TEGNA (TGNA) 11 Feb 202019 Q4 Earnings call transcript

Good day, and welcome to the TEGNA Fourth Quarter and Full Year 2019 Earnings Call. This call is being recorded.

Our speakers for today will be Dave Lougee, President and Chief Executive Officer; and Victoria Harker, Chief Financial Officer.

At this time, I’d like to turn the call over to Mr. John Janedis, Senior Vice President of Capital Markets and Investor Relations. ahead. go Please

Victoria Good call and Shelby. morning's Today, welcome our had that, to our to President performance opportunity TEGNA's Thank results. the for and full morning release. questions. year press quarter After CFO, and Lougee, XXXX CEO, open webcast. this will earnings fourth review and financial the you, we'll Dave and Harker, up call review our you've and Hopefully,

release, yet If at a seen it's you the available of not have tegna.com. copy

And get that I'd statements to this certain our may cause like conference actual in filings. forward-looking outlined may differ. SEC our includes before non-GAAP includes them This started, financial we are also remind to Factors that measures. call you and and differ results webcast presentation

reconciliations those comparable the most provided in press have to of release. directly the measures measures GAAP We

turn let over And me Dave. with the call that, to

Thank everyone. you and good John morning

earnings year execute across morning, saw this TEGNA on you our five the against business our the creation. pillars of ended As value momentum release as significant with we

As sheet five, cash being generation four, operator; a discipline and balance capital aggressive yet adjacent delevering; rapidly three, the M&A free expansion maintaining one, a opportunities; these two, pursued businesses; innovation allocation. strong best-in-class commitment and reminder, to and and are, into balance flow

as The strength of our today of key continued well growth reinforce pillars, results drivers. as the announced these all we progress on five each long-term our

momentum, a guidance. quarter XXXX year which enter we and on first strong reflected with are bullish is a track our As year, we for in record full

growth our and how conviction long-term year, shareholder drive Beyond we just this increased will of have value. strategy

generate are continue greater for detail As well-positioned shows financial outlook Victoria prominent to performance. we XXXX are will on her how in remarks to tremendous discuss

long-term executed both financial value, we will year. all and inorganic staying guidance metrics move organic as of we growth. pivotal the We our always focused we our shareholder avenues exceeded open creating on met our forward, for on near key XXXX year all for strategy. was company or execution As laser to for a remain we and of

revenue are compared X% was For total that and in marketing more XXXX. expected TEGNA's first recent and full than also services growth advertising This the political to of the driven the advertising from subscription our fourth reduction $XXX Revenue quarter, benefiting year-over-year. revenues, million, by growth quarter was strong in acquisitions. offset up

XX% additional supporting in to by base. our predictability this equates fourth growth ability the having subs our repriced the of portfolio cash to of been continued the our flows future the our revenue XXXX, distribution we half Four retrans expected quarter top-of-market contribute Subscription agreements and Combined rates for secure of to subscriber year. of Big to our just end this subs affiliates. completed of XX% repriced Increasing of of an with as repricing in

advertisers begins political base. as diversify on will underpinning detail final advertisers A into pick steam. go marketing on our to results to from our more dollars quarter. continue new This comment added traditional is improved from and financial a provides fourth grow and to advertising services solid advertiser the demand And solid continue trend with as to later. that that up advertising Victoria we revenues our

retrans top-of-market will the referenced these markets that expand our we from ability that reach rates free and M&A accretive to in which multiples, have and we years, to acquisitions billion I expected immediately reinforce are be in attractive flow, remains Big element schedule. Through nine our continued were with ahead our well months even of core strategy, earlier. cash in strategic political at EPS achieve a to disproportionately benefit spending deliberately further XXXX completed Four acquisitions, of to and of $X.X accretive

flexibility our acquiring to approach impacting stations in acquire to value generated without years disciplined Our additional new the ahead. assets significant

acquisitions cash using million, $XXX owning million and FCC household of adjusted recent ownership of EBITDA headroom of on to $XXX provide cap. $XXX three free are points the million while of basis, Our flow only all under revenues annualized a approximate expected two-year average

this delever expense interest to falling a TEGNA continue plan financial approximately to as flow cash free the enables improve end strong our years low reduce in us to times refinancings, active to the industry This an quarterly to an Our We role rapidly play our attractive ahead. key advantage pay continuing rates of management of two while transactions, debt delever flexibility. by year, taking of X.X consolidator sheet the includes balance and dividend. of completion to recent enabling

approach a adjacent expected returns. acquire earnings free assets and M&A, to high-quality businesses. synergistic assets flow, We disciplined well to We acquiring compelling while seek to are and accretive attractive that be as broadcast cash maintain producing to as

continually additional We and to shareholder consolidation are well-positioned opportunities advantage analyze take of to value. create

a and of strength a opportunities. all as The balance partner for ample our broadcasters under independent to reputation the well future headroom M&A of choice ownership position as cap, sheet,

