driven by better value, better prizes, and focused marketing. Increased dwell time is expected to boost high-margin F&B sales. The new, tiered menu system will be fully rolled out to all centers by the end of July.

Questioned the impact of payroll costs on gross margin and the rationale for initiating a dividend while simultaneously increasing investment spending.

Answer

Higher payroll costs did impact margins, but a larger factor was the high D&A from recent acquisitions under M&A accounting rules. The dividend was initiated due to the business's strong cash flow generation and ample liquidity, allowing for both shareholder returns and continued growth investments.

Eric Handler asked about the market tiers and amenities for the new theaters scheduled to open in 2018, and for a breakdown of the 2018 net CapEx between new builds and ongoing renovations.

Answer

CEO Amy Miles confirmed the new theaters are disproportionately in top-tier markets like New York and California, and all will be luxury theaters with premium large format screens. CFO David Ownby added that while renovation spending is consistent, increasing landlord participation is reducing the net cost, and some CapEx for 2018 new builds is being spent in 2017.