Jason Bazinet

Jason Bazinet asked if Take-Two still expects non-GAAP earnings to grow the year *after* GTA 6's release, beyond the release year itself, and requested an unpacking of the main drivers for this expectation, such as four-quarter attribution.

Answer

CFO Lainie Goldstein confirmed that Take-Two expects its robust release schedule to drive sequential growth next year, establishing a new baseline for the business. She noted that detailed guidance beyond fiscal year 2026 will be provided in the May earnings call, emphasizing that the growth in all years is driven by the release schedule, which includes numerous titles and can be affected by modest shifts.

Jason Bazinet asked if Take-Two still expects non-GAAP earnings to grow the year after GTA 6's release, not just the release year, and the main drivers of that expectation.

Answer

CFO Lainie Goldstein stated that Take-Two expects its release schedule to drive sequential growth next year, establishing a new baseline for the business. She noted that detailed guidance beyond fiscal year 2026 is not provided due to the numerous titles and potential shifts in the release schedule, but a robust schedule is expected to drive growth.

Jason Bazinet asked whether the $1.9 billion in capitalized software on the balance sheet is accounted for consistently with past years and if its size is indicative of the quality or quantity of the upcoming game pipeline.

Answer

CFO Lainie Goldstein confirmed that there have been no changes to the company's accounting policies for software capitalization. The balance represents the cost of games that have achieved technological feasibility and will be amortized upon their release.

Jason Bazinet asked CEO Bob Iger about the future EBIT mix of Disney, questioning whether it will become more balanced between streaming and experiences or remain experiences-driven, given current investments in both.

Answer

CEO Bob Iger reflected on the improved return on invested capital in the parks business due to IP additions, noting current expansions globally and future potential in places like Abu Dhabi. He expressed bullishness on the experiences business's growth. He also highlighted the bright future and growth potential of the entertainment (streaming and movie) business, creating a 'healthy competition' for the number one driver of profitability.

Jason Bazinet asked CEO Bob Iger about the future EBIT mix of Disney, questioning whether it will become more balanced between the streaming pivot and significant investments in the experiences business, or if it will remain primarily experiences-driven over the next 5-10 years.

Answer

CEO Bob Iger recalled that the parks business once had unimpressive returns but improved significantly with the addition of IP like Pixar, Marvel, and Star Wars, enabling confident capital spending. He expressed bullishness on the experiences business's ability to grow due to its broad footprint, ongoing expansions, and global potential (e.g., Abu Dhabi). However, he also highlighted the bright future and growth trajectory of the entertainment business (streaming and movies), creating a 'healthy competition' for the number one driver of profitability, with confidence that both segments will grow nicely.

Jason Bazinet inquired if the revenue benefits from the Verde acquisition would largely offset the headwinds from the Vancouver contract exit in 2026, excluding political tailwinds.

Answer

CEO Sean Reilly confirmed the directional correctness of the revenue offset. CFO Jay Johnson clarified that while top-line revenue might offset, the Verde transaction is expected to have significantly better EBITDA flow-through compared to the low EBITDA contribution from the Vancouver contract.

Jason Bazinet from Citigroup sought clarification on whether the reduced AFFO guidance was driven more by macro softness or the Vancouver contract exit. He also asked if the new UPREIT structure could significantly accelerate the pace of M&A in the outdoor advertising industry.

Answer

CEO Sean Reilly confirmed the guidance change was due to "a little bit of both" softer operations and the Vancouver exit. EVP & CFO Jay Johnson added that while the net reduction is similar to the Vancouver impact, it includes offsetting tailwinds from acquisitions and share repurchases. Regarding the UPREIT, both executives affirmed it is a "big deal" and a "very favorable structure" expected to boost M&A activity by offering a tax-efficient option for sellers.

Jason Bazinet highlighted the disconnect between investor concerns about an economic slowdown and strong company performance, asking for historical analogies, early warning indicators of a downturn, and the growing prominence of the legal advertising vertical.

Answer

Executive Sean Reilly explained that the performance of digital advertising, their shorter-cycle business, serves as a key leading indicator ('canary in the coal mine'), and it currently remains solid. He confirmed that the legal services vertical has grown significantly, now representing approximately 10% of their business, and characterized these clients as savvy and consistent advertisers.