year I been continued quarter guidance generating noted results us we how revenues in durable as these and successful such the years the in earlier strong reflects, achieve year. and of full recent helped our revenues another sub ahead. our for expect growth TEGNA strong has

revenues. our in of cycle, at financial of into a XXXX relationships with current pricing least XXXX, growth expect the As Fox we of beyond. and after terms our mid subscriber result Four generate XXs percentage we affiliate fever the clarity subscriber and CBS And in in enter agreements XXXX Big renewing year in to our success

election as probably ever very strong as to you a On of can political expectations the more start. off confident the imagine front, we is than XXXX spending cycle are our

with to advantage political stations even battleground take of increasing year states. Our strategically new has many portfolio spend spending, and high been constructed

record year. level quarter, address further we a this an fourth an had Coupled than XXXX markets, advertising year increasing for numbered with political, year, a quarter are anticipated not that Premion’s we confidence the in for spending than $XXX viewers our more have high last and margin capability TEGNA cycles. in we will well-positioned generate and of this to and odd earlier tool outside we election did of OTT in political presidential future for have million seen We

drive strong both and these an any key With continue to expect subscription revenue combination and value of and revenues, durable environment. the of our this up XXXX to our streams to political of half two-year approximately thereafter, beginning make momentum two XXXX in element year strategy we the cycle, with in increasing shareholder percentage total revenue

across libraries create a like couple launched series Crime VAULT how of impactful, continue and True has Be Should and and content growth entertaining of Studios to a Now portfolio. examples, stations our new quarter, strategic titled share we informative the to the updates recognition podcast our on fourth A studio TEGNA I'd five-episode for TEGNA’s program distribution see Amy high-quality content to initiatives example In couple Forty, local initiatives. content for genre archive news paths. leverage another

seriously. and announced why training we of high-quality of information. across January, to serve and Producing that information this XX% have combat is the we very, we committed journalists distributing Which news this take to is a we in country very responsibility all our

age of So, social key media. in this

in fiction help will false between and We social what's consumers and distinguish digital their and what's information fact identify feeds.

cash of achieved XX are accretive key to the billion the months several flow like announced an highlight that I'd EPS since we close, that of $X.X within to to accretive beginning previous milestones summary, and free immediately be the We acceleration acquisitions and announced XXXX. In from expected nine reaching months. closed

for national extending in-house creating capability clients. top-of-market -- the We high-tech automation salesforce, successfully integrated embracing agreements future more base commoditized more Four for agreements, our sub repricing multiple at key solutions a We more sides a Big for the retrans reached distribution an created providing business, and half for multiyear flows. rates, of predictability national and of our of terms cash for

senior by past did our And billion facility, and we finally, favorable as $X.X notes the added in XXXX terms $X.X on flexibility our this credit financial extending September we and of billion and XXXX. further and to revolving sheet strengthened just issuing very repricing January all amending of balance

to actions strategy the so are strong we to have our the taken years executing Our long-term few on generating commitment for results over our shareholders. specific do and past

execute for revenues we entire large the portfolio Summer portfolio. year our record future including flexibility our financial across abundance with NBC to of positioning to framework, strategic forward on our look subscriber more the Games anticipated clear beyond. Olympic and and the We political many value opportunities the stations, a repricing, against We're strategy building remaining see strong for enthused this shareholder ever about years continue our than to

I'll now details. more Victoria? financial to cover over our pass the results Victoria in to call

morning, Thanks, and Dave. for Good joining us. thanks everyone

creative stations those transactions quarter, as our about Dave stations strong we operational in three closed acquired we're highly our excited As last execution both late of as well legacy year. mentioned, we again this all

a I'd few cover like financial you. our consolidated I special with review items Before results, to

partially which for up $X these For the the include were One Spectrum for of offset million, other quarter, of by non-cash two previous million and our charges for write repacking, FCC reimbursements investments. gains. $XX

of covered an $X related to costs In addition, closing acquisitions, incurred $X fees. defense incremental severance activism recent million in in and we our -- million advisor

comments to provide TEGNA’s financial and Now onto results. mainly the non-GAAP of focused results. performance the today drivers trends basis Keep consolidated sight mind are business that clear our of in a financial on my fourth on quarter consolidated into operational line

a comparable result in first to which year the our nearly closed of contribution $XXX This reminder, political the a revenue million recent most our quarter. this as full of same acquisitions, as quarter advertising Also, fourth quarter third in not year also is quarter XXXX. late from of last of results are

period data prior reported our comps find release. and You'll in press all our

continuing by X% our range As total revenue a in our as single-digits. advertising all driven you offerings was beating services year, advertising, was strong detail growth the prior the which company and talk subscription saw quarter in more This the new mid us up and in of acquisitions, minute. as of through about of guidance fourth strength our political for course, in release, revenues, of marketing well year-over-year, I'll

over up Total growth. revenue XXs of last of quarter advertising. XX% excluding impact This our was political percent year, performance prior exceeds guidance the the for high only also

