Patrick Sholl

Answer

Rich Bressler, President, COO, and CFO, explained that while iHeartMedia doesn't provide forward guidance on specific ad categories, the strong performance of its top 50 advertisers and largest agency groups serves as a positive leading indicator. Chairman and CEO Bob Pittman added that podcasting growth is "roaring," though the company does not break out the specific growth rates versus other digital audio revenue streams. Bressler emphasized viewing the assets' combined impact for advertisers.

Ask Fintool Equity Research AI

Answer

CEO Bob Pittman stated that programmatic's contribution to Premier Networks' growth was not yet material, attributing the strength more to national advertiser stability. CFO Rich Bressler added they are expanding broadcast inventory to major DSPs. Regarding podcasting, Bressler confirmed that growth was a result of both higher impression volume and increased rates, driven by their large sales force and diverse content portfolio.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Bob Pittman described automated buying as a gradual, multi-phase rollout aimed at unlocking the value of broadcast radio inventory. President, COO, and CFO Rich Bressler clarified that they do not assume a significant revenue contribution from this initiative in the current year. Regarding January's strength, Bob Pittman suggested it was a re-expression of ad dollars that were paused before the election, followed by a subsequent pullback in February as advertisers reacted to economic uncertainty in a seasonally slow quarter.

Ask Fintool Equity Research AI

Answer

CFO John Janedis stated that July subscriber trends were in line with expectations and a typical seasonal uptick is anticipated for the fall sports season. He affirmed the team is closely monitoring subscriber acquisition cost (SAC), conversion, and churn in a competitive market. CEO David Gandler added that strong retention in the core English product supports a continued focus on efficient marketing to leverage the seasonal tailwind.

Ask Fintool Equity Research AI

Answer

CFO John Jenadis stated it was too soon to provide specific pricing for the new offering but noted the difference would be 'significant on a percentage basis.' Regarding the Q1 guidance, he explained that when adjusting for the impact of the Univision non-renewal, the company would have expected mid-single-digit subscriber growth, similar to or slightly better than Q4's 4% growth.

Ask Fintool Equity Research AI

Answer

CEO Sean Gamble explained that while Cinemark supplements studio marketing, the primary goal is to maximize a film's total box office rather than specifically targeting film rental rates. Regarding new builds, he stated that while it can be a mix, the current focus of the reactivated pipeline is more on expansion into new, underserved markets rather than replacing existing theaters, guided by market opportunity and potential returns.

Ask Fintool Equity Research AI

Answer

CEO Sean Gamble explained that operating hours are flexed based on profitability but may not fully solve capacity constraints during peak weekend times. On recliners, he stated that with 70% of the domestic circuit converted, the company is not targeting 100%, instead evaluating conversions on a theater-by-theater basis to ensure positive returns without sacrificing too much capacity in high-demand locations.

Ask Fintool Equity Research AI

Answer

CFO Melissa Thomas stated they expect modest domestic average ticket price growth in 2025, driven by strategic pricing and a higher premium format mix, using data analytics to optimize both attendance and box office revenue. CEO Sean Gamble explained that marketing for alternative content is often highly targeted to niche audiences through established channels, such as an artist's fanbase, which they supplement with Cinemark's own marketing reach.

Ask Fintool Equity Research AI

Answer

CEO Douglas Valenti stated that despite industry chatter, QuinStreet is not seeing any indication that tariffs will impact client spending or the company's outlook for Home Services, which is still expected to grow 15-20%. On media sources, Valenti declined to provide a specific mix for competitive reasons but confirmed the Aquavita Media acquisition has been highly successful in expanding media opportunities beyond the Google ecosystem.

Ask Fintool Equity Research AI

Answer

CEO Doug Valenti responded that while Home Services clients have recently voiced concerns about tariffs, no spending reductions have occurred yet. He noted QuinStreet can pivot to less-impacted market segments if needed. For fiscal 2026, he projected strong double-digit growth absent tariff effects, but stated the uncertainty makes it too difficult to predict the exact growth rate and seasonal patterns at this time.

Ask Fintool Equity Research AI

Answer

CEO Doug Valenti and CFO Greg Wong clarified that the 15% growth was for all non-insurance verticals combined, including Home Services. Mr. Valenti added that the agent-driven business is expected to have a margin profile that is as good or better than the direct business, particularly initially, as it will represent incremental yield on existing media traffic.