Jason Bazinet from Citi asked about two topics: the reason for the divergence between rising AFFO guidance and falling earnings estimates, and the company's shift from a cautious to a more positive tone on programmatic advertising despite its lower margins.

Answer

Executive Jay Johnson attributed the AFFO-earnings gap to higher non-cash stock compensation expense, driven by a rising stock price and better-than-budgeted company performance. Executive Sean Reilly addressed programmatic margins, acknowledging the higher cost of sale (~10% vs. 6%) is offset by higher CPMs that customers pay for richer campaign data. Reilly expects this cost percentage to decrease as sales volume grows.

Jason Bazinet requested context for the 50% week-over-week spend growth from new e-commerce customers, asking how it compares to the same metric during the pilot phase.

Answer

Adam Foroughi, Co-Founder, CEO, and Chairperson, AppLovin, highlighted that while the swift ramp-up is exciting, the primary focus is on seamless execution, absence of bugs, effective filtering of low-quality advertisers, and optimizing the onboarding funnel. This early growth indicates the tool's potential for future broad opening.

Jason Bazinet asked for context on the 50% week-over-week spend growth from e-commerce customers, specifically how it compares to the pilot phase and how to assess if it's a good number.

Answer

Adam Foroughi, Co-Founder, CEO, and Chairperson, AppLovin, stated that while the swift ramp-up is exciting, the true value lies in the absence of major bugs, customer complaints, or low-quality advertisers. He emphasized the focus on optimizing the conversion funnel, enabling self-service tools, and preparing for a broader opening in 2026.

Jason Bazinet asked about the expected timeline for the non-gaming advertising model to achieve the same level of efficacy as the highly optimized gaming model.

Answer

Co-Founder, CEO & Chairperson Adam Foroughi stated there is no specific timeline, as the models are architecturally different. He highlighted that the non-gaming model has already proven effective with very little initial data. He emphasized the powerful 'flywheel effect' where new data from non-gaming advertisers will not only improve that model but also provide valuable cross-category signals to enhance the core gaming model, creating a strong foundation for long-term growth.

Jason Bazinet from Citigroup asked about the expected timeline for the new non-gaming Axon model to achieve performance parity with the highly effective gaming-focused model, considering the data and learning required.

Answer

CEO Adam Foroughi responded that there's no way to know the exact timeline, but highlighted a key difference: the non-gaming model started with zero data in new categories and performed well, unlike the gaming model which had significant data at launch. He emphasized that as more non-gaming advertisers join, the new data will create a powerful flywheel effect, improving both the non-gaming and gaming models through cross-category correlations.

Jason Bazinet from Citigroup asked about the Q2 guidance, which implies slower sequential growth of 3-5%, and whether investors should anticipate future sequential revenue declines, similar to an event in 2022.

Answer

Executive Adam Foroughi explained that 2022 is not a relevant comparison as it was before the launch of the AXON model. He attributed the Q2 guidance to typical seasonality, where Q2 is historically the slowest quarter for sequential growth. Foroughi emphasized that the business is in a high-growth phase, driven by model improvements and the upcoming self-service dashboard, making past performance less indicative of future trends.

Jason Bazinet asked for the number of advertisers currently in the e-commerce pilot and confirmed if the rollout of self-serve tools is the primary catalyst for onboarding more clients at scale.

Answer

CEO Adam Foroughi declined to provide a specific number but indicated it was not in the thousands, highlighting the small go-to-market team of about 20 people. He confirmed that developing self-serve and automated tools is the key to opening the platform to a much larger number of advertisers, which will also help attract more supply from game publishers.

Jason Bazinet from Citigroup Inc. asked about the potential ramp-up of the e-commerce business, questioning if factors like lower brand awareness in e-commerce circles or the need for a new sales team could lead to a slower adoption rate compared to their established gaming vertical.

Answer

CEO Adam Foroughi acknowledged the need to build brand awareness in the new e-commerce category but expressed confidence in a strong organic growth trajectory, similar to their approach in gaming. He emphasized that the product's exceptional performance, which is already generating significant buzz on social media from pilot customers, will be the primary driver of adoption, attracting advertisers who desperately need new, effective marketing channels.

