Michael Hickey

Michael Hickey inquired about IMAX's strategy for selecting films to shoot with IMAX cameras, highlighting the success of films like Sinners and Oppenheimer, and how this consistent success enhances IMAX's overall opportunities, including installations, 70mm film, filmmaker relationships, and competitive moat. He also asked about the Narnia partnership with Netflix, Netflix's motivation, and the future opportunities for this model.

Answer

Richard Gelfond, CEO of IMAX Corporation, described elevated demand from filmmakers pitching IMAX projects, strong relationships with existing filmmakers (e.g., Joe Kosinski, Ryan Coogler), and studios encouraging IMAX shooting. He emphasized that the most promising opportunities come from filmmakers who have previously worked with IMAX. Regarding Narnia, Mr. Gelfond highlighted director Greta Gerwig's excitement and commitment to making the film look fantastic in IMAX, and the goal of creating a cultural event to drive buzz and streaming value for the series, noting Netflix's interest in similar projects.

Michael Hickey inquired about IMAX's strategy for selecting films for its 'Filmed for IMAX' program, the consistent success seen with titles like Sinners and Oppenheimer, and how this builds overall opportunities for installations, 70mm film, and filmmaker relationships. He also asked about the Narnia partnership with Netflix.

Answer

CEO Richard Gelfond detailed several approaches: well-known filmmakers pitching IMAX projects, leveraging relationships with existing filmmakers (e.g., Joe Kosinski, Ryan Coogler), and studios encouraging IMAX shooting. He highlighted the elevated demand and the importance of filmmakers 'leaning in' to the IMAX experience. Regarding Narnia, Mr. Gelfond emphasized director Greta Gerwig's excitement, believing the film will look fantastic in IMAX and create a cultural event, leading to increased streaming and IP value for Netflix. He noted Netflix has explored other projects with IMAX under various models.

Michael Hickey asked about the risk of Hollywood studios delaying films pending guaranteed China releases and whether Chinese consumers perceive IMAX as an American brand, which could lead to backlash.

Answer

CEO Richard Gelfond bluntly reiterated his strong confidence that major Hollywood films will secure releases in China, citing recent approvals and direct communications. Regarding brand perception, he stated that IMAX is viewed as a local, prestigious brand in China, where it has a large footprint and high brand value. He also pointed out that IMAX is a Canadian company, mitigating any potential for an 'American brand' backlash.

Michael Hickey of The Benchmark Company asked for details on the exclusive Netflix partnership for "Narnia," its potential as a template, and whether the record Chinese New Year box office was slate-driven or a sign of a broader market recovery. He also questioned the content pipeline for the rest of 2025.

Answer

CEO Richard Gelfond described the "Narnia" deal as a complex arrangement that serves as a template for eventizing specific, high-profile films with streamers, not just any movie. He attributed the China success primarily to a strong film slate, pent-up demand, and effective marketing. IMAX China CEO Daniel Manwaring affirmed the forward-looking Chinese slate is robust, with more big-budget "Filmed for IMAX" titles and a stronger Hollywood slate than in 2024.

Michael Hickey from The Benchmark Company asked for clarification on the new $1.2B box office forecast for 2025, questioned the impact of 'superhero fatigue' on future slates, and inquired about the new technology for Christopher Nolan's next film.

Answer

CFO Natasha Fernandes clarified the $1.2B box office figure is a new, specific forecast. CEO Richard Gelfond dismissed concerns of 'superhero fatigue,' pointing to a well-balanced slate and the success of films like 'Deadpool.' He attributed any past fatigue to an oversupply from streaming. He declined to provide details on the new technology being used by Christopher Nolan.

Michael Hickey asked about the Rockstar team's morale following the GTA VI delay, how Rockstar defines 'polish,' and the proportion of the team focused on polish versus other content ideas or projects within the GTA ecosystem.