Ask Fintool Equity Research AI

Answer

CEO Doug Valenti expressed doubt that the election would resolve state-level rate approval issues, noting that the situation in California will likely take a few more years to normalize. He explained that falling interest rates are a positive for personal loans and credit cards but a negative for the banking business's CD offerings, resulting in a relatively neutral net impact on the company's overall performance. The effect on Home Services and insurance is minimal.

Ask Fintool Equity Research AI

Answer

President, CEO & Director Mike Steib explained that Premion remains a valuable tool for local advertisers, offering targeted reach into the streaming audience that has moved from linear TV. He highlighted the product's synergy with TEGNA's owned and operated streaming apps and noted the company is actively seeking new partnerships similar to its previous constructive relationship with Gray.

Ask Fintool Equity Research AI

Answer

President, CEO & Director Mike Steib explained that Premion remains a valuable and synergistic product for local advertisers, allowing them to reach streaming audiences with enhanced targeting. He emphasized that the business complements TEGNA's owned and operated streaming apps and that the company is open to forming new, constructive partnerships.

Ask Fintool Equity Research AI

Answer

President, CEO & Director Mike Steib explained that Premion offers significant value to local advertisers by extending their reach from linear TV to streaming, enhanced with demographic and location-based targeting. He noted the business is highly synergistic with TEGNA's own streaming apps, which are driving audience growth. Steib also mentioned that the company had a constructive partnership with Gray and is actively engaged in conversations to establish similar partnerships with others.

Ask Fintool Equity Research AI

Answer

President & CEO Mike Steib explained that Premion offers significant value to local advertisers by providing access to streaming audiences with enhanced targeting capabilities. He noted the business is synergistic with TEGNA's owned streaming apps and that the company is actively seeking new partnerships to expand the service.

Ask Fintool Equity Research AI

Answer

President, CEO & Director Mike Steib explained that Premion offers significant value to local advertisers by providing access to streaming audiences with enhanced targeting capabilities, leveraging trusted relationships with TEGNA's sales teams. He noted the business is highly synergistic with TEGNA's owned and operated streaming apps and that the company is actively engaged in conversations for new partnerships similar to the one it had with Gray.

Ask Fintool Equity Research AI

Answer

President, CEO & Director Mike Steib explained that Premion provides real value to local advertisers by extending their reach from linear TV to streaming audiences with enhanced targeting capabilities. He emphasized that the Premion business is highly synergistic with TEGNA's own streaming apps, which are driving audience growth, and noted the company is open to forming new, constructive partnerships similar to its previous one.

Ask Fintool Equity Research AI

Answer

President, CEO & Director Mike Steib explained that Premion remains a high-value product for local advertisers, allowing them to extend their reach from linear TV to streaming audiences with enhanced targeting capabilities. He highlighted the synergy between Premion and TEGNA's owned and operated streaming apps, which are driving audience growth. Steib also noted that the company had a constructive partnership with Gray and is open to similar arrangements in the future.

Ask Fintool Equity Research AI

Answer

CEO Mike Steib countered that regulators should view the competitive landscape through the lens of 'Big Tech' dominance. He argued that companies like TikTok, YouTube, and Facebook dominate media consumption, including news, and that broadcasters have been 'hamstrung' for decades while competing against these massive, well-funded, and unregulated tech platforms.

Ask Fintool Equity Research AI

Answer

CFO Julie Heskett explained that Premion's local advertising business continues to grow double-digits, but its national segment is challenged by large holding companies shifting to programmatic buying. CEO Mike Steib emphasized that local sales teams value the product's targeting capabilities and the company is focused on incentivizing them to drive growth.

Ask Fintool Equity Research AI

Answer

CFO Julie Heskett explained that broadcast television continues to capture the majority of political ad spending. While Premion received some political revenue, it was not material. She confirmed that Premion's return to growth in Q4 is driven by its non-political business, particularly at the local level.