roughly $XXX the revenue growing $X.X to For total XXXX. my million again subscription well revenue, offset to and quarter's XXXX, near momentum partially as year billion, by of advertising was This X% compared cycle driven strength new acquisition. one increased continued advertising the of year services, political marketing in the revenue in contribution XXXX as in absence and political full off by from

the of and Dave of for the subcategories subscriber guidance strong revenue teens. will It's XX% for at worth as giving subscribers produced repriced during another the prior subscription of revenue repriced increased fourth combined with with ahead again, stability future our quarter, said, newly In by reprice predictability of the us half of XX% year, flows the These also of of XX% the base quarter, flows. cash noting exceeding subs be terms repriced high and both year, end our market top this only cash XXXX. rates of

up Advertising services driven Olympics all and loss in the partially year, finished in of most year revenue. as reflecting marketing by well acquisitions XX%, stations, strong our offset categories legacy the as XXXX, growth by of performance the

Now expenses. onto

the to of mid line operating year-over-year This with quarter higher in were predominantly a prior driven for with Our revenue. expenses associated fourth new subscription range higher programming has basis, XX% acquisition our and fees [ph]. XX% by on higher guidance

investment and revenue expenses was expense initiatives, down programming acquisitions, X%. and continued operating Excluding

fees paid networks. programming reminder, a As compensation to reverse include

this producing year. quarter again result, a XX% reported as million, healthy was EBITDA $XX adjusted a As margin fourth very

up and subscription revenue. the year fees operating also acquisitions with higher associated primarily For was expense programming full driven XXXX, higher XX% by

incremental efficiency Excluding ongoing our programming investments, acquisitions to efforts. for down expenses expenses operating year, the costs and X% and reflecting related were

prior ad a the million, to full down As of EBITDA X% million year revenue from in $XXX near was year margin result, political $XXX XXXX. absence XXXX high adjusted due

$XXX the free We $XXX in of and flow for year. fourth million generated quarter million cash full

our period, guidance the to of initially was as free ahead range XX% well percent of to of a two-year flow XX% of XX.X%, XXXX/XXXX range recent of our cash the and provided. XX% XX% ahead For revenue revenue,

XX% to increased due business reminder, we for across of also the as XX% to XXXX/XXXX two-year the board. a guidance recently well range As to strength the ongoing period our the

XX% expect to cash flow We XXXX XXXX percentage range two-year as of the revenue as a period well. to in the to XX% free be

for to previously of debt. as cash as revolving well we billion new credit discussed, reduce initiatives as free As acquisitions and such higher fund continue line to our $XXX and product flow coupon investments use

cost of the We also continuously on focus reducing our business. financing

were Net XXXX, proceeds likely successfully read a January covenants low the rate. historically $X you've completed bonds. repay in on $XXX as $XXX prior $X.X finishing revolver, total at now X.XXX% [ph] interest of October have $XXX to our XXXX million drawn billion debt offering quarter As notes the used X, same with due million approximately our senior structure TEGNA rate our with We million bonds XXXX under approximately and of of our of billion. debt July

full Now, quarter to quarter ahead first the we're results, an term metrics. effort providing year turning to XXXX In near again and help several guidance our financial guidance. key forecast

to For we revenue the company expect in first total political excluding the by driven factors low first be XXs, When be up mid we expect mid revenue, the quarter, growth previously revenue quarter to to XXs. discussed. same

reported content our first to From to higher new acquisition, digital. and increase driven first investments low expense fees quarter mid expense as quarter in our operating we by perspective, forecast and in programming XXs, a

the range, acquisition. Excluding majority which programming, in are driven up of new the is XX% high forecast to expenses by be the

our a revenue as be a up and prior based MVPD trends basis, we also On full XXXX basis, year terms year guidance, on reported refined further subscription on expect In well. the mid renewals. our we've sub full of of XXXX timing outlook XXs to

repriced positive very our collaboratively MVPD work and and proof flow, strong of the well our Spectrum cash both subscribers XX% to were quarter XXXX, future. of you which end This major free may began in XX% be that another agreement now have ability our with was As partners is first complete through successfully process repriced the successful our the which quarter, drive to in which of closed into agreements, revenue by fourth a with scheduled to read XXXX.