Answer

Strauss Zelnick, Chairman and CEO, stated he could not discuss the inner workings of the studio but emphasized Rockstar's extraordinary culture of seeking perfection, evidenced by their consistently high Metacritic scores. He noted that while disappointment exists with delays, the team's approach is to learn, try harder, and aim to exceed all expectations, reflecting a culture of performance, excellence, teamwork, and kindness.

Michael Hickey asked what, beyond trailer views, is driving the record excitement for GTA VI and whether Take-Two anticipates adopting an $80 price point for any upcoming games.

Answer

CEO Strauss Zelnick attributed the anticipation to the massive, ongoing success of GTA V, which has created a huge, actively engaged consumer base with enormous pent-up demand for a new iteration. On pricing, he reiterated that the company focuses on delivering superior value rather than a specific price point, and that pricing is determined at the label level for each release.

Michael Hickey sought reaffirmation of the fiscal 2026 pipeline launch timing and asked about the leadership transition and project status for Project Ethos at 31st Union following a key departure.

Answer

CEO Strauss Zelnick reaffirmed the release schedule through the end of the calendar year. Regarding Project Ethos, he stated the departing leader will remain an advisor, with 31st Union and 2K executives managing the transition, and that the company remains fully committed to the project.

Michael Hickey asked for the company's perspective on upcoming new consoles like the PS5 Pro and Switch 2 and the potential for catalog game releases. He also inquired about the learnings from the 'Project Eagle' playtest.

Answer

CEO Strauss Zelnick maintained the company's policy of not commenting on hardware manufacturers' plans but affirmed support for successful platforms. Regarding 'Project Eagle,' he said the playtest was successful in generating useful community feedback that the development team is incorporating.

Michael Hickey asked about potential upside to near-term guidance, given the strength in Q1 and un-included catalysts like Missouri's launch and a RotoWire product revamp. He also sought more detail on the prediction market opportunity, asking what operators need to feel confident in the regulatory framework and how Gambling.com Group is positioned to benefit.

Answer

CEO Charles Gillespie highlighted the upcoming substantial revamp of RotoWire's consumer product (codename "Project Purple Rain") this summer as a key project with the potential to outperform. On prediction markets, he noted that while the legal situation is becoming incrementally clearer through court victories, the question of state versus federal authority could take time to resolve fully. He stated the company is well-positioned to cover this new category organically without significant OpEx or M&A, already has commercial relationships and revenue from the category, and sees it as a potentially substantial feature of the U.S. market over the next couple of years.

Michael Hickey asked for an update on the Odds Holdings integration and monetization plans, and also inquired about the potential size of the Missouri market opportunity and the medium-term outlook for U.S. iGaming legalization.

Answer

CEO Charles Gillespie stated that while it's early, the Odds Holdings integration is proceeding well, with its data already enhancing the company's owned websites and accelerating new feature development. He also noted positive trends with average revenue per user up on both the B2C and B2B sides. On U.S. expansion, he expressed hope that Missouri will launch sports betting by football season but did not size the opportunity, and he remains optimistic that an iGaming bill will pass in a new state this year.

Michael Hickey asked for the biggest variables that could push the company's revenue CAGR above the guided 15% through 2027 and inquired about the drivers and durability of the 36% growth in Marketing and Media Services.

Answer

CFO Craig Felenstein identified faster market expansion, new product additions, and growth in adjacent markets like iGaming as key variables that could drive revenue above the 15% CAGR. CEO Carsten Koerl attributed the strong Marketing Services growth to delivering better CPA returns for a broad base of operators. Felenstein added that organic growth was over 20%, excluding a recent acquisition.

Michael Hickey asked for CEO Carsten Koerl's long-term vision for Sportradar's evolution over the next 3-5 years and its biggest expansion opportunities. He also inquired about how the company is leveraging AI and machine learning for product innovation.

Answer

CEO Carsten Koerl outlined a long-term vision focused on four growth avenues: continued leadership in sports betting, expansion into the large iGaming market, leveraging data for hyper-personalization in media, and developing its business with governments and regulators. He detailed that AI is being used in three ways: driving internal efficiency, optimizing client value (like in MTS), and creating true innovation by combining sports, fan, and liquidity data.

