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CFO Jason Combs attributed the company's outperformance in Q2 core advertising to its sports strategy but acknowledged broad advertiser hesitancy, especially in the automotive category. President and CEO Adam Symson added that macroeconomic uncertainty is a key factor. Regarding digital strategy, Symson stated that Scripps employs technical solutions to block content scraping and believes that while AI in search may be a headwind for publishers, it could benefit brand-building video advertising mediums.

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CFO Jason Combs noted that in markets with local sports deals, gambling advertising growth is stronger but did not provide specific quantification. CEO Adam Symson provided an update on EdgeBeam, stating they are close to hiring a CEO but advised not to model material revenue for Scripps this year, emphasizing its long-term value. Regarding FCC timing, Symson believes action could begin soon, potentially with swaps or deals brought before the commission even before a full slate of commissioners is confirmed, citing a recognized need to level the playing field for local broadcasters.

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CFO Jason Combs explained that Q1 core advertising was guided down low to mid-single digits due to economic uncertainty impacting the automotive and retail categories. He noted that while a bounce-back from political ad displacement is expected later in the year, it could be offset by economic headwinds. President and CEO Adam Symson discussed the Edge Beam Wireless JV, highlighting its 97% U.S. household reach and long-term potential in datacasting. However, he advised not to model material revenue for 2025, though he expects to share more details soon.

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Chief Financial Officer Jason Combs noted that key political states represent about a third of their markets but did not break down revenue contribution. He specified the Scripps News changes would yield about $35 million in annualized savings. Chief Operating Officer Lisa Knutson highlighted sequential improvement in services and automotive advertising post-election.

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EVP & CFO Frank Lopez-Balboa responded that national ad pacing has not yet shown improvement but noted the category is lumpy. President & CEO Mary Berner clarified that referral search is a minimal part of their digital business and does not significantly impact their DMS offerings. Lopez-Balboa added that while local spot is slightly better than national, key categories like automotive remain pressured, though Cumulus is well-positioned to benefit from a potential interest-rate-driven recovery.

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CFO Francisco Lopez-Balboa explained that the network's performance was impacted by general market weakness, not programming changes, and noted that revenue pacing slowed late in the quarter. CEO Mary Berner expressed optimism about FCC deregulation, expecting a notice of proposed rulemaking by late summer or fall. Lopez-Balboa also reiterated the company's goal to generate $10 million to $15 million from asset sales this year, highlighting a key property in Nashville.

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CEO Mary Berner and CFO Francisco Lopez-Balboa responded that evaluating network show performance is an ongoing process and that Q4 cost cuts included rightsizing content. Lopez-Balboa detailed that advertising weakness was broad-based but acute in interest-rate sensitive sectors like auto and mortgages. He confirmed DMS contribution margins are around 35% with investments focused on ROI-positive hires, not technology. He also affirmed the company has non-core assets, like land in Nashville and broadcast sticks, that it will look to monetize to reduce debt.

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President and CEO Mary Berner detailed that DMS growth is fueled by a full suite of presence products like SEO and website development. CFO Francisco Lopez-Balboa explained that Q4 political revenue is tracking as expected despite a tough 2020 comparison, with potential upside remaining. Berner added that advertisers are pausing due to economic uncertainty and a desire to avoid the 'clutter' of political ads. Lopez-Balboa noted that while Q3 network radio benefited from the summer games and NFL timing, Q4 may be less robust, but local spot is pacing stronger.

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CEO Bill Wilson explained that while direct digital ad sales are strong, declining search engine referral traffic is negatively impacting indirect remnant revenue, muting overall growth. He views this as a temporary issue and remains confident in the long-term trajectory, supported by programmatic growth and media partnerships. Wilson confirmed advertisers are cautious but still spending, and noted that cuts in government advertising (Doge cuts) created a multi-million dollar headwind in 2025. He added that the Phoenix office is performing well, approaching 50 employees and successfully recruiting talent.

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CEO Bill Wilson explained that operating outside the top 50 markets provides a significant competitive advantage, positioning Ignite as a sophisticated, full-service digital agency. He noted that media partnerships contributed about $1 million in Q1 but are expected to grow significantly. Wilson confirmed that over 85% of broadcast advertisers also use their digital solutions and emphasized that Townsquare's digital profit margins are equal to or higher than broadcast margins, making the ad-dollar shift favorable. Regarding deregulation, he expressed excitement, outlining a dual growth strategy of capital-light media partnerships and potential station acquisitions, citing the successful integration of Cherry Creek as a model.