as mentioned, affiliate into relationships into renewing Big strength the we year Dave agreements with and XXXX, beyond. enter clear CBS our well the And, our Fox and in visibility after of Four XXXX

months. that EBITDA Master transaction in system well support flow XXXX centers be of the expense bringing year include and functions, completed free support, will initiatives monitoring for this and for underway function. streaming all and improvements shared financial processing past as have of cost implementation our Control continue companywide quarter cash reduction in significant automation will and year-over-year efforts been traffic which second Beyond back year, office this sales service consolidation, as These from XX growth resulting to also of full reflect

million key the million, $XX As projected million Amortization is $XX in XXXX a range expense Corporate range the below reminder, here's now overview the in of range an $XX reduced the our to to of to Depreciation $XX the million. expected prior is updated to elements. $XX of million. million due be of expected million. guidance Interest estimates. of in be million to our be in is to range of to expenses benefit to projected $XXX to be $XXX $XX our refinancings slightly

million Control expenditures both platform, traffic as approximately well further, as well are $XX We $XX well be new is Master repacking, our to such CapEx implementation, of projects, comprised range expect which our CapEx non-recurring $XX of and unpack work as to capital underway. of includes just streaming which that ERP key $XX million. of of as in million million $XX to And million, the in for non-recurring as development monitoring this

systems monetization to and these only to in to no but not at to consolidation seamlessly operating us continue integrate future, The reduce cost. new incremental significant costs little acquisitions of also the allows

until previously we in no rate this, delever year. to be XX.X% we share XX.X%. tax is to additional And this disclosed, effective as beyond The planning currently the range expected of later we're repurchases

framework to shareholders know, return strategic with capital profile balances our capital through and growth a our a TEGNA deliberate. through organic our accretive sheet, acquisitions, dividends desire strong to disciplined you enhance growth to of As commitment and follows allocation balance that product

value. with capital analyze dynamically always maximizing aligned our we allocate tightly opportunities are highest to we offer options Capital And regularly the value. shareholder long-term that returns allocation to all as the decisions and board generate

As multiples Dave on below at participants in market last billion The industry consolidation in we XXXX. sharing X.X or noted, or times we transactions a adjusted very acquired were times closed approximately tax in X.X $X.X were year basis. of active

adjusted are $XXX revenue a only of this. reflected of national flow And we and in $XXX million annualized basis. our achieve of of $XXX EBITDA points free our million, two-year as million these results, use As approximately average provide room expected on outlook, transactions cap to three to cash

both track strategic EPS transactions and free anticipating. Also, several immediately be capacity fit. these flow our all opportunities accretive of within were are accretive a and months cash than to of leverage close, well earlier on nine reflect are To to months financial strong

discussed, to we of that for industry regulatory constraints. capacity actively our us ample assets continue to current are the at cap strategy buying to our previously end As efficiency pursue within on we power execute of the have fit and the

a of As being to times times. leverage to end is recently cash increased free quarter to acquisition, reduce result of decreasing currently later used that leverage temporarily completed fourth flow political debt, the four our year. this Accelerated at X.X net approximately

refinancing, the to quarter increased incremental a further we've Beyond already $X $XX as million debt in positioning us providing and benefit retired already, billion firepower long-term consolidator. an this

the just perspective. into strength ongoing business put Now, performance of our

While due past political our made a future the over result decisions within at beyond the the exuberance to about even this XXXX we're broadcast collocation we've there's more three business cap year the understandable smart of years. of sector as a advertising, of excited lot TEGNA here

forward. as operating reflected leverage, well investments strategically with as our which Our transformative of us in the throughput and going are clearly operational is providing in financially M&A, excellence enormous business

M&A floor additional exploring for into just while assume give actively into current Keep in political $XXX several end, glimpse XXXX key XXXX our that remain any more there's that XXXX. million in than early revenue insight engaged opportunities, not guidance or let any preliminary financial To metrics. we you consolidation me further some mind

revenue newly our high year-over-year cyclical the creates by great compared and acquisitions, only strongly comparisons, growth very strength And [ph] this. to XXXX these driven while For drivers rates, in XXXX, renegotiated what's Premion accretive even confident XXXX, growth remarkable mid in we're top-of-market is retrans XXs more growth. ongoing to not of revenue

we Given AMS all, revenues XXXX, will revenue XXXX the performance, and projected subscription revenues. that but this these strength of forecast political offset

combined As future for a basis, trends, revenue visibility a than total proof business and on even XXXX/XXXX result, recession cash political stronger a and providing XX% see into more improve will results flow subscription revenue two-year ever. of

periods revenue million the by This cash margins, the Likewise, XXXX line EBITDA operating retrans well in XXXX/XXXX to also as XX% already XX% from as in from savings cost for incremental with are $XX as agreements reflecting expected metric of awesome expense subscription revenue impacts initiatives be well. of increased the free roughly leverage margins to into and really this operational driven our of the of have flowed strength the AMA, XXXX too, we built a ongoing our drive performance. monolithic will and That's growth flow that business pretty underway. generation benefit