Michael Hickey of The Benchmark Company, LLC asked for quantification of market share in key African markets, the region's competitive and tax stability, the impact of the Botswana launch, and the company's M&A appetite, especially for the U.S.

Answer

CEO Neal Menashe estimated market share in South Africa could be 30-40% but noted official data is scarce. He stated competition is managed through operational efficiency and brand resonance. CFO Alinda Van Wyk described the tax environment as stable and collaborative. Menashe confirmed Botswana's launch was successful but had a minor impact on the quarter as it began in February. He affirmed the company is actively looking at M&A globally, including in the U.S., if the price and fit are right, leveraging their strong balance sheet.

Michael Hickey of The Benchmark Company asked if the 2025 guidance assumes a similar marketing spend level as 2024 and inquired about the rationale for the increased quarterly dividend, including the likelihood of another special dividend in 2025.

Answer

Executive Neal Menashe confirmed that the budget for 2025 maintains marketing spend at 23% of revenue, which represents a larger absolute number due to higher revenue projections. Regarding the dividend, Menashe stated the increase to $0.04 per quarter reflects confidence and a commitment to shareholder returns. He indicated an aim to exceed the prior year's total dividend payout of $0.25 per share, contingent on M&A opportunities.

Michael Hickey asked for details on the U.S. iGaming path to profitability, the Canadian market share and the impact of Alberta's potential regulation, and a deep dive into Africa, covering the Total Addressable Market (TAM), competitive landscape, regulatory stability, and the absence of other major global players.

Answer

Executive Neal Menashe addressed the questions, stating that for U.S. iGaming, the plan is to grow revenue without increasing investment. In Canada, lessons from Ontario are being applied to prepare for Alberta, and they are actively combating brand cybersquatting. For Africa, he estimated the TAM at around $5 billion, highlighting their head start, local expertise, and strong regulatory relationships as key competitive moats. He noted that major competitors are largely absent, seemingly focused on other markets like Brazil, which Super Group is avoiding.

Michael Hickey of The Benchmark Company, LLC asked about the drivers behind the recent box office strength and its durability, the strategy behind opportunistic pricing promotions, methods for managing concession stand congestion, and the outlook for labor cost pressures.

Answer

Gregory S. Marcus (executive) attributed the box office momentum to high-quality, broad-based content and unexpected hits, which he believes is healthy for attracting diverse demographics. He explained that the company's pricing strategy focuses on driving attendance to build long-term moviegoing habits, which benefits all ancillary revenues. He identified digital ordering as the future solution for managing concession lines and improving per caps. Chad Paris (executive) clarified that the Q1 labor cost increase was an anomaly due to a tough comparison with the prior year's strike-impacted quarter, where operating hours were severely reduced, and he does not expect that level of pressure to continue.

Michael Hickey of The Benchmark Company inquired about the impact of the 2025 and 2026 film slates on average ticket prices and screen count growth. He also asked about strategies to enhance concession per-capita spending and the potential long-term impact of the newly launched Marcus Movie Club on attendance and engagement.

Answer

CEO Gregory S. Marcus explained that their pricing strategy, which focuses on driving attendance through value promotions, is under constant evaluation. He noted that while screen count growth is a consideration, cash flow remains the priority, and the transaction market is currently quiet. Marcus also highlighted the significant opportunity in digital concession ordering to increase basket size through automated upselling. Regarding the Movie Club, he expressed optimism about its potential to build steady cash flow and movie-going habits, while noting its performance might differ from competitors due to Marcus's already strong 'Value Tuesday' program. Executive Chad Paris added that the quality of the 2025 film slate, rather than just the quantity of releases, is expected to be a key driver of growth.

Michael Hickey of The Benchmark Company, LLC asked if Marcus is benefiting from a consumer 'trade-down' to more affordable entertainment amid inflation and inquired about the company's posture on M&A opportunities given its strong capital position.