Ask Fintool Equity Research AI

Answer

President & COO Michael Biard responded that for comparable programming like NASCAR, The CW's ad rates are on par or better than the market. EVP & CFO Lee Ann Gliha added that advertising category trends remain consistent, with attorneys and home repair strong, while automotive continues to be a weak spot.

Ask Fintool Equity Research AI

Answer

EVP and CFO Lee Gliha explained that the 2018 growth came from the existing stable base of service-oriented clients who see direct results from TV ads, rather than new advertisers entering the market. She highlighted that there is currently a significant difference in the rate of decline between goods-based and services-based advertising categories.

Ask Fintool Equity Research AI

Answer

CEO Bill Wilson confirmed the search referral headwind is analogous to previous social media algorithm shifts and expects it to plateau and recover over time due to Townsquare's essential role in its local markets. Regarding Townsquare Interactive, Wilson expressed high confidence in a return to revenue growth in 2026, explaining that current muted revenue is a deliberate result of a successful sales force restructuring that has significantly boosted profitability and margins to record levels.

Ask Fintool Equity Research AI

Answer

CEO Bill Wilson conveyed strong optimism for the media partnership program, stating the addressable market includes 'hundreds and hundreds' of markets outside the top 50, representing a significant growth runway beyond the initial $50 million target. Addressing the macroeconomic climate, Wilson acknowledged a 'significant pause' in April across all business lines due to tariff uncertainty, which impacted Q2 guidance for Townsquare Interactive. However, he noted that business trends improved in May and June, with client confidence returning as the administration signaled a resolution.

Ask Fintool Equity Research AI

Answer

CEO Bill Wilson clarified that the guidance assumes the broadcast segment's ex-political revenue will decline in line with 2024's rate of approximately 6%. He reiterated that the company views broadcast as a mature cash-cow business, with digital serving as the primary growth engine. Wilson stated that despite headlines about economic uncertainty, the digital advertising market remains healthy, and Townsquare is performing well, with past challenges at Townsquare Interactive being mostly 'self-inflicted' rather than purely market-driven. He pointed to strong Q1 profit growth projections for Interactive and improving monthly trends as evidence of the company's current resilience and operational strength.

Ask Fintool Equity Research AI

Answer

CEO Bill Wilson and CFO Stuart Rosenstein addressed the debt refinancing. Wilson stated the company plans to use a variable-rate bank loan in early 2025, anticipating that interest rates will continue to decline. Rosenstein added that as leverage comes down, they hope to reprice their spread. Regarding National Digital advertising, Wilson attributed the Q4 improvement to strength in social media and video advertising, particularly via their YouTube multichannel platform, as well as a stabilization in core display ads on their websites and mobile apps.

Ask Fintool Equity Research AI

Answer

CFO Ronnie Ng acknowledged that CTV is a growing competitive area that NCM is monitoring. He stated that the company is actively building out a programmatic platform to compete directly in the CTV space. Ng noted that while NCM's demographic is younger than a typical CTV audience, it is currently difficult to measure a specific, direct impact from CTV's growth on NCM's platform.

Ask Fintool Equity Research AI

Answer

CEO Tom Lesinski explained that the ability to deliver ads quickly, especially through programmatic channels, is a "great tool for improving utilization" when a movie outperforms, allowing them to sell incremental inventory rapidly. He stated that performance-based advertisers (CPG, pharma, travel) continue to invest due to quantifiable outcomes, while brand-awareness or image-focused advertisers are the ones more likely to pause spending in an uncertain economic environment.

Ask Fintool Equity Research AI

Answer

CEO Thomas Lesinski addressed the questions, stating that while Q1 faces temporary headwinds from tariffs and policy shifts, the sales pacing for Q2 looks very encouraging compared to the prior year. He highlighted that the NCMx data platform now supports approximately half of the company's business through KPIs and other measurements, indicating strong client adoption. Mr. Lesinski noted he did not have the exact figure for returning pre-pandemic advertisers but would provide it separately.

Ask Fintool Equity Research AI

Answer

CEO Thomas Lesinski responded that nearly all ad units can feature a QR code, a capability heavily utilized within the NCMx platform for retargeting and attribution. He highlighted that NCM's QR code engagement rates are significantly higher than industry averages. Regarding the exhibitor network, Lesinski stated that the market is stable, with more contract renewals than changes in providers, though NCM remains opportunistic in pursuing new partnerships to enhance its footprint.

