Sinclair (SBGI) 8 May 242024 Q1 Earnings call transcript

Good afternoon, everyone, and welcome to Sinclair's First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Chris King, VP of Investor Relations. Chris, you may begin.

Thank you. thank Call. joining and XXXX First everyone, Conference Earnings afternoon, you Sinclair's for Quarter Good

on call our me Weisbord, Local Chief and Joining Media. the Financial our Executive President Ripley, Chief and Officer; and Chief our Operating Lucy President and Rutishauser, Officer; Executive Officer President today Vice Rob are of Chris

and Before and on today's page for are available the supplemental our Investor I sbgi.net, on earnings to the everyone remind page. want begin, webcast information we that slides on website, the earnings call Information

the future Certain and include of result matters to discussed forward-looking in those statements on factors. forward-looking important risks results. various in could this Actual uncertainties. call regarding, statements may among Such future as other operating of from the subject a are statements results a number differ things, described

Such earnings which forth factors most our statements. as accessed source its website as filed information, the included of The a the to at key company be recent uses these release. first obligation company reports company's in have SEC no update and company set with www.sbgi.net. can quarter The in been forward-looking undertakes

In accordance made webcast to our being will call with this A our on remain public. website earnings FD, be available will available release. is replay and the until available quarterly Regulation next

to to our and measures measure on measures non-GAAP meant Included formulations. Further not not formulated or be today the financial with reconciliations comparable from GAAP a found can This and GAAP other be will of company's adjusted may on differ is EBITDA. is uses call measures, in the discussion measurements discussions financial of financial specifically website. companies' non-GAAP GAAP and accordance replace

that information may first presentation the investor presentations. prior from in Finally, presentation our quarterly certain investor note we have changed quarter of

routine differ Securities engaged with certain presentation Commission ongoing of in as and presentation to due that we the investor comment will an presentation publicly process earnings the traded call second that quarter well. in currently information our expect are also first believe other from release conference our and We quarter Exchange broadcasters

the me Ripley. Chris turn now Let call to over

and everyone, X on afternoon, overview by quarter results. joining I'll start Good us. of you our introducing financial Slide thank first an for

Sinclair our expectations quarter solid can in segment, first our Media delivered guidance for strong, Channel while exceeded that met see, Local results you As adjusted EBITDA. expectations Tennis

end Local Within guidance top range, revenue distribution slightly slightly advertising range. the the of our revenue while Media, in low end above our came below of was our

within and consolidated As a total result, for were ranges we guidance EBITDA. the comfortably revenues adjusted

to Since dividend our our Turning return to stakeholders of of our $XX to million yield which as dividend, through March have X% XXXX, of has XX. our a paid X. highlight of to strong wanted approximately commitment shareholders I quarterly through cash. Slide the regular beginning we

January cash. debt $XX million While $XX million in of in also purchasing approximately for

in dividend beginning of repurchased of common bought our another Since amortization-related approximately debt $XX XXXX, through payments also our X of the $XX we to in payments. stock and the million retired Class our the back $XX since addition early XXXX, million we In shares in beginning of A face million shareholders nearly to value million XXXX.

maximizing to remains company. commitment for priority Our the for our a all of top value stakeholders

business. We We local multiple of committed traditional the X. growth broader well our remain has as Slide to drivers. industry to Turning Sinclair transformation media the believe as

revenues runoff, we million. $XXX which expect First, to political more excluding see XXXX, the impact of in advertising to equates the record-breaking XXXX Georgia than

as year's this political growth to to several strong get see we what to to growth we close advertising general footprint issue in our closer and the be appears continue and expect oriented and this Senate of demand, We house advertising accelerate political significantly strong election. races

as weighted this primaries, on more lack hypercompetitive to will be anticipate shortly. we be cover of heavily election. spend most will -- advertising general detail presidential at level fourth more focused expect quarters the political the to more spend Rob in the and do we of the Given third