Answer

CEO Gregory S. Marcus acknowledged that while the theatre business historically performs well in recessions due to its value proposition, the recent success is a combination of factors including a strong film mix and specific operational changes like value promotions. Regarding M&A, he stated that while the company is open to opportunities, the market is currently quiet as potential sellers, many of whom are family-owned, are waiting for market stability before making decisions.

Michael Hickey from The Benchmark Company asked about the incremental revenue potential from the new AMC agreement, particularly the expanded Platinum inventory. He also inquired how the NCMX data suite, including the new 'Blueprint' product, enhances competitiveness against digital platforms, and whether the strong upcoming film slate is boosting advertiser interest.

Answer

CEO Tom Lesinski expressed excitement about the enhanced AMC partnership, stating it unlocks a "huge opportunity" with new, better inventory that will have a material impact in the second half of the year. CFO Ronnie Ng added that having the full network available for the Platinum product will have a greater-than-linear growth effect. Regarding NCMX, Lesinski highlighted how products like 'Blueprint' and 'Bullseye' allow NCM to compete effectively for performance-based ad dollars. He confirmed that the strong upcoming film slate is creating positive buzz and "sustainable excitement," driving client interest.

Michael Hickey of The Benchmark Company asked about attendance growth expectations for 2025-2026, advertiser sentiment, the potential for a stronger upfront market, demand for premium advertising screens, and the recovery outlook for the local and regional advertising business.

Answer

CEO Thomas Lesinski responded that attendance is the primary growth driver and his outlook is in sync with market forecasts for a strong 2025 and 2026, noting it's the first full year post-disruptions. He described advertiser sentiment as 'really good' due to industry stability and NCM's enhanced data capabilities. While expecting a better upfront season, he acknowledged the trend of last-minute scatter market buys continues. Mr. Lesinski confirmed very high demand for premium screens tied to Platinum inventory and expressed optimism for a 'nice comeback' in the local business segment following reinvestment in the sales team.

Michael Hickey questioned the Q4 revenue guidance, seeking clarification on the projected decline despite a strong box office outlook. He also asked about the drivers for 2025 growth, specifically the balance between attendance recovery and sales execution, and probed the company's capital allocation priorities between M&A and share buybacks.

Answer

CFO Ronnie Ng explained the Q4 guidance reflects a difficult year-over-year comparison due to 2023's Taylor Swift concert film and an anticipated mix shift toward lower-CPM G/PG-rated films in December. CEO Thomas Lesinski expressed strong optimism for 2025, expecting significant growth from a normalized film slate driving both attendance and higher revenue per attendee. On capital allocation, Lesinski affirmed the primary focus remains the share buyback program, characterizing recent small investments as strategic and opportunistic rather than a shift in strategy.

Michael Hickey asked about the necessity of live data for emerging predictive markets, the nature of the new share buyback program, and the monetization timeline for the recent NCAA deal.

Answer

CEO Mark Locke asserted that any successful sports-based product will require official league relationships, positioning Genius well, and confirmed the buyback is "entirely opportunistic." CFO Nicholas Taylor clarified that because the NCAA deal's value is concentrated in March Madness, the primary financial impact will be realized in 2026, with minimal contribution to the 2025 guide.

Michael Hickey inquired about the key drivers for unlocking in-play betting growth and asked if the strong 2025 guidance signaled a change from the company's typically conservative 'beat and raise' approach.

Answer

CEO Mark Locke explained that the expected shift to in-play betting is materializing as operators focus on its higher margins, with products like BetVision being key drivers. CFO Nicholas Taylor clarified that the guidance philosophy remains conservative but is more accurate this year due to increased visibility. CEO Mark Locke humorously added they are still the 'same conservative bricks we've always been.'

Michael Hickey of The Benchmark Company inquired about the company's confidence in the Q2 launch and subsequent scaling of its new sweepstakes product. He also asked about the key drivers behind the strong direct-to-consumer (DTC) revenue growth and its future potential, particularly considering the recent Epic vs. Apple court ruling.