Jason Bazinet questioned Live Nation's long-held view of economic insensitivity, asking if the company is observing any bimodal consumer behavior, where high-end consumers spend more while low-end consumers face pressure, amidst growing press reports about the low-end consumer 'running out of gas'.

Answer

Joe Berchtold, President and CFO, stated that Live Nation has not observed any bimodal consumer behavior. He highlighted the business's diversity, spanning clubs, arenas, festivals, and stadiums globally, requiring consumption from all consumer levels. He noted that sales for next year's shows and festivals are as fast as ever, indicating no pullback in consumer appetite or consumption.

Jason Bazinet asked if Live Nation is observing any bimodal consumer behavior, with high-end consumers spending more but low-end consumers showing pressure, amidst growing press reports about the low-end consumer running out of gas.

Answer

President and CFO Joe Berchtold stated that Live Nation has not observed any bimodal behavior. He emphasized the business's diversity across clubs, arenas, festivals, and stadiums, globally, requiring consumption from all consumer levels. He noted that shows and festivals for next year are selling as fast as ever, indicating no observed pullback in consumer appetite.

Jason Bazinet asked for clarification on whether the increased CapEx for Venue Nation indicates a strategic shift towards outright ownership of arenas, as opposed to the historical model of leasing or operating venues.

Answer

President and CFO Joe Berchtold confirmed the strategy is to move 'further upstream' toward ownership. He explained that while the approach varies by deal, the company is actively pushing to own the property and building where possible, or to fund the capital build-out to minimize lease payments, representing a clear push for greater ownership within its venue portfolio.

Jason Bazinet sought clarification on Roblox's 2026 bookings growth expectations, specifically if the statement 'our long-term objectives have not changed' implies growth below the 20%+ target previously set for 2025-2027.

Answer

Naveen Chopra (CFO, Roblox) clarified that specific 2026 guidance is premature. He noted tailwinds from platform momentum and new tech, but also potential headwinds from tough 2025 comparisons and new safety policies. He reiterated that these factors don't alter the long-term business outlook, but make it too early to provide specific 2026 numbers.

Jason Bazinet inquired about the platform's capacity to handle the recent surge in user demand and the company's corresponding capital expenditure strategy.

Answer

Founder and CEO David Baszucki explained that Roblox utilizes a hybrid infrastructure model, combining its own bare-metal servers with cloud bursting capabilities. This allows the platform to efficiently scale for peak loads, such as the 30 million concurrent players recently observed, without incurring the full capital cost of maintaining that capacity 24/7.

Jason Bazinet inquired about Roblox's system capacity to handle the recent surge in demand and the company's strategy regarding CapEx and platform resiliency.

Answer

CEO David Baszucki explained that Roblox is handling over 30 million concurrent players by using an optimal mix of its own bare-metal infrastructure combined with bursting into cloud providers. This hybrid approach allows the platform to absorb demand surges efficiently without incurring the full capital expenditure required to handle peak loads 24/7.

Jason Bazinet inquired about Roblox's resilience in a potential macroeconomic downturn, asking whether the company's pace of innovation could offset consumer spending weakness.

Answer

CEO David Baszucki stated that Roblox saw minimal impact during the 2007-2008 downturn, attributing this to the platform's low-cost entertainment model where most users don't spend money. He positioned innovation as a long-term driver for market share growth rather than a short-term tool to counter macro pressures. CFO Mike Guthrie added that while investors will make their own macro assessments, the company's performance has remained strong.

Jason Bazinet asked management to attribute the quarter's outsized growth between Roblox's own platform enhancements versus breakout hits from the developer community.

Answer

CEO David Baszucki described the relationship as completely synergistic, answering 'yes, yes, yes, yes' to both factors being responsible. He used the analogy of Roblox creating a 'fertile platform' with good soil and weather, which in turn enables creators to build amazing things that can flourish. He emphasized that both elements happen in synergy and are essential for growth.

Jason Bazinet from Citigroup inquired about the strategic importance of increasing The CW's owned-and-operated station footprint through M&A and asked for clarification on announcing a transaction before regulatory rules are finalized.

Answer

Chairman & CEO Perry A. Sook explained that while increasing CW O&Os is not the top strategic priority, it is a positive byproduct of certain M&A. Regarding deal timing, he noted that waiver processes exist under current rules and any proposed transaction would include remedies, acknowledging that rules could change during the approval process.