Ask Fintool Equity Research AI

Answer

Interim CEO Nick Brien stated that no significant regional variations beyond historical norms are being observed. Regarding Los Angeles, he explained the lost contract was heavily tied to the weak entertainment vertical and the company is now focusing on generating new revenue by engaging independent and digital agencies and driving organic growth.

Ask Fintool Equity Research AI

Answer

Executive Nicolas Brien clarified that the first imperative (sales strategy) is focused on driving revenue growth, while the second (modernizing workflow) involves smart investments in the tech stack. Executive Matthew Siegel addressed regional trends, noting that the West Coast remains a challenge while the South and Midwest are performing well, with strong MTA performance boosting the East.

Ask Fintool Equity Research AI

Answer

CFO Matthew Siegel confirmed that most of the company's yield growth was driven by pricing. Regarding transit, he stated that MTA ridership was approximately 73% of 2019 levels in January, showing gradual improvement. He also noted that other major markets like D.C., Boston, and San Francisco are lagging behind New York's recovery pace, but the overall transit product is enhanced by increased digitization.

Ask Fintool Equity Research AI

Answer

CEO Jeremy Male explained that while there is some advertiser crossover, transit and billboard assets often attract different advertisers targeting distinct audiences, mitigating reallocation risk. Regarding automated channels, he stated that programmatic CPMs are approximately $1 higher than those from the direct sales force. He confirmed that this channel is extending their reach to a host of new advertisers they would not have otherwise captured.

Ask Fintool Equity Research AI

Answer

CFO David Saylor explained the CapEx guidance change was due to timing on shelter contracts and a shift to some less expensive 'managed spaces,' not a strategic reduction in digital investment. CEO Scott Wells noted that digital revenue is expected to systemically outperform static due to capital investment and advertiser preference for flexibility, though static remains a powerful and valued tool for specific use cases. He expects both to coexist and grow, with digital likely growing faster.

Ask Fintool Equity Research AI

Answer

CFO David Sailer stated the CapEx guidance change was due to timing on contractual shelter spend and is not an initiative to slow digital investment; the company still expects to meet its digital installation targets for the year. CEO Scott Wells explained that digital revenue is expected to systemically outperform static due to higher capital investment and advertiser preference for flexibility, though he noted that static assets remain highly valued by a passionate base of advertisers for specific use cases.

Ask Fintool Equity Research AI

Answer

CFO David Sailer stated the CapEx revision was due to timing on shelter spend and cost savings from using more managed spaces, confirming it will not slow the planned number of digital installs. CEO Scott Wells explained that digital revenue is expected to systemically outperform static due to capital investment and advertiser demand for flexibility, although static remains a powerful tool for specific use cases and dedicated clients.

Ask Fintool Equity Research AI

Answer

CEO Scott Wells stated that the company does not plan to significantly accelerate the pace of digital conversions, maintaining a steady rate except in a few underpenetrated cities where ordinance changes could create opportunities. Regarding the digital revenue mix, management explained that the local versus national split for digital revenue is very similar to the overall business mix and not materially different from that of traditional print billboards.

Ask Fintool Equity Research AI

Answer

CEO Scott Wells explained that the slower digital growth in Airports is a rebalancing after a long period where digital was the primary growth driver, and that strong performance in printed assets, often used for market domination campaigns, contributed to the shift this quarter. Regarding the MTA contract, Wells stated that cannibalization risk is low because the new inventory is largely incremental. He clarified that Clear Channel's prior New York footprint was concentrated in Times Square and at major choke points, whereas the MTA assets provide a much broader run-of-market distribution along key commuter corridors.

Ask Fintool Equity Research AI

Answer

CFO & Treasurer Chad Paris stated that hotel CapEx will see a 'meaningful step down' to a more normal run rate after the current heavy cycle, which was driven by the large Hilton Milwaukee project. CEO Gregory S. Marcus added that recent projects involved significant, infrequent 30-40 year CapEx. Regarding theater expansion, Marcus sees limited new-build opportunities and described the M&A market as sporadic and unpredictable. He could not provide a precise comparison for the matinee pricing as it was previously highly market-specific.