Answer

CEO Andrew Pascal affirmed confidence in a measured Q2 introduction for the sweepstakes offering, starting with limited jurisdictions before scaling in the second half of the year. Executive Jason Hahn attributed the 114% YoY growth in DTC revenue to targeted incentives through the loyalty program. Hahn stated the Apple ruling will create more momentum and that the company hopes to double DTC revenue by this time next year, though no formal guidance has been issued.

Michael Hickey asked about current consumer spending trends and their potential impact on the 2025 guidance. He also questioned how the company balances investing in the sweepstakes market given its increasing regulatory scrutiny, and whether the core loyalty program is still a key emphasis or if its effectiveness has diminished.

Answer

CEO Andrew Pascal acknowledged that while market softness is partly due to the emergence of sweeps, there are also indications of consumer caution, which is factored into the conservative guidance. Regarding regulation, he stated PLAYSTUDIOS will take a cautious, phased approach, aiming to be the 'gold standard' by using sweeps as a promotional tool for its core business. He reaffirmed the value of the loyalty program, stating that internal and peer benchmarks show top-tier retention and engagement, and that the combination of loyalty and sweeps will create a unique competitive advantage.

Michael Hickey asked how the significant workforce reduction would impact live services, the development pipeline, and 2025 revenue growth. He also questioned the rewards offering given the DAU decline and asked about potential softness in consumer travel demand.

Answer

CEO Andrew Pascal acknowledged the difficulty in predicting the immediate impact of the restructuring but expressed confidence that the changes will ultimately improve long-term performance. CFO Scott Peterson added that the company maintained its full-year guidance. Pascal clarified that the DAU decline was disproportionately driven by the casual portfolio, particularly Tetris, normalizing after a viral spike, and affirmed that the core casino audience remains highly engaged with Vegas-centric rewards.

Michael Hickey of The Benchmark Company asked about the sustainability of the consumer trend towards premium formats and the potential impact of a U.S.-China 'tariff war' on film releases.

Answer

CEO Sean Gamble confirmed the premium trend remains strong with no signs of a trade-down, but stressed the focus is on elevating the entire moviegoing experience. He sees the upcoming slate as a tailwind for premium mix. Regarding China, Gamble stated it is not a current concern, as its importance to Hollywood's global box office has diminished and there are no signs of it impacting release schedules.

Michael Hickey asked if Cinemark is benefiting from a consumer 'trade-down' effect due to its value proposition and inquired about future pricing strategy and consumer sensitivity.

Answer

President and CEO Sean Gamble acknowledged that moviegoing is historically resilient in tough economic times, though it's hard to quantify the 'trade-down' benefit, noting that consumers continue to purchase premium offerings. CFO Melissa Thomas added that while they are mindful that price is a key deterrent, they see room for modest, data-driven ticket price growth long-term, but cautioned that Q4 pricing may be flat to down due to lapping last year's Taylor Swift concert film.

Michael Hickey asked for a quantification of the EBITDA impact from the Colombian VAT tax that is factored into the 2025 guidance. He also inquired about the percentage of the player base that engages in both casino and sports betting and the strategies used to encourage this valuable cross-sell behavior.

Answer

Executive Kyle Sauers explained the revenue impact by highlighting the gap between 50%+ GGR growth and flat net revenue, noting this would be a meaningful driver of profitability once removed. CEO Richard Schwartz did not provide a specific percentage for cross-sell players but emphasized its strategic importance. He described product features like in-app mini game lobbies designed to reduce friction and encourage players to engage with multiple verticals simultaneously.

Michael Hickey of The Benchmark Company asked if EA could achieve growth in fiscal '26 without a Battlefield release and questioned the ability to grow the College Football franchise after its successful launch.

Answer

CFO Stuart Canfield confirmed that EA expects to grow in FY '26 even without Battlefield, driven by an FC rebound, SCAPE, and The Sims. CEO Andrew Wilson stated that while College Football benefited from pent-up demand, future growth will be driven by the sport's rising popularity and the creation of a combined American football ecosystem with Madden, which he believes is in its "very early stages."