To XXXX, our context, continue during provides as to to given four the our give business to opportunities. invest XXXX. seller strong by of initiatives, significant leverage times in of pursue delevering acquisition shares, for pre-acquisition this opportunistically previously further below, or back This start and new firepower equally we we levels discussed our repurchase

points we've M&A with And efficiently continue on discount as a done over ownership the to under just enjoy UHF have we FCC cap capacity the points or to and in currently accretively past XX as three sufficient reminder, seven years. that invest front, than and below more the cap,

million eight $XXX to hypothetical XXXX/XXXX, debt shown date to any you. speed million capacity the and to cost recent any constraining as revenue without remaining fourth platforms, in of for work add our to roughly and even integrate deals, organizational transition no A just $XXX to multiple calibrate a our systems EBITDA financial cap including little adjusted acquisition in of all or during and ease, our with new acquisition of quarter allows million done us way. And the in would XXXX. with streamlining to similar in So space approximately adding annualized the times, in XXXX, $XXX buyer math most characteristics

drivers our an operational to our strategically the acquire our key summary, political, and the future. financially over excellence reflect beyond the and the past shareholder business ability strength of years transformation TEGNA In three impact of guidance for Well our and XXXX outsized strong predictability these and our into both wealth into and creation have metrics assets XXXX existing integrate portfolio. on

I'd turn Before over like Dave. open it to we questions, up for to

you, Thank Victoria.

Q&A, to we to today. the I letter refer you January not of begin to our we discussing topic a be shareholders, number Before standard including XX which topics a want addresses general, will

ask company's we to keep outlook. Q&A, the you today's performance For that questions and

we Operator? will your questions. With take that,

you. Instructions] [Operator Thank

Karasyov from our Cannonball from take Vasily question Research. We'll first

a you. Thank morning. couple. Good I have

do far mind ad how First, key giving this you pacing in update us so categories are an on quarter? sales

is renewal And on second I you had question then that the the successful had.

this? please on of as little drivers step-up? the historical dimensionalize to and how you these deals that escalators like And for compared new to things in give did first the duration years that, could anything of detail So, year you your terms us us deals useful then a third think more would be second, and

bogey the Sure. because with the the Good Fox and But see -- and this not on number good. which continued let's deltas one for year have lot Super pacing we on looks we year-to-year. we've which don't our incremental -- stations about from so us even on And four advertising sequential of year a morning, is was improvement pacing biggest $X an it mind have quarter-to-quarter ad year-to-year, have last Vasily. quarters. for Bowl adjusting keep for million a Super last in for we now household, Bowl, for Yeah, incremental of pacing, quarter CBS in a first to that's Fox start sizable well, pretty

up nicely; is us travel services while category for and last and Media had a very in entertainment flattish continues tourism continue low actually which advertisers, we we telecom our up, large couple base up, call up but and up strong category. up, banking improvements advertiser in that them single-digits that's is in and first up, aftermarket driven Home and we us, optical is is is part year for up the Premion, dental, in to expanded Automotive down retail really base that aren't very nicely. auto continues by quarter, a finance expand that's whale, a this be and for that slightly because time but lot, about a in to auto. medical

we're up pacing -- the Super the the for adjust adjusted better. it when for even advertising. with even Bowl, on -- when So, Actually, Bowl. and very you pacing pleased we're outlook we're Super you But

the of them As our I think it relates got to renewals subs to your I've questions, if all.

So, ups leave it significant. the that. I'll first step are year at

think are is -- commentary have Four very in stations. Columbus I referenced lot Indianapolis bit just very big even more BNS and mean M&A. stations KFMB San force of of they're and strong, stations in MyNetwork, THR few What very a a in script, that market, large important the in just Big a as for of Diego but and of in I The we my as not them. like portfolio stations CWs like we And and that also are -- added very we've very concentrated through benefits by very MVPDs. a that strong

come appropriate negotiations we of strength. those So, position from to

very, step ask you about, ups very strong. year first a The

generally about the because and of a to very double-digits. move in of I've calls, direction still, Big there's still don't deals previous our in Second intentionally year up Four affiliates market talked in viewership the and general. we deals, the long step vary. as -- between marketplace third overall cable continues do gap into we Duration appropriately the But because

Thank you.

Alexia our question take with Quadrani We'll JP next Morgan. from

Alexia. Hi. This Karnovsky is David for

there your potential how at for do are that see think exit you pipeline plan large out, more have four at deals, might targets? laid that for groups station that you in Assuming do smaller available or look TEGNA time M&A the that Are the point? to leverage you've you still

answer the this Look, way. question I'd

are And Victoria -- the sense we under that today and discipline that We know opportunistic I that for portfolio all we and the on metrics financial the players are outlined we in make industry. and -- on our other calls. have deals in

can small the the it's cap, methodology be a do under -- So, which you if not not the academically, Victoria maximize space will ownership every about think stations ownership we large we UHF we've all have But bought cap, or if under we it's has before, we XX%. EBITDA, point talked given underneath criteria, our also want mentioned all to both.

that That's those network the with it's types criteria. criteria. most all criteria of important all -- along location, affiliation, types those So of really

