TEGNA (TGNA) 8 May 242024 Q1 Earnings call transcript

Hello, and welcome to TEGNA First Quarter 2024 Earnings Conference Call. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to Kirk von Seelan, Vice President and Treasurer.

You may begin.

Good morning, and welcome to our first quarter 2024 conference call and webcast. My name is Kirk von Seelan, and I am TEGNA's Treasurer. quarter CEO, TEGNA's and results first TEGNA's year and Heskett, CFO, and President full review will quarter and our Dave our Lougee; Julie provide Today, outlook. ahead performance and to open we'll questions. Hopefully, the press call After review that, morning's the this you've for had opportunity release.

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

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

reconciliations We release. With provided comparable let GAAP to in of have Dave. the that, most call directly those measures the me press the turn measures to over

year in cash and from And durability the confidence increases, have of to our morning, of We million dividends. XX% million sheet. of Octillion first everyone. track a XX% phenom business and with $XX progress XXXX release, a achieved regular our toward more the good on shareholders with our in to teams, the and you to the acquisition million turn our and then press dividend. in the Board we during This builds dividend guidance and recent ]. Also the $XXX of this million our pro and has strength balance early made rights repurchases returned over we our including for quarter, metrics begin approved for dividend summary $XXX quarterly quarter. to the last the our and commitment reflects share [ local than call Indiana Julie and Premion, detail. TEGNA into closed key the free through walk I'll Kirk, you, Clark our announced results highlights flow financial increase Thank in of with deals return morning's increase rookie sports capital multiple record our $XX Catlin more significant we local completed in including in it integrating fever as began

savings on We'll these second to transformational initial business As to additional million $XXX our continue exit generate expect now operating announcing we our initiatives we cost shared as we going benefits improvements million realized roll we XXXX. forward. progress call, our of investors be update our $XX in underway. with With to transform Today, model to here that sequential quarter to between annualized core the as last we're are on out initiatives initiatives.

Julie but performance. performance will a first cover greater highlights. financial our in to detail, few quarter Turning I'll cover

earlier, and landscape, overall access First, remained premia, platform local and key sales marketplace. our But industry-leading We connected its first tools with already guidance seeing and improved as affects has improve We're has meaningful to advertiser leverage challenging local We're market. acquisition I the beginning advertising it experience across improved the to especially continues that of better to our technology portfolio advertising to with local metrics. success. Octillion. further OTT improve both across of Premion's positioning that Premion's now workflow mentioned of products. We're as Premion. us National quarter the in we achieved seeing core media at serves signs TV the

growth major for So positive national loss following account. last by which to a we're encouraged quarter results first year's returned Premion, of

execution and driven expect the local. throughout in by on year. QX improvement We sequential continued

will nationwide Georgia, than Michigan be appear Arizona, the competitive of specifically the past. Senate, presidential about less Turning footprint. X Pennsylvania, those race and Once to feeling of to likely good in to X we will political as to there spending X states, very advertising. them. trends the be. relate seats same the down come cover that's Wisconsin. In again, they North Carolina, where in states, We're And our and the the

and XX their likely a in he and governor, races based large significant spending the we're Senate the first He's in than our very nomination, again, for we currently are front Maryland we we our are be And will very that strong. midterms, Mid-Atlantic, have have record the races the the them, for because governors nominee. seats X classified at of the political to it's footprint because X a is up long reach states. There's election Larry to here races spending is only have Georgia, here currently that X do competitive. of including markets but a control and exact, the in funneled Maryland and the Of to levels assuming North years not covering is Republican Ohio, will Arizona, be to and respective highly though races which we competitive moment. With grabs moderate, very senate And a be we gets seats even row during ] the competitive, unexpected call Senate the few competitive, Michigan race, contribution a the the spending seats races Carolina So only competitive. for time, in and the will seat these think [ Hampshire. in think popular very, presidential likely likely former general New Hogan, very revenues. Wisconsin. And less time