Jason Bazinet questioned if there is broad industry agreement for consolidation and whether the Supreme Court's Chevron deference ruling could hinder the FCC's ability to act without congressional approval.

Answer

Chairman and CEO Perry Sook confirmed unanimous industry support for deregulation via the NAB board. He dismissed the Chevron ruling concern as a 'red herring,' viewing it as a positive for industry by enabling judicial review of agency actions. President and COO Michael Biard added that congressional letters encouraging the FCC to act further support their view that the agency is not limited.

Jason Bazinet from Citigroup sought clarification on the company's regulatory strategy, asking whether meaningful changes could be achieved through simpler FCC rule-making or if a broader legislative push through Congress would be necessary.

Answer

Executive Perry Sook explained that the approach is twofold. Changing the national ownership cap would likely require new legislation from Congress. However, he noted that other in-market ownership rules and regulations could potentially be addressed at an administrative level through the FCC's processes. Mr. Sook confirmed that Nexstar will pursue all available angles with both regulatory agencies and Congress to achieve reform.

Jason Bazinet of Citigroup Inc. questioned the company's confidence and expected timing for reaching its 15 million subscriber goal. He also sought confirmation on whether the financial impact from the recent Amazon AI deal was included in the company's guidance.

Answer

CEO Meredith Kopit Levien reaffirmed that the 15 million subscriber goal by 2027 remains the company's aim, citing persistent demand and a large, growing audience of registered users as a path to conversion. CFO William Bardeen confirmed the Amazon deal is factored into the financial guidance, noting it contributes to the forecasted Q3 acceleration in the affiliate and licensing revenue stream.

Jason Bazinet asked about the specific tactics The New York Times employs to manage the significant price step-up for subscribers when they transition off a promotional rate.

Answer

EVP and CFO Will Bardeen explained that the company uses a data-driven approach, analyzing subscriber engagement signals to determine the next price point, which could be the full price, an intermediate price, or an extended promotion. President and CEO Meredith Kopit Levien added that this process is managed by increasingly sophisticated data science.

Jason Bazinet asked if the contribution mix from Sportradar's key growth drivers—underlying GGR growth, upselling deeper content, cross-selling, and moving up the value chain to MTS—is expected to shift significantly over the next few years compared to the past.

Answer

CEO Carsten Koerl responded that he does not see a fundamental shift. He stated the company will continue to leverage its strong distribution to outperform the ~10% global market growth. He sees continued opportunity from all vectors, including the connection between media and betting, iGaming integration, and upselling via products like MTS, all enhanced by AI. He believes the existing four-pillar growth strategy remains robust.

Jason Bazinet asked for a discussion of the key drivers for gross margin expansion beyond 2025.

Answer

CFO Christian Luiga reiterated that long-term gross margin expansion will come from several areas: the advertising business (in both music and podcasts), monetization of the music marketplace and the podcast Spotify Partner Program (SPP), continued monetization of audiobooks, and the introduction of 'a la carte' purchasing options.

Jason Bazinet of Citigroup asked about the most exciting capabilities of the combined Interpublic-Omnicom entity and whether any competitive gaps would remain in the marketplace after the merger.

Answer

CEO Philippe Krakowsky highlighted the immense power of combining IPG's data assets (Acxiom) with Omnicom's commerce capabilities. He also pointed to the combined entity's media scale, complementary geographic strengths, and significantly enhanced capacity to invest in platforms and AI. He asserted that the pro forma portfolio will be "very complete" with an unmatched ability to solve client problems, positioning the new company to invest in future opportunities rather than filling existing gaps.

Jason Bazinet from Citi inquired about the historically low use of working capital in the first quarter, asking whether it stemmed from a structural change in business operations or was related to other factors like account losses.

Answer

CFO Ellen Johnson explained that the low working capital use was primarily due to disciplined management and the inherent volatility of cash flows, rather than a structural change. She noted that the timing of payments around quarter-end can cause significant swings and mentioned a minor positive influence from restructuring activities, but emphasized that core processes remain consistent.

Jason Bazinet of Citi requested more detail on the costs required to achieve the $250 million in savings, specifically seeking clarification on the 'significant noncash component' of the associated charge.