Okay. this And this your then this discussions but with your NFL the to ask into in be is may distributors? Is partners rights a go little may something television up coming year. early for that given negotiations point this either question, network or at

do do on the NFL talk but much very network so, question, ask will didn't about broadcasting. me And stay you partners time. strongly with believe the We our you I'll the I it a give me the all answer to ask question didn't

leverage, that the the with the may up part be being future our There and a a games be brought subs as shifts has very portfolio than thing. And network some end confident there we is highly affiliations, going in the strong NFL end, negotiations be on our But good feel which very a that shown NFL our. of will confident of may of given be in mechanism. will between I'm the day, portfolio ever I'm structure. will erosion benefit of forward, the NFL while changes the our the be networks, some the more the probably on broadest into possible from at end players distribution think digital doubt I cable gets no big

Okay. Thank you.

take We'll our next question from with Kurnos Benchmark Company. Dan

healthy think full achieve but you for the us pro in that forma on either given here. higher help us pigeonholed a QX Bloomberg order that giving the either frame about thinking this could Obviously, can bringing political a year. maybe pretty at than is of rather of at sort political morning. know, look up Dave, QX and if Good I you're history, topical. unlikely or Thanks. to be you number magnitude Great. the a specifically, variability floor the basis year, other Maybe least to directionally into about race and

guide, year, to this robust Yeah, I as is At do you I true. for be our remind what's to going quarter. no the But obviously, full need up first point, being change to a very it mean, Dan. still going end to

as even other is loaded all be third -- the it will will total the especially cycle completely the half -- election revenue end the into As to and every your back in fourth. of it

actually moved this pull little second from our bit see many first the second you of the states a up, year, of for think forward first I the So, the may quarter, because primaries quarter, quarter. have many a through moved so

So Tuesday Tuesday alone, Super of of participating And most a half -- of participating. are between in other whole March, will our rest markets be that. the markets remainder our of then -- Super us

So, I also first than I percentage years a be be on more basis. first I basis, in robust without very but true level think think just quarter spending a truce in past will you'll would strong. see Bloomberg, mean, even a -- very, quarter

obviously, to And additive so primaries. has the Bloomberg, been

he'd same money have season. the things Does the think context election on don't became would be does think on own, about stays Dan? he still a So that think question, race answer or same if don't keep the let's candidate, I the forward, I that to he that his money is of is one from small Right? Bloomberg to general I going would think have but lot Bloomberg primary Bloomberg good on I spend the up thing the impact having your it’s wouldn't near the donors. getting in because in Bloomberg a end imagine thing

color -- thanks guys on Yeah. No, the for helpful. that's really then And XXXX. all

when basis the can XXXX? And as margin forma -- you gave Just that pro that was on I'm the an you was a us growth of flat housekeeping give sense assuming quickly, with reported reported. Victoria, you or number, gave just as

And for on just Dave, your us obviously help in XXXX, NBC coming can of just of up net Thanks. frame retrans? sort view you

in but neighborhood, of as different. forma, same reported in terms forma largely the of pro -- not as margin materially pro terms In the so is

a have NBC will idea -- with revenues our by encompasses we grow up for XXXX year. of we reminder on the is good I all certainly nicely. look -- subs that but going we new our up below revenues and very And is right? Dan, ourselves are so think very to discussion, everything will yes, will paying have continue net retrans next NBC NBC, reprice the XX% their corpuses negotiation we model will of different up the of so, are -- what we'll end reg XX% where too, on will have line some -- and shares And retread go end bottom the

the Got for Appreciate color it. Thanks guys. it. all

from Wells with question next Carll We'll take Fargo. our Stephen

of or A could from negative kind what your revenue to you. or I mid you questions in And got neutral MVPDs? discuss if Thank the MVPDs that on revenue. wondering your was growth maybe virtual term? subscription growth that subscription positive you Is you've this to have sub couple first, to year? declines XX% traditional the longer shift revenue subscription baked

more seeing cord assets? these distribution we of And a in at a on to Thanks. And end as bit of viewership alternative models, businesses? driven just you kind your a your you as see more seeing and an OTA it, auto are benefit you are cutting mentioned and it seeing do a Premion, so of shift increase to from relates pickup back other

subs. Okay. I'll start with

So single-digits. subs low been down to have mid

on it's for not Losses done Virtual end are month job Our net where by two modeling one traditional and positives literally in subscribers, in up finance offset subs over about by team virtual. last a has talking one going years awesome I'm an replacement. to the right?

rate. out marginally I about around half of think current numbers the sort there is

actually predicting, that optimistic bit somewhat optimistic, improve. but to conversion rate a will I am that continue little not

out that cord cutting traditional So now another channels I least viewers. it, a to go MVPD will nearly explain becomes television seek make -- -- a now older loyal as to you're they kids I probably more -- more cetera, et at service. how were cord viewers and as the basis do and more come being But virtual local think their cutters think to home dad et and to think have see going virtual sure easier, users viewers on mom early I Thanksgiving cetera, the who forward more the commonplace, the

single-digits -- acceleration to So, through is with that some mid what modeling that we're moderate -- we're year. the low

model. So, we've into got our built realistic numbers very

you're OTA, to relates it As right.

of homes it increasing, Nielsen completely happens. an there. definition, kind lag to a us when viewing less But Right? is don't homes right. OTA, you're channels captured I goes home has by So OTA for that increases broadcast. of when accurately viewership has think by When absolutely OTA it's a all they're and the So, share

could very year. I for maybe pace us a wondering programming the then the your give maybe expense follow-up. you was much. quick of growth if And Thanks Great.