Second, strong and XX% nonnetwork impressions portfolio viewership our viewer over and of focus on content. loyal high drive station continues sports to differentiated across our with local demand driven and news by content

addition, our X XXXX, a with to traditional throughout CAGR net we subscribers In renewing nearly expect XXXX. of all mid-single-digit XXXX X-year retrans, big from

subscribers year. renewals big We X XX% have coming the remainder May remaining up renewed of the the already throughout of as with our traditional of beginning the network of

as half NextGen our [indiscernible] well. reality have in coverage the Broadcasting XX U.S. of We now and XX% of is becoming over markets a over

wireless. Las month Vegas, at in span conference addition, the broad we launched In NAB last

go-to-market Our our NextGen with datacasting Edgio. first platform datacasting partner, market

Slide X. to Turning

For represent a broadcast broadcast will traditional led the often that by industry, years, has sea NextGen Sinclair opportunities industry. about the for broadcast change spoken

pleased is more cost and efficient for distribution a very data delivery. higher Broadcast lower the to distribution time and I'm experience many consumption for NextGen announce latency benefits, quality improved data, with now. data lower that customer has distribution data such as opportunity mass of

data spectrum the disruption Broadspan will of spectrum The use multiple assets for existing collect the to the broadcast data X.X deliveries. platform distribution to across on management and market. data a stations deliver distribution centralizes to without data executed services solutions allocate suite and insights industry's markets

services, and to high-fidelity connectivity Another live broadcast vehicles audio business features. focuses data over-the-air other use would case updates, of include on allow which to distribution software alerts and automotive the

we working addition, sources switch video broadband over-the-top from launched intensive seamlessly bandwidth partnership over-the-air traditional between to new traffic distribution streaming content using with Edgio, in a offload to allowing and have networks. In customer a offload service

achieve centimeters real-time with up Broadspan will data by error accuracy able deliver also GPS augmenting positioning correction precise able fees. X kinematic be to is GPS navigation, which to to

an to on BPS, offer remaining on can not business positioning leader existing we're crucial every regarding broadcast industry should and system near-term happen this and not more industry or long-term exciting NextGen the anything in broadcast the opportunities technology. redundancies infrastructure be satellite-based, almost and addition, heavily which could that We GPS is today. In the for excited focused Broadspan relies new

to gross settlement paid million figure, per settlement million $XXX we $XXX Group announced $XX Diamond contributed addition the Last the to in X. contributed Diamond $XX remaining paid STG in we to the while with that in Ventures January. million an March. ventures Slide additional million the previously Sports to Turning week,

These Directors STG made the discussions following of considerations. units, financial and after allocations revenue, were of EBITDA several free cash Ventures for different considering X Board the and income, independent between X among other including assets, metrics, flow

$XXX to benefits, and to be to Of of Notably, cost STG's increase the expect tax million, our which the income net fees settlement total reflects remains other net portion million estimate, the the in NSA we cost estimate $XXX XX%. approximately XX% considerations.

to to discuss local media over it turn strategy. our me Rob let Now

Thanks, Chris.

the wanted which X. quarter. core touching to came I by slightly expectations core broad down Slide below the Turning begin was advertising on X.X% advertising forma basis. to on in advertising for in and a consolidated Pro first environment, reported our

ago exposure impacted the the on category. the However, as less cable betting FOX well sports last based due year year period premium sports addition Bowl by compared Super in final this being X broadcast being the in as $X million year to decline a on was the quarter to CBS this versus to year

in over second expect year's last both those up We years, single revenue quarter. year-over-year core the with the year-over-year. low second X% streams quarter expected to Absent increase been growth in revenue advertising would do X% have range in growth revenue core digits to

to the year-over-year continue driven to repair a growth and categories. up Legal by quarter, year-over-year. be categories. also and on Services top in pharmaceutical showed Now performer categories home nice homebuilding

However, as betting fell materially earlier, year-over-year. noted sports

sales, revenues. core drivers miss advertising manufacturers and versus Automotive Auto continues by primarily guidance interest our our Medical of see for higher were fewer pressure rates. as dealers modest the the slight to see largest and