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CEO Bill Wilson explained that while Townsquare no longer discloses specific subscriber counts for Townsquare Interactive (TSI), the business has successfully returned to growth, with Q1 2025 revenue growth expected to double Q4's rate to approximately 4%. He projected a significant 20% year-over-year profit increase for TSI in Q1 and a return to $2.5 million to $3 million in full-year profit growth. Wilson confirmed ARPU remains around $300. Regarding long-term goals, he anticipates high single-digit growth for the Ignite digital advertising business and a return to historical growth levels for TSI by 2026. On deregulation, Wilson stated that Townsquare is well-positioned as a natural acquirer of broadcast assets in markets outside the top 50 but also highlighted the capital-light Ignite Media Partnership model as an alternative growth path.

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CEO Bill Wilson explained that National Digital, while down in Q3, is expected to be flat to slightly up in Q4. Conversely, he noted National Broadcast spot is pacing for a significant decline of over 20% in Q4 and is viewed as a long-term 'cash cow' not expected to return to growth. Wilson attributed core broadcast softness to election-related clutter and the steep national decline. Regarding the SummitMedia partnership, he stated there was no material Q3 revenue, with minimal contributions expected in Q4. The costs are primarily personnel, and the margin profile is slightly lower than the overall Digital Advertising segment, in the high teens.

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CEO Michael Benstock stated that tariff mitigation has been successful and margins are protected, with most price increases taking effect in Q3. CFO Mike Koempel explained the main Q2 impact from the bankruptcy was a credit loss reserve, not revenue, but acknowledged it creates a revenue headwind for H2. He added that the strong sales pipeline is expected to offset this softness over time, with most new revenue likely materializing next year.

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Executive Michael Benstock explained that pricing is very elastic. For branded merchandise, which is priced order-by-order, tariffs are built into the price. For the uniform business, most contracts were updated after the first Trump administration to allow for tariff-related price increases. He stated the company expects to recoup the 'lion's share' of tariff costs from clients, while also working with them to find alternative, non-tariff-impacted products to fit their budgets, suggesting a focus on maintaining profitability while providing flexible solutions.

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CEO Aviv Sher explained that while their playbook is replicable, doing so in new markets like Brazil would require significantly more capital than their initial Mexico investment due to higher media costs and competition. He noted Mexico's success was aided by lower competition, a strong retail presence, and organic market growth. Regarding other LatAm markets, Sher identified Colombia as a challenge due to a new VAT on deposits, forcing a scale-back to a breakeven strategy, while Panama has shown some offsetting success.

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CEO Aviv Sher stated the company is currently defensive, focusing on its core Mexico market, but noted some improvements in Panama. CFO Oscar Iglesias added that Spain's unit economics remain attractive for investment. To reach full-year guidance, Iglesias expects a pickup from most markets, supported by cost savings in Argentina from the end of the River Plate sponsorship, alongside primary growth from Spain and Mexico.

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CFO Oscar Iglesias highlighted that strong momentum built later in Q4, particularly in December, drove lower CPAs and has continued into 2025. CEO Aviv Sher added that the reported flat growth in Mexico masks nearly 20% nominal growth in local currency due to FX headwinds. Regarding expansion, Aviv Sher explained that the ROI is still highest in core markets (Mexico, Spain), and Brazil is too large to enter without a partner. For Argentina, he stated that growth is stalled as they have been unable to secure a license for the crucial province of Buenos Aires, limiting their operations to the city.

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Global CEO Holger Bartel attributed the higher cost of revenue to opportunistic purchases of distressed travel inventory, which were used to create compelling club offers. He expects these opportunities to continue amid weaker hotel demand. Bartel confirmed Travelzoo will keep investing heavily in marketing as long as the immediate payback remains attractive. He noted that strong member acquisition occurred in both North America and Europe, with heavy UK investment driving the reported loss in Europe. Regarding subscription tiers, Bartel stated the company is keeping it simple for now but will evaluate a price increase for 2026.