Answer

CEO Philippe Krakowsky reiterated that the cost to achieve the savings would be equivalent to the savings amount. He explained that the noncash portion would relate to items like real estate and potentially writing off certain rationalized technology assets, but confirmed it would not involve stock-based compensation.

Jason Bazinet of Citigroup questioned the philosophy behind the consistent $600 million share buyback target, suggesting it appeared insensitive to the stock's low valuation.

Answer

Chairman & CEO John Wren clarified that the $600 million figure is not indicative of their usual philosophy. He explained it was an arbitrary number agreed upon with Interpublic Group as part of the merger agreement to provide mutual clarity on capital returns until the deal closes. Wren stated that without this agreement, Omnicom would likely be more active in the market and will have more flexibility post-closing.

Jason Bazinet of Citigroup Inc. looked ahead to 2026, asking when the market might see evidence that the combined Omnicom-Interpublic entity is winning more business, as opposed to the bearish view that the merger could lead to account losses.

Answer

CEO John Wren forcefully dismissed the notion of significant client losses as "nonsense fed by my competitors," arguing that clients are unlikely to disrupt their agency relationships in the current uncertain environment. He expressed strong confidence in the transaction's value and synergy plans. CFO Phil Angelastro added that changing agencies is a highly disruptive process for clients.

Jason Bazinet of Citigroup Inc. asked about the company's stance on share buybacks, particularly given the stock's performance following the IPG acquisition announcement.

Answer

EVP and CFO Phil Angelastro reaffirmed the plan to return to the historical ~$600 million share repurchase level in 2025, after a reduction in 2024 for the Flywheel acquisition. Chairman and CEO John Wren reinforced this commitment, noting his personal alignment as a major shareholder.

Jason Bazinet from Citigroup asked for management's view on whether Omnicom's strong mid-single-digit growth is primarily due to taking market share from competitors or if it reflects a broader, healthier growth trend across the entire advertising industry.

Answer

CEO John Wren attributed the strong performance to a strategic shift in Omnicom's product mix, driven by investments in platforms like Omni and Flywheel that enable better measurement and ROI justification for clients. He believes the industry is healthier, but Omnicom's specific investments have distinguished the company. CFO Philip Angelastro added that portfolio optimization and expanding services to new client departments, such as CIO and sales, have also created new growth avenues.

Jason Bazinet expressed a concern that after the upcoming major media rights renewals, TKO's equity might behave like a "bond" with less exciting growth, and asked if there are enough other levers to maintain high growth.

Answer

Mark Shapiro, President and COO, strongly refuted the "bond" analogy, promising the management team "will not sit still." He listed numerous growth vectors, including global partnerships, live ticket revenue, new promotions like the AAA JV, leveraging IMG's 200+ partners, growing On Location, and creating new ancillary programming. He assured that future media deals will have annual escalators and the company will remain active in creating shareholder value.

Jason Bazinet asked about the defensiveness of Formula One's sponsorship revenue stream in the event of an economic slowdown.

Answer

CEO Stefano Domenicali and CEO Derek Chang both emphasized the resilience of the sponsorship business. They cited the credibility of the F1 global platform, the long-term nature of the contracts, and the high quality of partners seeking broad global exposure. They confirmed they have not seen any slowdown in conversations despite macroeconomic uncertainty.

Jason Bazinet of Citigroup asked about the defensiveness of sponsorship revenue during a potential economic slowdown, seeking to understand its contractual nature compared to media rights or advertising.

Answer

CEO Stefano Domenicali and CEO Derek Chang stressed that sponsorship deals are long-term, contractual agreements, not short-term buys like advertising. They highlighted the strength and credibility of the F1 platform, which provides unique global exposure for partners. They confirmed they have not seen any slowdown in partnership discussions despite macro uncertainty, attributing this resilience to the deep, collaborative relationships and the long-term value proposition F1 offers.

Jason Bazinet asked about the shift in the marketplace mix, where sports have decreased as a percentage of the total while theater has increased, questioning if this was due to the Vegas.com acquisition or a strategic move away from more competitive areas.

Answer

CFO Larry Fey clarified that the shift in mix was almost entirely driven by recent acquisitions. He noted that Vegas.com is predominantly a theater business and Wavedash is mostly concert and theater, which has altered the overall category percentages. Fey confirmed there has been no significant like-for-like strategic shift away from sports.