XX% As year. slightly than which Also quarter, retail, and of was we of begin last almost the in quarter. is up second year-over-year and pacing the the strong, entertainment medical first pacings note, sports second while pacings pharmaceutical down April XX% services quarter are in softer are betting, almost

to a first our XX, as Slide $XX year. booked advertising expected underway be update a the season million the political political in range. quick guidance record in wanted to We quarter well on of within ad XXXX and spending On political is provide I

in With Notably, anticipate of X, to year we we back-end this both research prebooked independent have continue be third-party political to as strong based on million in $XX May advertising through the as election for This half and data. million second internal fundraising XXXX trends, the to revenues in political year loaded our compares of $XX and $XX date XXXX. day. million of over the same

will us proprietary season to pricing help the price Our to throughout tool revenue. versus maximize political demand properly

will XX Senate will U.S. Looking raises. fall forecast this We in races races those X XX in states XX at XXXX. Sinclair to be as opposed of have market. of competitive the the individual

as addition footprint. fall we believe the house XX for We footprint in the This [indiscernible] races, competitive have this in our presidency footprint XXXX. to we X with races is governor states our within have XX the XX in in our and states to opposed

strong pack XXXX. to above continue see We activity advertising [indiscernible] forecasted million to heavy spending expect revenues for in advertise. $XXX continue us developments These continue to lead issue-based is fundraising, from political and

to turning Slide XX. Now

subscribers Big of reached traditional [indiscernible] X year. XX% agreement the between subscribers multiyear have and agreements of Nearly We for the remaining agreements of now network with X are end new distribution traditional so Big all our this expire that XXXX. on a far

XXXX network us only affiliation compensation before XXXX, in over the visibility back also XXXX that with through half network expires time frame. X providing We big for our of the expenses have high

With XXXX schedules continue XXXX. expect net in these to a from negotiation mind, X-year to for mid-single-digit we retrans CAGR

as comes in during up and the quarter to point refer reaching to XX,XXX TBD, XX and from viewers high our year-over-year, charge covered the which age quarter with data networks, broadcast group. XX quarter [indiscernible] new primetime we positive viewing comment in the XX% the Another over-the-air

during XX In quarter. ratings all-time combined the high networks the X records fact, first set

XX. Slide to Turning

Our news communities. of importance news gathering local the operation while excel broadcast to highlighting continues to

here demonstrated collapse Key March Baltimore. Scott of As our coverage that in by the Francis XX

minutes providing the Washington, collapse with our D.C. live the before station, Our the market coverage Baltimore, live. a Baltimore in station XX of other WBFF, was coverage full station dominated any locally

tragedy, combined million our million be content. and XXX,XXX want view with XX social however website, illustrating wherever million X focus our X our views for they Youtube impressions more they on views on to our X.X viewers stations page and Within engagements, of than hours may connecting their over X the

reporting and we Slide true and division XX, crime. to also the develop storytelling build with sports, to art fans involve on are of continuing and news our entertainment, audio engage social and of and seen As

Meyer commentator Rob We on this season, new focused a podcast which have coach, Champion National and X-time Football hosts to launch football sports on college signed fall. and recently will College Stone Urban off

our is and podcast negotiations entertainers, out we with and active to build as also in team top-tier continue of Our roster talent. multiple athletes audio

planned which announcement weeks, detail this we Look all later coming will the year. out in for an roll have to

an update well provide Tennis Now let me ventures broader to channel our back segment. over as on the turn call Chris to as

EBITDA As and of costs, with XX, million strong Channel Tennis in which was another seen excluding million initiative our Slide total high $XX on growth in at comfortably guidance adjusted recorded guidance. after revenue, net our quarter $XX end was above the $X which in million

from as expect forward of Channel metrics we Roland later live We this Tennis our month. coverage strong look Garros continued growth to

Moving while to year-over-year, XX% tennis the grew Slide channel households and in by XX% XX. first average number media by of XXX% by watching total impressions grew year-over-year. viewers The social quarter grew

in across Tennis distribution monthly with world. X% platforms. The plus the content its networks platform multiple ending thanks The grew year-over-year ratings English-language year-over-year, expanded the quarter as Tennis other total highest Channel Once to drive growth exclusive XXX% all part strong to subscriber ever. increased fast streaming monthly delivery in again, growth outpaced by large TX sports and subscribers continues TC channel its by

this significant a Channel year, In which launch growth. will of addition, offering new provide Tennis later a will leg direct-to-consumer

PBTV in Channel participating We Sinclair week pickleball of note, will the upfront York. time, stronger for for coverage coming believe metrics even the quarters. growth next sports also in the in and New first drive Also Tennis is