Give minute would, on Steve. that us a you if

Sure.

pace XXXX? the from about talking growth of are XXXX You to

what the or programming in that period? of in quarters XXXX looks terms like through like like reverse maybe Just look compensation what expense expense,

all going we to of variability until until at Yeah, on be the other going to -- will won't subs quarter. not year, the to related vary much not much the -- the line. that that be actually because in aren't And they're we renegotiating top be there back -- subs They'll very don't almost all. half be to they're going renewals the fourth

that's we've time seen change number. that's in only the So significant that probably any --

you. Thank Great.

We'll Jim with next Research. our take Goss from question Barrington

in wonder tend isn't political Thanks. tides I've it's your With so One normally if the also. to few one advisable market talk that emphasis as the to you to much political. maybe I dominant, I to Texas, state. got that. exposure warranted think your necessarily related that tend state that a would about by that -- turn opportunity

QX might third this it Those and more but political, And think? along net with the would, year, bit than early sort in also quarter balance then out the in bump are Olympic QX a little do of starter. you the after conventions political the surge

Okay.

-- yeah, those take Jim. me Good Let morning.

in those take me Let order.

historically been state now in you is spending starting as the has space so significant primary. in state, has this been know Texas a with in race moved now political And especially huge generals, has some Texas it's on -- first we've senate for Texas change state that Super spending primary XXXX. because of year, Tuesday right, every and but So, -- a delegates the all, matters, obviously with did so that primaries, not exact the date historically, republican seen is there

running, spending. in will seat house so of their are some those races and some there's the general, we -- not us, some and contested a But have republicans races And a election I be races presidential -- have for not seat have for there's that of modeling general. a As left it'll we're and have in Texas. house contested big lot for spending will -- markets significant the lot house

point, state. is in back it all the by that it the by strategies up changing of XXXX. that one of make obvious will will be to one to a in of the beginning we the -- And behind purple of Texas from going heading And the demographics Texas when -- accounts, bought below XXXX

that XXXX, advantage very So XX XX% large, by we you're right of to take will -- and presidential state the think disproportionately. a could be state with spending in exposure

we on than acquisitions. not as On once think, were. recall heavy up nice Jim, We as are I though a Olympics we us, the that the Olympics we're more once through -- Olympics, diversified NBC bump yeah, though the realize, our even were were for

ABC market. out and gets get large on So, where CBS, of in taken for especially every markets the added, money dollars stations, NBC station

So, it's a negative.

a it's down watered wash, little not of basis. a there's gets bit -- a kind a the percentage So on but incremental

evening will political that profile frankly, political, a of bit. the it's So right? lot high get to so obviously, muddies of kind place a quarters, and very it for Olympic -- to the be, the advertisers inventory out water no, I -- a your Because little question for used about

basis does political will even both gears, bit on Olympics yeah, in in consume little of out quarter on the fourth might a but So, political fourth still completely and the the amount third. third little quarter it Olympic bit, Summer a it delta, still a real

to that And be more acquisition specific synergies -- you've help Are And could benefits to for capacity this properties that. aside or you been any terms additional the additional gained extent in potentially acquire to there talking those scale? about you acquire? from Okay. thank from and your capability Will the significant to properties. of

in would the bigger changes Nexstar since -- mix gotten the larger has markets, need that into change to they And of acquire in Does competitive opportunity? terms aggressively. acquisition that though, situation real

second being larger your no, some doesn't strategy opportunity. on question, markets our to Nexstar Yeah, or M&A any have impact in

good our a achieve, obviously backend scale pick We about we derive they in we're but the But right at no do to not opportunities at do as our well to one look to all to value, any disciplined couple time. time. all, the think And need We're need moment -- scale be the as to going to do up of not -- do to right want record the at we achieve shareholders. -- right works right? for for acquisitions efficiencies I we opportunistic us, as us no to can M&A to We're right obviously, scale, something our pressure prices lot continue has to we opportunity well that to our and the what But to shown, so a help continue a how additional and very given fine. hit numbers. assets does don't scale of comments be acquisitions as need the bring matter. we and already any --

meaningful duopoly with Okay. to economic regard with key opportunity And probably the lastly, benefits. is FCC, clear

undergoing along move if underway, over? prod you election dynamic anything a the elections? is take before -- at stage anything can democrats to quickly have there this lot course. as to be that and need We change Do Or of done the

question, Yeah, no, very good Jim.