Ask Fintool Equity Research AI

Answer

CFO & Treasurer Chad Paris confirmed a significant step-down in hotel CapEx is expected in 2026 as the company moves past its heavy reinvestment cycle, with theater CapEx likely remaining stable. Chairman, President & CEO Gregory S. Marcus added that recent hotel CapEx was unusually high due to major, long-term projects like full bathroom renovations occurring simultaneously at several properties. Regarding theater expansion, Mr. Marcus sees limited new-build opportunities and described the M&A market as sporadic and unpredictable, often involving family-owned businesses.

Ask Fintool Equity Research AI

Answer

CFO & Treasurer Chad Paris confirmed a significant step-down in hotel CapEx is expected in 2026 after completing major projects, while theater CapEx should remain stable. Chairman, President & CEO Gregory S. Marcus added that recent hotel CapEx was unusually high due to extensive, long-cycle renovations. Regarding theater strategy, Marcus stated that new-build opportunities are limited and the M&A market is sporadic and unpredictable. He noted that pre-program matinee pricing was highly market-specific and did not provide a direct comparison.

Ask Fintool Equity Research AI

Answer

CFO & Treasurer Chad Paris confirmed a significant reduction in hotel CapEx is expected in 2026 as major projects conclude, while theater CapEx should remain stable. Chairman, President & CEO Gregory S. Marcus added that recent hotel CapEx was unusually high due to major, long-cycle renovations at several properties. Regarding theater strategy, Marcus noted that new-build opportunities are limited and the M&A market is sporadic and unpredictable. He also explained that pre-program matinee pricing was highly market-specific, making a direct comparison difficult.

Ask Fintool Equity Research AI

Answer

CFO Chad Paris confirmed a 'meaningful step down' in hotel CapEx is expected in 2026 as the heavy reinvestment cycle, highlighted by the major Hilton Milwaukee project, concludes. CEO Gregory S. Marcus added that recent projects were significant 30-40 year upgrades, not just routine refreshes. Regarding theater expansion, Marcus sees limited new build opportunities but is evaluating a few, while describing the M&A market as sporadic and unpredictable. He could not provide a direct comparison for the matinee pricing as it was previously market-specific.

Ask Fintool Equity Research AI

Answer

Gregory S. Marcus (executive) responded that while the company is pleased with the initial uptake of the Marcus Movie Club, its impact on ticket per caps is currently minimal. He noted that its penetration may differ from peers due to the existing strength of the company's Tuesday discount program. On the hotel side, Chad Paris (executive) clarified that the strong group pace is not tied to one specific market but is evident across several key properties. He attributed this success to recent renovations at hotels like the Grand Geneva and the Pfister, which have made them more competitive and attractive for group business.

Ask Fintool Equity Research AI

Answer

CEO Gregory S. Marcus stated their Movie Club pricing is very close to their competitor's. On market share, he emphasized a focus on execution to grow with the industry. Marcus also noted that their large footprint of proprietary PLF screens provides a competitive advantage and flexibility. Regarding the hotel leisure environment, he explained that while post-pandemic 'revenge travel' has softened, it is being replaced by a more normal mix of business and group travel. He stressed the versatility of their 'special assets' which appeal to all segments. Executive Chad Paris added that their upper-upscale positioning helps insulate them from broader leisure softness and that they have sufficient theater capacity to manage peak demand effectively.

Ask Fintool Equity Research AI

Answer

CFO Chad Paris clarified that the value promotions are aimed at bringing back deeply value-driven customers who might otherwise not attend, rather than pulling share from competitors. Regarding concessions, he stated that while stand-alone merchandise is not a major factor, the company has successfully used film-specific souvenir cups and popcorn tubs to help drive concession purchases and increase the per capita spend.

Ask Fintool Equity Research AI

Answer

CEO Kevin Yeaman stated that the company does not anticipate any impact from the ATSC 3.0 transition, as Dolby's technologies are value-based additions on top of the standard codecs. CFO Robert Park added that while they saw some softness in set-top box and consumer electronics shipments in Q3, the full-year guidance remains within the previously communicated range.