I stadium ventures remain through In about on XX. addition, a our opportunities We aggregated excited Channel. ahead we to to as for tournaments Tennis will Tennis growth all portfolio as advertisers tennis update on for many for the be brief well sponsorships wanted opportunities be offering provide Channel. U.S.-based in through Slide

As $XX million additional position million portfolio. of capital of Ventures a Of March while and in $X note the $XXX $X received making million. exit capital during XX, distributions distributions the the in company contributions of held million an into cash quarter,

other quarter, majority-owned this time to these we opportunities is As expect growth illustrated assets. greater potential as into minority of of translate a and as amount significant that consolidation goal well long-term have visibility investments our into over performance Ventures investments the provide to

portfolio. investment a on investors our transform we update as to regular continue will basis We this

the regional and I XX. Before national broadcast different quarter, endeavors call on I the XX awards The Sinclair X during and awards turn the awards. wanted to highlight charitable Emmy discuss financial over won Slide results, to X Lucy to awards including our

second environmental Earth highlights and annual responsibility throughout company. On the social which our Day, we released social efforts our corporate report,

of of that On served X,XXX the of employees food. over of trash time X,XXX and single second day. than company-wide charitable XX,XXX over service more than saw X,XXX our front, in to prepared over April, products day service meals, during we held pounds provide hours and volunteering more which X,XXX boxes collected We over baby impact X,XXX their

I thank another successful to our day take opportunity service. want this for to employees of

of experienced Baltimore. economic collapse Fund, Key to will that in proud Sinclair go $XX,XXX I'm which the fellow Strong that an Tough our have donated announce addition, to helping following here Maryland hardship Key In the the towards Bridge Bridge Baltimore Marylanders

also with Our month Sinclair March. campaign during a in Reading a month-long is was completed reading National Cares which partnership fundamental,

over Now turn the let additional the financial on quarter. in to to call results me details our provide Lucy

and the Chris, guidance. on afternoon, below earlier. guidance guidance distribution you, On our came reasons range exceeded slightly near consolidated revenues a to our end the core met Political Thank delivered in good media due Rob during that the basis, upper as revenues everyone. quarter advertising our Slide first we guidance XX. revenues mentioned was and range of Beginning

revenue. million to political increased on to in compared primarily consolidated As the year, media and higher revenues quarter an increase last $XXX distribution revenues the during

media within overhead expenses in Slide coming to stock-based corporate compensation adjusted anticipated and guidance to better our with range EBITDA expenses On and was insurance. a due sales, also promotion favorable as XX, guidance of result G&A consolidated than and primarily group higher

year-over-year, and year, consolidated a basis, fees. driven expenses last by to in revenues on forma Media overhead. quarter increases were by lower annual higher EBITDA media in compared corporate driven XX%, adjusted and largely increase up pro the increased the programming compensation As network by

and metrics with meaningful end on through X.Xx maturity X-quarter the than net Slide X.Xx more first walks was sheet net X.Xx Group's X leverage March total our lien Sinclair basis. as XX. of the XX trailing years Interest away. a coverage balance the at of was next quarter Television leverage

face As value previously January. for we announced, repurchased in in $XX $XX of debt cash in million million approximately

at at total revolving $X.X was and shares Ventures. quarter Our liquidity position with were SBG at $XXX was consolidated total cash There $XXX our million $XXX Including outstanding million than billion. quarter end million end. at undrawn million commitments, XX more

$XXX Slide to the total million X% we XX million expect $XX in well which revenues. by is in calls introduces to our $XXX primarily million political, X% increase second up growth quarter guidance, quarter. which as to to range, for year-over-year distribution in media the revenues be as $XX X% The in range the driven million

services, grow as given expected to advertising, continued categories. to mentioned, entertainment Core Rob in is X% the strength X%, and retail

forma EBITDA modestly the due production $XXX in the revenues quarter programming cost growth the sales higher pro the higher ago and million, adjusted That's offset $XXX from Tennis Channel to million of initiatives. to EBITDA network be million period. media in higher range year expect the being fees, to by We of up revenue $XXX costs, in on adjusted