Jason Bazinet sought clarification on whether M&A capacity referred only to cash on hand or included potential leverage, and asked about the timeframe for an acquisition to become accretive.

Answer

CEO Mark Locke confirmed that M&A capacity refers to the company's existing cash balance, not potential leverage. He specified that the primary focus is on opportunities that are immediately cash accretive, reinforcing that Genius is in a strong position and will only pursue deals that are strategically and financially attractive.

Jason Bazinet asked for an assessment of the NFL partnership, inquiring about which aspects have performed better or worse than initially expected.

Answer

CEO Mark Locke characterized the relationship with the NFL as 'very strong,' emphasizing the early contract renewal and the league's active role as a shareholder. He highlighted that access to the NFL's rich data has been crucial for product innovations like BetVision and that the partnership is delivering excellent results for both parties, implying performance has met or exceeded expectations.

Jason Bazinet inquired about whether New York City's congestion tax and corporate back-to-work initiatives were creating incremental advertiser demand for the MTA contract.

Answer

Matthew Siegel, CFO, responded that the MTA was a significant driver of revenue and EBITDA growth in the previous year, with revenue up approximately 12%. He noted that performance has continued to be strong in early 2025, attributing the success to strong sales execution and increased focus, rather than definitively to congestion pricing or return-to-office trends.

Jason Bazinet requested a reflection on the Spotify partnership one year in, asking about the original objectives and any lessons learned from consumer behavior in the audiobook market.

Answer

CEO Robert Thomson expressed pride in the partnership, stating it has fundamentally changed the audiobook market by expanding the audience. He noted that overall audio revenue grew 13% and that News Corp is a beneficiary of the behavioral changes and adaptations by both Spotify and Audible.

Jason Bazinet asked whether the incremental $200 million in cost savings would be mostly reinvested in the business, similar to the last round, or if it would be focused on generating more near-term EBITDA and cash flow.

Answer

CFO Thomas Barry stated that more of the new savings are expected to flow to the bottom line compared to the previous initiative, although some level of reinvestment will continue. CEO Jennifer Witz added that the guided satellite CapEx savings are separate from this and represent an incremental improvement to free cash flow.

Jason Bazinet of Citigroup Inc. asked about the potential headwind from geographic mix, questioning if subscriber growth from lower-ARPU emerging markets could negatively impact overall revenue growth trends.

Answer

CEO Robert Kyncl expressed confidence by comparing music to the video industry. He noted significant growth runway remains in mature markets like the U.S., where music penetration (around 30%) lags TV (around 50%). In high-growth markets like India, he sees massive potential as GDP growth translates to higher ad revenue and subscription conversion, citing India's 100 million TV households versus only 15 million music subscribers as evidence of the opportunity.

Jason Bazinet inquired about the long-term growth outlook for Unity over the next three to five years and asked for confirmation that the company aims to outpace the growth of the mobile gaming industry.

Answer

CEO Matthew Bromberg expressed strong optimism about Unity's long-term value, citing its unique position across the entire content creation lifecycle. He emphasized that by making development more efficient, Unity can stimulate industry growth. While not directly confirming it would outpace the market, he highlighted a significant "runway for us to grow," particularly in user acquisition and monetization.

Jason Bazinet posed a strategic question about why The Roku Channel is not more widely distributed on non-Roku devices and asked if new software features, like the Sports Zone, are available on all Roku devices in the field.

Answer

CEO Anthony Wood explained that The Roku Channel's success is heavily tied to its deep integration with the Roku OS, which drives discovery and makes it 'much more profitable' on Roku devices. While it is available on some third-party platforms, the focus remains on its home platform. He also confirmed that the company puts 'a tremendous amount of effort' into ensuring that nearly all devices in the field run the same software, making new features widely accessible.

Inquired about the impact of new CTV inventory, including from Amazon Prime Video, and asked for details on advertising vertical trends observed in the second quarter.

Answer

New CTV inventory, especially from live sports, is a major growth driver, contributing to a 21% volume increase. Regarding verticals, CPG and pharma remain strong, auto is improving significantly, while retail was the weakest category in the quarter.