Ask Fintool Equity Research AI

Answer

CEO Kevin Yeaman noted that initial Dolby Vision adoption in auto is led by Chinese EV manufacturers, attributing this to their rapid innovation, investment in in-car entertainment, and designs featuring more screens. CFO Robert Park clarified that the tariff impact on the products and services business is minimal, as most of these products are shipped to non-U.S. markets.

Ask Fintool Equity Research AI

Answer

CEO Kevin Yeaman identified the primary growth variables as the pace of adoption and rollout in automotive, the continued expansion of Dolby experiences into mid-range TV lineups, and increased adoption of Dolby Vision capture in mobile devices. Regarding Dolby Cinema, Yeaman noted a modest increase in screens during the quarter and a significant pickup in the investment outlook from exhibitors, who are increasingly focused on premium large format screens as they gain confidence in the 2025 and 2026 box office.

Ask Fintool Equity Research AI

Answer

CEO Richard Gelfond confirmed that 70mm film theaters perform "extremely well" during key releases, driving high capacity. While IMAX no longer produces new film projectors, he said the company is actively sourcing existing units and expects to have more available for Christopher Nolan's "The Odyssey" than for recent film releases, though supply remains limited.

Ask Fintool Equity Research AI

Answer

CEO Richard Gelfond explained that the scheduling process involves carefully balancing the entire slate, analyzing competition from Hollywood films, and identifying open windows for both Hollywood and local language productions. He conveyed that this strategic balancing act has been managed effectively.

Ask Fintool Equity Research AI

Answer

CEO Richard Gelfond explained that there is a 'seasoning period' for new theaters to ramp up, but the duration varies widely by market and location, making it difficult to state a universal trend. He added that the company has not conducted specific research to determine if this ramp-up period has shortened post-pandemic, though opening with a blockbuster film could accelerate it.

Ask Fintool Equity Research AI

Answer

Global CEO Holger Bartel responded that member acquisition spending is limited by its ROI and effectiveness, not by a strict cap tied to the membership fee. He emphasized that as long as the payback is positive and immediate, the company will continue to invest. Regarding retention, Bartel explained that since the majority of club members joined in 2024, reliable data on renewal rates will not be available until the beginning of 2026.

Ask Fintool Equity Research AI

Answer

Global CEO Holger Bartel clarified that acquisition spending is guided by favorable ROI, not capped by the membership fee. He explained that members value the unique travel offers most, but other benefits like lounge access are also highly valued. Bartel noted that reliable data on member renewal rates will not be available until the beginning of 2026, as the majority of current club members joined in 2024.

Ask Fintool Equity Research AI

Answer

Global CEO Holger Bartel clarified that acquisition spending is limited by ROI effectiveness, not a fixed cap, and will continue as long as the payback is positive. He noted that members value different benefits, with the primary draw being access to unique travel deals. On retention, Bartel explained that reliable data will not be available until 2026, as the majority of current club members converted in 2024 and their first renewal cycle has not yet occurred.

Ask Fintool Equity Research AI

Answer

Global CEO Holger Bartel clarified that member acquisition spending is guided by its ROI and positive payback, not by a hard cap relative to the membership fee. He explained that because the majority of club members were converted legacy members in 2024, reliable data on renewal rates will not be available until the start of 2026, after their first renewal cycle.

Ask Fintool Equity Research AI

Answer

Global CEO Holger Bartel clarified that acquisition spending is guided by ROI, not a fixed cap, and will continue as long as the payback is positive. He explained that members value various benefits, with access to unique deals being primary. Regarding retention, Bartel stated that reliable data on renewal rates will not be available until 2026, as the bulk of current club members joined in 2024.

Ask Fintool Equity Research AI

Answer

Global CEO Holger Bartel clarified that acquisition spending is guided by positive ROI, not a fixed cap, as the payback is immediate. He emphasized that members value access to unique deals most. Regarding retention, Bartel explained that since most members joined in 2024, reliable renewal data will not be available until their first cycle completes, with meaningful data expected in 2026.

Ask Fintool Equity Research AI

Answer

Executive Christina Ciocca confirmed that exclusive club offers are the biggest draw for converting members, supplemented by a suite of other benefits. Executive Holger Bartel added that recent consumer hesitancy creates opportunities to secure strong 'distressed inventory' deals from suppliers, which in turn attracts more members to the club.