CapEx, 'XX rate year, to our of cash Ventures QX on XXXX year in Fed quarter. in XX. and to this received the QX for an changes an additional Slide lower interest expected into fewer The Turning lower increase conclude 'XX expenses $XX notable expense guidance certain first distributions acceleration an We of cuts full are expenses. million taxes media

Chris the call closing I'd like some over that, turn to for back With comments. to

Lucy. you, Thank

and growth and guidance quarter first in processes, core between with second of effective exceeding key advertising at Core quarter meeting our past over most Slide Channel. delivered X% in EBITDA Media our adjusted solid Tennis growth results, our to expectations Local yield solid core trends several the takeaways X% and expectations categories management sales training Sinclair in on XX. driving remain segment anticipate industry-leading advertising. year-over-year quarters. We Turning

we retransmission net We remaining renewing subscribers. from already rate only a XX% good visibility we've the of have next retransmission forecast XXXX to renewed mid-single-digit traditional one CAGR agreements X X-year be of XXXX. agreement year, network couple renewed, years, into have which leading significant to us of in to big affiliation this the With

NextGen and will We brand suite our solutions Broadspan, marketplace announced a to also launch announced of that the partner, unified first data of the NextGen deliver products our Edgio.

In summary, position for Sinclair and long is in strong the a both short term.

XXXX. the questions. contributing Our to robust Rob We throughout and with joining strategic in aligns to focus year, adjusted in the call not of election more open for will could record-breaking be Thank Lucy, us today. excited EBITDA of future front anticipation now about I political Sinclair. growth you the

first Benchmark coming from [Operator Group. is The Your question of Dan Instructions] Kurnos

you Can core bit little deeper guide really into guys a just It's for healthy. the dig QX?

of like guys a Rob it. gave slightly like beyond called bit sounds like color things sports on that, of a that better. bit little You there's are getting sounds It there it little uniqueness out. But betting

on of you you're especially we half So year. back this the environment core of through the in as could maybe kind into seeing talk what QX head

Even to This is return small, a somehow. They're auto it's to rid trending so going Dan. to though get Sure, up. of low is negative, single starting coming Rob. 'XX the it's digit, have very to

that rates. to offset first rebates. But been softness some We expect due the There's the our part year been specialists, with some we've in category. to in that some of automotive weakness interest of able

strong. Our services remain

rates. our pricing we for in with to to able has We results marketplace demand maximize proprietary us help that the have delivered that with in the our a that out drive we're And service the big system, believe home purchase key predictor market is category.

just to that, add I'll Also, Dan.

had some what coming from the high of lack But in of see with in we pointed prior the out prepared quarter. QX really in terms reasons his year. have I performing and certain comps sports remarks, core think some we growth that consistent been off is impacts from sports quarter after betting QX in negative for what at pretty XXXX Rob

So we've been posting are consistently numbers industry-leading. that

a described, QX. for back but So bit for we Obviously, reasons QX we're different trend on little

going that a considered And view craziness the number, know on some how on already potential you're are specific if kind already the that's have record you plays necessarily crowd not year for guys Do a political. of but fact don't given and out the I Maryland not calling out, in competitive race. a that's factoring you

We pricing our the gone significant That's those in seen factored to based inventory to where those demand. algorithm in. of that the why We've that approach prebooks rates we've on Yes. markets we've adjusted dollars.

So in that but on it whack-a-mole, system, team a was yield we happening having what's of with detailed prior goes years, now meetings, the system weekly basis. a a pricing kind without there's and weekly through a like planning pricing have in

we we're So demand. that able to think now than to better prepared ever be handle

Rob fourth managing in year. the the for the everything we're up crowd and that pricing this we've new to Yes. of out terms But [indiscernible] amount would systems quarter. and political our said stay some that Would -- And third putting trends in to that advertising of amount positive through been [indiscernible] certainly, optimistic will we're for hopefully political you expecting that record expect

sports personality. the Meyer come to top-notch It as of And has will lined understate the series a on people I up to and of don't Urban to already podcast. and Urban want off-season podcast first be in-season our signing top

well. that growth area is us as So for definitely a

we just a have to impact out there Is in, it I We've on Chris, mean, way for you guys this the abroad. talking from any been one opportunity one. like saying it's benefit to quantify year? and are the P&L about you're here. front Obviously, NextGen. you should to speak I the we set handfuls on you from millions next and start Can think while. a unique more both Are the of heard have actual that initiatives very guys this? How launching here

color. So love some

Sure.