So or It's court. right? right? Philadelphia two It's the problem, consolidation not a on force, of court of duopolies in problem. political an the issue issue, big actually not That's market that's a FCC

things you a tough was a both I that's on that topics have and is I So, on okay, sideline think staffers that, while, and of to for historically, been and FCC are side -- I the certain maybe those see time, the outdated the issue minute, on FCC at so that the the on think judges although this on FCC capital these our realize on number at hill nuts, starting to get rules in but starting broadcasters. right, younger point on ownership both a

hearing definitions fungible. their digital the backwards all that on the even participants in went video in brought video of a world, public was, it. bit about that cable held little actually hearing all marketplace the the And floor the And is DOJ broadcasting actually a the the agreed now what marketplace and when to

competence the the than And both, FCC will are I operating the DOJ take and have more the video marketplace. care itself. some outdated time, So, that of an over with definition, DOJ

ownership extends frankly, the probably I would entirely think look the although prevail. democrat think House, I what there's not I'm cap, And White the there sense I'm right. clear time think the election. cap probably Trump wins prior a will reelection uncertainty the both yeah, is like. If may ways not I the changes lifted, -- again, common no But -- you're in -- which to with get

President put As would to who a to run Trump in FCC. the

be think case, able So, can hard points But our XX is, when we that. we've you cap shuffling UHF the to on consider to predict do under really noting what's I do got in that. all the ways to and some there's worth

have term to rules the So, we the don't need in near upside. change to

right. very Appreciate All much. Thanks it.

Thank you, Jim.

We'll next with Evans Stephens. take our from question Kyle

good Hey, questions. my taking Thanks morning. for

where But could NBC back Fox you a of and relations right CBS kind beginning the some of You've XXXX about XXXX. renewals scary already up saying bit next things were with in and you now? just night late your little network in on Peacock, step And a touched characterize and year. little back moving, are networks XXXX. XXXX, go and kind bit kind into the of we renewals of with us in in tell forward, streaming XXXX noise of around just the as and

already well, we've Yeah, -- Fox. already look, we've CBS and renewed

relationship that strong And with most different to answer -- little behind have the with both But we're we NBC NBC. with So, one network. and out Right? were us matters So is very them. a a several the different relations of with that's us. is each years

way value it we and way the how they aggregate the ecosystem, actually but lifts important an rating they're delivery in them. it. to produce and we're son overall We So, their the they've And entire executed to their think important it on us, at enormously. TV look the is index. of football stations against asset the basis them you NTI sports our best When

with that have and very strong networks and well. feel important we given as good So, to about us second our we aggregate with relationship the our NBC CBS a provider largest is most especially relationship particular

ecosystem? existential ago not that of views Right. low kind know, everybody is broadcast falling around to the threat you map. on threat, low running that kind seems Aereo, was the It that it us pending off is new caste your the was updated was other of originally absolutely of give that long or Could afraid like you caste any

many going many, and away Aereo where see I answer for my out last donations, be scenario others. you know, have don't or was thought been I for to I dollars become regime guess to to as or question, that caste whether it heard, And broadcast talking they're is think for they but our -- Kyle, they're low we about non-factor turned that no see in we the business, in of haven't a -- and space, just -- mean, they were I time predicted -- call, the preparation threats even just lately. in consent nothing, early it one. my dialing the we the to go was, theoretical going on, number retransmission just I they're existential to

and had wondered Right. trends Well, kind bit differences crappy in past size and small you're is about large you. thoughts updated any on Last what counts. versus retrans, Thank sub your markets you've products seeing away. on something question. sub go usually your you market in a of little the talked if

out for sort distinction quite large really the -- much and that there is -- small between Yeah, we gap not saw out evened portfolio of that evened pretty that's our as companies. between there's companies and as probably heard you generally, the large much, say I really from satellite just others. difference we'll is between difference -- cable significant MVPDs a mean, large

Great. the update. Thanks for

last We'll take Doug Arthur from question with Huber our Research.

they is ballpark have -- morning. lot acquisitions, it between missed the in may been a to going in But is $XXX the and Yeah. million I in release, has Thanks. $XXX fair million revenue is say added number? somewhere that this on the this a Victoria, quarter,

you, forma I got it's pro financial our two-year we've $XXX in -- we XXXX terms within what of saw out integrated is get going them not I was a basis. think appropriate of actually million. didn't a And revenue about and to to -- have systems break But We're additive you we $XXX million. be on in it today. is showed basis that about -- but back EBITDA to think it I'd -- because And ballpark, all terms

XXXX. pretty So, in I think for number terms of that's clear annualized

in We more this the no time. questions queue at have

you with year today. by M&A the our to ahead Thank we're and time against conclude, organic execution taking To right. and strategies call beyond. the this the listen excited to and for opportunities our All thrilled

XXX-XXX-XXXX. Thank If cover today, and unable great to you you questions to at additional again, have were reach we day. have out a John please Janedis

This Thank your you participation. call. includes for today's

may You disconnect. now