Ask Fintool Equity Research AI

Answer

Holger Bartel (executive) stated that non-paying member engagement remains stable and that the company is on pace to increase its paid member count by 50% in Q1 2025. Christina Ciocca (executive) added that new benefits like lounge access for delayed flights and weekly giveaways are driving conversions. Bartel attributed the Q4 weakness in Germany to a confluence of temporary factors, including ad timing, an accounting true-up, and political uncertainty, and does not view it as a trend.

Ask Fintool Equity Research AI

Answer

Executive Holger Bartel explained that the membership fee creates a 'closed user group,' enabling better, exclusive offers that members value. For advertisers, he stated that a plan is in place to maintain their reach in 2025 by allowing non-paying legacy members to see, but not purchase, exclusive deals. This strategy is expected to maintain or grow advertising revenues, as paying members show higher engagement.

Ask Fintool Equity Research AI

Answer

Executive Donald Patrick clarified that the company can achieve positive full-year EBITDA even with a declining O&O segment, driven by strong growth in the Commerce Media business in the second half. He explained that in an economic downturn, the O&O business can benefit from lower media costs, while the Commerce Media business sees increased interest from new partners seeking incremental revenue, offsetting potential declines in consumer spending.

Ask Fintool Equity Research AI

Answer

Executives clarified that call centers are under 'agency services,' not O&O, and they continue to operate in health, life, and home services despite recent regulatory and media cost challenges. They also stated that while O&O traffic is lower, the 14 years of historical first-party data is sufficient to support the Commerce Media business, and an inflection point for consolidated company growth is expected in H2 2025.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Hilton Howell noted that political ad buys for the current cycle are coming in much earlier and larger than they did for the previous midterm, though the category remains difficult to predict. On reverse comp, Chief Legal and Development Officer Kevin Latek confirmed that MVPD subscriber trends and network DTC services are key topics in the ongoing, complex negotiations with affiliate partners.

Ask Fintool Equity Research AI

Answer

Patrick LaPlatney, Co-CEO & President, explained that all political ad categories grew except for Senate races, where spending shifted out of Gray's footprint. He identified Auto and Communications as weak core ad categories, partly due to political ad displacement. Sandy Breland, EVP & COO, added that new local direct sales, fueled by digital, remained strong.

Ask Fintool Equity Research AI

Answer

CEO Clint Stinchcomb stated that the direct subscription business is being managed to be relatively flat, as its performance is a direct function of a highly optimized and sometimes lumpy marketing spend. He noted the company is prioritizing larger licensing opportunities but anticipates new service launches with major partners will also influence direct subscription trends.

Ask Fintool Equity Research AI

Answer

CEO Clint Stinchcomb explained that recurring subscription revenue exceeds operational costs, ensuring a minimum free cash flow. He detailed that variable revenue, particularly from large-scale content licensing for AI training, is expected to be significant in 2025, potentially exceeding direct revenue. While not contractually recurring, these deals can become "de facto recurring" through strong partner relationships. Regarding subscriber strategy, Stinchcomb noted their approach involves using high-profile original specials to attract users and a deep library, enhanced by content aggregated for licensing deals, to drive retention.

Ask Fintool Equity Research AI

Answer

CEO Mary Berner detailed that podcasting growth will come from adding new shows, developing new partnerships, growing existing audiences, expanding into video, and leveraging local brands. CFO Francisco Lopez-Balboa highlighted the DMS business's high and improving retention rate, noting it behaves like a subscription model due to low churn and strong new customer acquisition, with over half of DMS customers being new to Cumulus.

Ask Fintool Equity Research AI

Answer

CFO Francisco Lopez-Balboa explained that interest rate sensitivity varies by category, with financial products being most affected, and noted that a combination of lower rates and lower inflation would be ideal for broad advertiser sentiment. President and CEO Mary Berner clarified the podcasting decline was not due to advertiser sentiment but was a result of a difficult year-over-year comparison after changes to their representation agreement with Daily Wire, as well as technical impacts from the iOS 17 update. She stressed that the non-Daily Wire podcast portfolio continues to thrive. Lopez-Balboa added that podcasting is pacing for nice growth in Q4.

Ask Fintool Equity Research AI