Automotive operators And make enhanced to be I'm is other be will -- one of hot going I with CDN real our this that, too. we're is opportunity now. time sure actually on in interested its partner, product heels, GPS. CDN the As the first said, to offload that Edgio

And some this at are of coming end year. to be those of going live things the

And live. to when in I offerings think become dollars come those will start

going I to where is a growth an situation exponential think be if sort this will. curve, it's you of

about as somewhat but I'd technologies, slow, curve think get S-shape significant then typical new you more pace an pick If adoption. expect to adoption off up and we it start

more expect So yes, we'd probably end But XXXX it's material to penetration of get what about, asking pick not amount these you're very up revenue. a as significantly. pace that into we markets,

Aaron Now Watts of Bank. coming Deutsche from

I questions. had X

introduced beyond early one, Does macro is that ad though from simply tiers all some companies experience causing rate inventory core flow online heard go perhaps We've to maybe healthy. TV from large not expecting brands And traditional to fairly an impact if Curious concerns, of you this sustained It share same happening several that you're ad marketplace. the used recently and et off Or that's about local spending? first is drivers national also The how that's advertising. advertising back the ad-driven is the you're signs signing the it to into while that hold see? that yet, as a coming streaming proving national around seems cetera, of one has another that been having, continued media but steady think elusive. if softness. recovery

take that. I'll So

unique naturally off it able to our slow, very second as started us addition, Netflix but local facing the we in is be in So positive deal we markets rebounded. the to seller struck a has of for be well. the It exclusive And year quarter. in

global sellers. place ad premium So in of sell taking with might take streaming any dollars, some inventory to the ourselves impact, we've positioned to streaming our have we're

it think nationally. locally So fortifies both and I us

can then end debt And towards And you relatedly, this the you reduction year bought quarter? allocation, accelerate first the your you inorganic obviously does from as your cash since of journey to us debt capital that will off. Are into on think moving there And help target perhaps focus area, the Xx forward? to next there around land ways target? low any move high your ways political. we clearly about back about inflows be you continue help have helpful. cycles But as year, secondly, of That's think leverage healthy Xx, going towards

Yes.

we're around unified a fruition spending going within sales transformation priorities and there'll on on transformation decent significant those So focused cloud savings different broadcast. for efforts, coming trade. we to there, look, to of ad over depending There's so. And stated next new debt of still as looking terms or and opportunistic should continue few equity year Ventures, we're on markets a be which But on come amount the out in opportunities. I've before, where structure, of and the will capital be

debt excess SBG for right is on produced. is that cash now side. going be high are buybacks our are emphasis Our flow list certainly, And to the deleveraging on that that something for being

for. order we've think stated, that always extent undervalued valuation us cows. to no parts as -- that we then sacred to And that -- we And We grossly we'd we're in asset as the we're unlock delever, that's sense, and something to have sales of open help want the that be unlock to make sum well. value

coming Your Fargo. Cahall next of question is Wells Steven from

just guide, $XXX about it's First, million. the retrans QX Christian, Lucy, on

what flat with I you had think QX. in that's

in I the what you done us you've update you lot way year-to-date. could is wondering in seeing pricing you're a coming was would renewals renewals, expect. So on of just those if

acceleration bit little of I thought see might in think quarter-to-quarter we retrans. you a that

trends love bit. So could unpack a if it would I you those

guide much Tennis in strong lower The EBITDA QX. really QX. on is then Channel, in And

lastly, that anything DTC, timing Just of to programming? of trying following just that is investments up Is on kind then else? And understand, Aaron's question. in

you've refinancing Ventures. got assets a of ahead, about at think you've that you lot As got

how You've of terms very, in what's you've been think, company always at I SBG Ventures. the in and structured particular

of do be Do as you those that fungible? to separate move see get of kind kind increasingly refinancing ways leverage silos as there you the refinancings? at the really the you assets into creditors the going into So see are think Or as and going SBG.