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Global CEO Holger Bartel attributed the higher cost of revenue to opportunistic purchases of distressed travel inventory to create compelling club offers. He confirmed the company will continue investing heavily in member acquisition as long as the ROI remains attractive. He noted that acquisition was strong in both North America and the UK, with the UK's success impacting Europe's short-term profitability. Regarding a premium tier, Bartel stated the focus is on simplicity for now, but a price increase for the single tier will be evaluated for 2026.

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Global CEO Holger Bartel attributed higher cost of revenues to purchasing distressed travel inventory for strong offers, a trend he expects to continue amid soft hotel demand. He confirmed the company will keep investing in marketing as long as the ROI is positive. He noted acquisition was strong in both North America and Europe, with heavy UK investment driving Europe's reported loss. Bartel stated that while a price increase will be evaluated for 2026, the company is currently focused on a single membership tier.

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Global CEO Holger Bartel attributed the higher cost of revenue to opportunistic purchases of distressed travel inventory to create strong club offers. He stated that as long as the ROI on member acquisition remains favorable, the company will continue to invest heavily. He clarified that member acquisition was strong in both North America and Europe, particularly the UK. Regarding subscriptions, the company is considering a price increase for 2026 but is not currently planning a premium tier to maintain simplicity.

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Global CEO Holger Bartel attributed the higher cost of revenue to opportunistic purchases of distressed travel inventory for strong club offers. He confirmed the company will continue investing heavily in member acquisition as long as the ROI is favorable. Bartel noted that acquisition was strong in both North America and Europe, with heavy UK investment impacting Europe's profitability. He added that while a premium tier is a good idea, the focus is on simplicity for now, with a potential price increase to be evaluated for 2026.

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Global CEO Holger Bartel stated that the cost of revenue increased due to opportunistic purchases of distressed travel inventory for strong club offers. He confirmed Travelzoo will continue investing heavily in marketing as long as the ROI remains favorable. While the UK saw strong growth, member acquisition occurred in both North America and Europe. Regarding a premium tier, Bartel said the company is keeping its model simple for now but will evaluate a price increase for 2026.

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Executive Holger Bartel attributed the regional performance difference to natural business fluctuations, highlighting Germany's strength against a tough prior-year comparison for the U.K. Regarding gross margins, he explained they were impacted by purchasing distressed travel inventory to create compelling club offers and a temporary increase in customer service costs related to the new membership launch.

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Holger Bartel (executive) explained the subscription costs $40 annually in the U.S. and provides access to exclusive 'club offers' and special 'member days' events. He stated that conversion is proceeding as planned and that paid members show higher engagement. Regarding travel trends, Bartel noted that the affluent travel segment remains strong in the U.S., while some consumer hesitation in Europe creates opportunities for Travelzoo to secure better deals.

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Executive Holger Bartel stated that Travelzoo is not providing a forecast for the 2025 revenue mix or paid member count at this time. He clarified that substantial membership revenue growth is expected in 2025, not Q4 2024, due to the exemption for legacy members. Executive Christina Ciocca added that the Jack's Flight Club fee is comparable across regions, at approximately $60 in the U.S.

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The company confirmed increased air freight in Q1 and expects higher freight and tariff costs in Q2, which they are navigating by adjusting shipping methods. For the latter half of the year, they are mitigating tariff impacts through supplier negotiations, sourcing diversification, and strategic price increases that have been well-received by wholesale buyers. Positive consumer trends are attributed to strong product performance, particularly in linen, and an extended selling season for the spring collection due to delayed pre-fall shipments.

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The Q4 wholesale shift was not material to Q4's results but will have a more significant impact on Q1 2025. Due to tariffs, the company is actively moving production out of China, which will result in some SKU reduction for the fall season. The freight strategy is now a mix of sea and air; using boats provides flexibility with tariff timing via bonded warehouses, while air freight may be used for precision and faster inventory turns.

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The majority of the beat to guidance was due to the accelerated wholesale shipments. The men's line expansion is focused on the new bottoms program (new fit, better fabric) and potential opportunities with a licensing partner for suiting. The company acknowledges the need for increased top-of-funnel marketing investment in 2025 to drive brand awareness and attract the full-price, higher-income consumer, encouraged by recent strong performance at Nordstrom.