Steve. Thanks,

that or so expectations. all we've done our of on deals far So retrans, met first have the exceeded

up be acceleration acceleration year. think I what that our with your when -- seeing were just mid-single-digit in in of this see of in a terms issue coming the indicated, you're might from that 'XX of MVPDs of guidance terms growth will we we timing dovetails the as And expectation 'XX. and because

in question what was I come question there again? think second a of second you're sorry, is And those deals issue then [indiscernible] seeing Steve, your what up. your when terms just So timing deals

Just Channel. It's [indiscernible] on Tennis of kind quarter-to-quarter.

Just trying kind of understand to [indiscernible] the

I'll Lucy Tennis Channel of this. is Garros. chime -- in Roland of because in on lowest QX let because mainly But seasonally

a event. to majors. So production anything do French the open, to. It's I our And biggest one it's in know the if as of don't of Lucy, There's lot want spend quarter. that add you

launch there's that timing year. Yes, later as add, Steve, I direct-to-consumer their around would rights just of also payments Tennis well as upcoming this they have

in well. happens is there spending as initiative around some QX that So

the don't your then then do, we from were change, that's that last expectation that that to extent of And we to look, assets to needed. moved other. don't see both a now be Ventures SBG and foresee we could are the is of in circumstances And terms question, obviously, but for something need or And being our Right. self-funded. one

from is Barton Crockett of Your coming Rosenblatt. next question

a wanted of I drill key couple guys to just that down on talked about. the numbers you

seeing in give us minus what I people now? in I know Fox, about different X%, different churn earlier of takes. of spoke the industry, So have could but terms you're subscriber sense a you think

update on that. you wondering if So I'm could seeing, what just you're us

ad terms in market. And the of then

months of that that advertising I'm interest were even now. bit, couple kind a in rates a bit, for is of on are of but sounds feeling an curious, this broad where impact hoping higher longer maybe You we think that might a just than touched little kind your but have I have just that like environment we're in people impacted fading ago. It

feeling kind that you what in anything, if your of from ad Just macro are backdrop, business?

take So I'll Barton, the first one.

So average been we down, churn. are virtuals mid-single-digit the across That's traditionals subscriber see so percent are -- our growing is the to base. have continuing churn mid-single-digit

to business up it's see that the quarter then the NFL. continue it's as the through will on We're of it. we third Olympics that side playing we're season the and we a football the college well. halfway football. interest quarter, with in advertising, go second out. that business. robust stations. about prime time into will have stimulate We From The watch become our coming kind through we rates, the But be how impacting month-to-month along college this how economy Political to coming Prime NBC hitting has NFL get up And

night announced, way Friday as well the through and I but is on us at Sunday night, it. will ABC how the the look Monday simulcast. -- ABC through indications football games as the year through XX night are all political, carries air starting It that So through hasn't

with rates. reporting there up in add categories that a just that And sensitive is a had to because core interest -- fill was is other is but which weakness if showing that, that been to down bit. little other auto, and some down particularly And continue rate or little [indiscernible] mentioned we've growth do and of been overall even Rob to on able interest what areas we've on, bit to is have

sales key we I'll in our automotive. train categories everybody, not years make to in the brought from have to had background on a And remind to that of those several specialists rest reliance categories ago, that group knowledgeable,

full dots. selling spots the So marketplace well just as versus consultant to prepared we've [indiscernible] been and to

as of bankruptcy there. that now if everyone or question. of kind emergence guys check-the-box Is Comcast none outage develop kind have you hopes, given the just And would any one [indiscernible] the there then other exposure doesn't

or your guys might for that, It this I more point? anything not think you that at to questions there there's have doesn't But matter exposed than are settlement about correct. been.

No, to Diamond now Barton. impact we've to no paid there the that happens be the whatever should We settlement, in future.

Your Hamburger Morgan from question is Stanley. next coming David of

Could you help to various us the considerations with other fee the settlement? timing Diamond tax the benefit, income of increase with regard MSA Sport and the

at some And have X exits, I least whether at fairness higher next the tax be that's that and obviously on that's prior 'XX. when least about those again, long XX committed could actually those -- guaranteed want months question. on they're management category happens fees longer the question in And but we're at impact least, that they But all But guess, side, biggest have is impact time be -- maybe -- into So at either to to post longer. have not of we're -- Diamond is or after it MSA it on payments depends end go and where that. but our or the could collecting of whether X XXXX. that and Diamond already on previous they services, to And it's months how should at to rate. an the emerges the will dependent,

That's helpful.

cash and cash? the think plus So flow million were quarter group. do cash million as cash, the of uses post this any cash assets about to between you there's of Ventures. maintain you'd how $XXX be at what's there's do different us mean, balance the like cash about like spoke I -- silos. free the X obviously, what most envision settlement, cash you the it television you you How Ventures help allocating you generate managing the sitting them? looks exhausted think residual about $XXX minimum if at Or at about they'll more use between to would Can of cash like you

SBG, a build That sheet. a balance over this have there's as the through positive significantly undrawn STG cash lot $XXX million of does Well, cash year. It rest has fully of on the liquidity will revolver. at

Lucy is I'll very is coming business mentioned to there cash. not in for here if is could used return. specific excess for So likely debt shareholder there. let But chime for what's number whatever be could which from this forward. a door going sheet the wants be she as that buybacks, the -- is minimum It high. balance on give cash the used It on out, I before, priority on in is

pay we as in off and are, SBG, come. that will years the I And investing of as focused at to mentioned, very relates least to in course, certain on it areas transformation

$XX have to On million the investments. monetized so. we equitizing approximately Ventures monetizing we'll We continue and or in QX our side, do been minority

build So rush in we'd to expect cash at it. to redeploy Ventures. We're continue no to

we're -- the are to but trends. fragmented -- there. be that, going majority are secular disciplined controlled approach marketplace looking to in growth deploy rush we're industries good in investments new to no And pretty We again, with that our for

It one in number housekeeping that interest question. were higher Fed the expense were just for now. could your factoring guidance had you I that more if sounded What Lucy now like you said -- anticipated of previously -- And than cuts you [indiscernible] are estimating

based on curve. forward David, So the always model we

curve indicating for was back the it year. had like probably we Fed February, Fed So in I to forward -- estimated. X say like the the when was want probably report cuts

X. they're think I Now to down about

So curve in model. we is, use our what forward the whatever is

And your coming of is Soff Benjamin next question Deutsche from Bank.

question. then wondering then you and of of kind I the to the was left Could portfolio? Valley you from Just some estate real I investment there's investments. for the at look the there And value guidance follow-up in investments some the looking your and rest that think the distributions minority the stake When would other guys the just year. that private minority I'm what is appreciate why much a the that housekeeping And on investments. I us majority not there. implies switch be? the to pieces commentary a of are equity remind that of

So we don't any monetizations explicitly. distributions forecast or

you're projections. seeing our that of why that's So any not in

So that's there we don't say think not to that be. will

comes lumpy. business will In of regular it's out that it's operating be. of it's sort since to most not fact, a naturally, they that project certainly harder But something

do So expect monetizations we to be there as year we not continues. project that do But the explicitly. further

And your question? was Sorry, what next

different portfolio. the of items share could the you the if in Just value

Valley that And rest XXX million stake minority assets up is when the the at currently are about. at sitting then you of So of around $XXX the NAV. sum

I number, me including clarify historically, that let know also given Ben, we've just because cash.

So Ventures. at the number cash is Chris excluding that is the is quoting that sitting

got all excluding tallies then up and cash. that's $X.X around They stake, billion. to that got [indiscernible] cash. the -- all you've investments you've Yes,

you quick And a distributions look as transition? of the guys follow-up, as like actively expect to guess I undergoing accelerate kind of more would amount you this then just you forward at get going

target our opportunities to we I the though it's said, models $XXX of monetize I would some on expect that project mean, we're And or is in it have that and do the group list million lumpy, of to level but it, working that's so we in several assets year. set I that as this look, be of through put mentioned monetized. don't one I actively -- reasons monetization continuing

will for very back hand be to closing our comments. appears of end session. much. That now Chris over I to any question-and-answer you the Thank

and extent for us the any Thank you, have us. not please you do operator, joining comments, thank out all hesitate further today. to To you reach or questions to

call. does This much. conference today's very you conclude Thank

You participation. may Thank this disconnect day. phone lines time, at a you your wonderful and have for your