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CFO Yuji Okumura acknowledged that higher freight costs, partly from increased air shipping, impacted Q1 margins and are expected to continue in Q2 as the company navigates tariff timing. CEO Brendan Hoffman added that for the second half of the year, the company is mitigating tariff impacts through supplier negotiations, sourcing diversification away from China, and strategic, item-specific price increases that have been well-received by wholesale partners. Hoffman also attributed strong consumer demand to the success of seasonal products like linen and the strength of the core spring collection, which maintained sales momentum despite delayed pre-fall shipments.

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CFO Yuji Okumura clarified that the wholesale shipment shift was not material to Q4's overall results but does have a more significant impact on the outlook for Q1 2025. CEO Brendan Hoffman added that some SKU reduction is likely for the fall season as production moves out of China. Regarding logistics, Hoffman stated the company is primarily using sea freight for flexibility but may use air freight for more precise delivery and faster inventory turns.

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CEO Robert D'Loren confirmed the adjusted EBITDA forecast of $1 million to $2.5 million for 2025, noting it accounts for potential tariff and HSN consolidation impacts. He affirmed current liquidity is sufficient following a $3 million infusion but that more transactions are in the pipeline. D'Loren highlighted the significant potential of new influencer brands, particularly Cesar Millan. He also stated the company is focused on acquiring brands with large social media followings and media companies to extend reach. CFO James Haran clarified the annual operating cost run rate is approximately $9 million.

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CEO Robert D'Loren stated that the Halston collection looks good and he is comfortable with its 2025 prospects. Regarding Isaac Mizrahi, he explained the company took a conservative valuation approach due to challenges with in-person studio appearances, but a new personality will be introduced in January to increase airtime. CFO James Haran added that Q4 adjusted EBITDA will improve but may not turn positive due to hurricane impacts, which Robert D'Loren quantified as a $450k-$500k revenue disruption. D'Loren also confirmed a new home brand launch for March 2025, with several other deals in the pipeline.

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Executive Robert D'Loren stated that the TWRHLL brand exceeded its HSN launch plan by 40% with significant growth planned for 2025 and expansion to other retailers. He confirmed Halston will generate minimum guaranteed royalties in Q3, with a larger ramp expected in 2025. D'Loren also noted a new designer brand will launch on HSN in Q4 with minimal costs, and the Isaac Mizrahi brand is on plan but down year-over-year due to changes in QVC's remote show policy. For Christie Brinkley, expansion into categories like apparel, home, and beauty is planned for major big-box retailers.

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Peter Kang, SVP of Business Development and Operations, detailed the company's diversification strategy through new games and a short drama business. Co-CEO Tony Tian clarified that while it's early to quantify revenue from the Mega Matrix MoU, it will contribute to the top line. Peter Kang also explained that recent marketing cost increases were tied to GDC and new launches and are not expected to recur at the same rate. He concluded by outlining the path to profitability through cost controls and diversified monetization streams like premium mods and mobile microtransactions.

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Peter Kang, SVP of Business Development and Operations, stated that Bellwright is anticipated for an Xbox release in Q4 2025, with Game Pass discussions ongoing with Microsoft. He explained Snail's strategy involves a mix of third-party publishing deals and internal development to diversify its portfolio. Kang also provided release windows for upcoming titles like Robots at Midnight (H1 2025), Honeycomb (H2 2025), and Echoes of Elysium (H2 2025), and noted that marketing budgets are determined analytically based on a game's target market size.

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CFO Heidy Kingwan Chow confirmed the Steam summer sale was successful, significantly improving unit sales and gross profit for the quarter. Peter Kang, Senior VP, Director of Business Development and Operations, explained that distribution partner Paramount+ controls data for 'ARK: The Animated Series,' so viewership numbers could not be disclosed, but noted the second half of season one is still planned for release.

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CEO Mark Walker explained that the company is focused on building direct connections with DSP partners to grow the sell-side business, anticipating a positive impact in the second half of 2025. He projected buy-side revenue around $40 million, with the sell-side making up the remainder of the $90-$110 million guidance. CFO Diana Diaz clarified that cost savings are from fixed costs, specifically staff reductions, which already reduced Q1 operating expenses by 19% and are expected to be ongoing.

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CEO Mark Walker clarified that the buy-side focus is the result of a two-year strategy, not a new shift, aimed at growing the higher-margin business. CFO Diana Diaz quantified further annualized cost savings for 2025 at approximately $1.5 million to $2 million. Diaz also projected a return to positive cash flow in the second half of 2025, aligning with anticipated revenue growth from new initiatives.

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Executive Mark Walker explained that the company's technology infrastructure is highly flexible, allowing them to scale costs up or down with demand, which was crucial for managing OpEx during the recent downturn. He stated that the 2025 revenue ramp will be driven by both rebuilding previous business and diversifying the client base. CFO Diana Diaz projected that adjusted EBITDA would increase quarterly throughout 2025 as revenue builds, following a pattern similar to 2022.

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President Tom Hartnett confirmed that lower-income consumers continue to pull back on discretionary spending, while Chairman and CEO Jim McCann noted that new high-end products sold out, indicating strength among affluent customers. Hartnett stated the company believes it has maintained or gained floral market share. CFO James Langrock clarified that the tariff-impacted 'wholesale' business includes BloomNet's wholesale operations (Napco). Langrock also mentioned that April revenue would be up due to the Easter shift, but everyday business remains soft, with the full quarter expected to be 'slightly better' than Q3.

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President Tom Hartnett attributed marketing challenges to lower-cost channels like natural search, with plans to focus more on mid and upper-funnel channels and leverage AI for content efficiency. CEO Jim McCann and CFO James Langrock stated that margin improvements are expected from 'Work Smarter' initiatives and operational efficiencies, not commodity costs, adding that some savings will be reinvested into marketing. McCann also noted that M&A opportunities have improved and the company may be more active if the right accretive opportunity arises.

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CFO Bill Shea stated that affluent customers continue to perform well, while new lower-priced offerings are successfully stimulating the less affluent segment. On commodities, Shea confirmed cocoa prices are locked in through the next holiday season. CEO Jim McCann and President Tom Hartnett added that the BloomNet florist network size is stable, with a focus on deepening relationships by adding more gift products. They expect BloomNet to return to growth in the second half of the fiscal year.

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CEO Jim McCann acknowledged that cautious sentiment from other companies gave them pause. However, CFO Bill Shea and President Tom Hartnett clarified that the guidance is based on internal initiatives like pricing elasticity and category expansion, not on an assumed macroeconomic improvement. Shea detailed that while some commodity costs like wheat and sugar have eased, cocoa prices remain at all-time highs and freight costs are increasing, leading to a forecast of only modest gross margin improvement.

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President Tom Hartnett confirmed that challenges continued with lower-income consumers, while retention among 'best and better' customers remained strong. Chairman and CEO James McCann added that newly introduced high-price-point items sold out. Hartnett stated the company believes it has maintained or gained floral market share. CFO James Langrock clarified that the 'wholesale' business impacted by tariffs includes BloomNet's Napco division. Langrock also noted that April revenue would be up due to the Easter shift but that softness in everyday business persists, with the full quarter expected to be slightly better than Q3.

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Executive Keith Randall quantified the lost client's revenue at approximately $250,000 annually and projected flat Q4 revenue. Executive David Shworan described the business environment as 'excellent' with a strong pipeline, noting significant deferred revenue is expected in Q4. Shworan also confirmed plans to reduce R&D spending as major projects conclude and explained that sales and marketing costs rose due to an expansion of the sales team to increase market presence.

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CEO David Shworan and CFO Keith Randall addressed the questions. Keith Randall explained that some revenue decline was due to clients switching to less expensive exchange data, a trend that impacts top-line revenue but has a smaller effect on the bottom line. He clarified that client losses in Q4 were due to an acquisition, a business discontinuation, and some spending reductions. For the second half, Randall projected flat revenue for Q3 and approximately 5% year-over-year growth for Q4. David Shworan noted that while he wished for a faster revenue impact from their significant product investments, the strategic move to proprietary data was crucial for reducing risk and enabling innovation, as evidenced by a growing prospect pipeline. He highlighted upcoming products like paper trading, new charting tools, and an integrated web platform as key growth drivers.

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Holiday event bookings are pacing up 10% year-over-year. While off-season opportunities at water parks exist, the operational challenges are significant and the off-season EBITDA drag is minor compared to high in-season profits. Water park locations are considered on a case-by-case basis, driven by financial return, and can serve as a useful weather hedge for their bowling business in the same market.

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The company plans to convert most Bowlero centers to the Lucky Strike brand as part of a two-brand strategy. The water park acquisition is expected to generate superior returns compared to new bowling centers, with a significant roll-up opportunity in a space with similar business mechanics.

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Executive Kirk Davis explained that the new sales structure's impact will materialize through the rest of the year and into 2025, driven by a strong pipeline and a focus on organic lead generation. He stated that the company's untapped potential currently outweighs macroeconomic concerns, citing good visibility in segments like Fulfillment. While stopping short of forecasting specific sequential growth due to sales cycle timing, Davis expressed optimism for the Marketing Services segment's turnaround in 2025, aided by new leadership and services, and highlighted Europe as a key international growth driver.

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CEO David Santrella attributed the expense increase to strategic investments in in-house digital personnel and services. He clarified that a Q2 publishing expense increase was due to a one-time inventory reserve adjustment and noted major book releases are slated for Q4. Santrella confirmed an investment in a new Dinesh D'Souza film and described the Q3 broadcast ad market as sluggish. Regarding the $10 million in savings, Santrella and CFO Evan Masyr explained that the impact would begin in Q3 and be fully realized in Q4.

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Executive Evan Masyr attributed the expense increase primarily to investments in in-house digital personnel to improve long-term margins. He also noted that Q2 publishing expenses were higher due to an increased inventory obsolescence reserve and confirmed an investment in a new Dinesh D'Souza film is on the balance sheet. Masyr described the Q3 spot market as 'sluggish.' CEO David Santrella added that the bulk of the cost savings will be realized starting in Q3, with a partial impact in the quarter.

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CEO David Santrella clarified that national spot revenue grew 20.7% while local spot fell 8.3%. He expressed cautious optimism for faster-than-projected profitability in Miami. Santrella and COO David Evans explained that 2023 is an investment year for digital initiatives, with expense increases expected to cycle in Q1 2024. Evans noted that the $5 million in annual savings from recent layoffs will be realized evenly over the next four quarters. Both executives described the ad environment as cautious due to economic uncertainty.

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Chairman and CEO Grant Johnson explained that while the online gaming market is constantly evolving, there are no other imminent regulatory risks of the same magnitude as the Netherlands. He identified Canada as a market that will require a formal application process. Johnson clarified that the revenue outlook is not negatively impacted, as it doesn't yet include potential contributions from new, less-regulated products like LANDuel and OMEGA. Regarding liquidity, he mentioned the ATM, a shelf for private placements, and amicable negotiations with a fund for a stable payback plan. CFO Dan Marks offered to follow up with the exact number of shares outstanding.

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CFO Dan Marks stated that gross margins, which benefited from the Bethard acquisition, are expected to remain in the high-50% to 60% range. CEO Grant Johnson detailed that CapEx for Helix centers ranges from $500,000 to $1.5 million with an 18-month ROI target. Johnson also projected that the New Jersey esports betting platform would be live before the end of the calendar year, with Ohio and Ontario as the next likely expansion targets. Marks confirmed the monthly cash burn is just under $1 million.

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CFO Dan Marks stated that New Jersey revenue expectations are initially conservative and a small part of the $100M guidance. He confirmed Q4 revenues were in line, though margins were slightly down while handle increased. Marks noted G&A would normalize lower without $3-4M in one-off Q4 costs and that marketing spend would rise in absolute terms but fall as a percentage of revenue due to cross-sell synergies. He also detailed how cross-selling between brands saves on customer acquisition costs, creating material upside.

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CFO Dan Marks explained that gross margins were strong at 67%, driven by high-margin VIP performance from the newly acquired Lucky Dino brands, and he expects margins to normalize in the mid-50% range. He also identified approximately $1.5 million in one-off transaction fees within G&A. CEO Grant Johnson added that EGL tournament data is forthcoming as major events begin in the next month, Helix centers are expected to return to full capacity in June, and the Q4 revenue guidance assumes one month of contribution from the ggCircuit/Helix acquisition.

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