sport conducive we strong in to spending, political. one The a enormous like to engagement. I'd advertising time on of we're in short, now a dollars. And political NBC of of CTV all recent stations levels expect announced. Olympic share context in programming to great and little position highlight some pro, Summer to important with of a more live the the viewing, Games summer OTT and including largest take in So deals we've share linear more zone portfolio sports for tailwind this a and Paris, very

learning local for model. We very cases, deal increase recently many shift League of only well that happening the being distribution Kraken, ] shared on last of are Rein women's a pay sports [ stations our of with the the positioned in and being huge in Hockey our markets currently the pro in in well of on TV reminded I sports local As call, a portfolio benefit and strong distribution. Teams the reach soccer big Seattle National announced as the as brings broadcast to and league. Seattle compared are

as signed markets, from We Catlin distribution [ through XX Gray, exclusive in done time developments and sense. fever broadcasting the audience including ABC explore Basketball the and for on that Men's announced and stations coastal the deals Championship as deal with We're date Sinclair, Rapids Rookie Iowa and morning, to Moines than broadcast Pro about Indiana our we with of ready difference. also Cedar Clark sports teams broadcast XX as the watching Des [ the aren't Superstar, make Wigle the a are games announced that Catlin record-breaking television. To with fever that Diamond cable. are including Indianapolis market ] we've recent City in of and it Clark taking viewers additional [ ] Quad who WNBA's not Quad on Women's final additional ]. This distribution [ state home bankruptcy closely teams ever audience RSN. Obviously, our game our brings. to stations. Notably, and court well the NCAA additional opportunities deals earlier the and and The that the point existing City part Diamond just recognizing first game are my stations, notably, million Calin featuring ] was stations on larger the broadcast aired we've to

Before tireless I turn it viewers like over I'd for journalists. to across to their dedication serving our environment to for recognize in the very and country thank colleagues Julie, a station our difficult

prestigious nominated Award a were for sexual As nationwide the and contractors work into transporting an asset a inmates by long example, in Denver Peabody over for our stations investigation Minneapolis, private widespread Louisville recently distances. on

remain play. the injustices the today, so we that, as to serves trust vital holding the that turn role marginalized that untold, more dog doing the watch I'm the groups. making and stations role unaddressed all important. and many journalism so let serve investigative our them corruption, account less stations Julie. public power to uncovering players of over of stations proud Without it of communities voices would critical me amplifying eroded. With There's Our

and everyone, morning, To I initiatives cover morning, financial out closing before you a for capital our an results start this TEGNA's then execution, thank update with joining business of transformation allocation review Good will us. our guidance. and on

of million XX% and we XXXX a this plan, to February time X.X nearly our TEGNA returned repurchased of today In As are capital shares. first in over of regular a to in reminder, common to quarter our stock report cash start that with adjusted $XXX shareholders which we off and frame. I was retired between shareholders, to total commitment. the comprehensive and approximately million. returning new am the flow strong $XX million first our Combined free a pleased cash that included allocation XXXX to dividend, XX% year, commitment announced on quarter,

we where want returning to shareholders our promise achieve million XXXX. to be in $XXX are of to We

last these of completion million million quarter, year. program of announced shares of quarter November or settlement shares, shares upon possession also $XX that our TEGNA $XX During the million in mentioned. The in occurred just took the million first the incremental X approximately to launched is previously accelerated which repurchase X.X share

the declared our to a $X.XXX share. In share of addition builds Board our announced on dividend per our increase XX% we to just That year. repurchase last activity, XX% quarterly increase

return and flow value actions commitment creation. TEGNA's underscore capital share durability use repurchases to free both and through sustainability and Our our dividends of the the cash shareholder of

take to debt bolster for on position in continue against capital control outlook investing the TEGNA positions quarter, and business, acquisition important uses an organically greater technologies, Octillion we further and returning execute of to as first remains both Media our the inorganically maturities. of new expect Premion return and Octillion that better development. adjacent framework by capital of While that To we preparing us in our to allocation we gives go-to-market closed key pursuing acquisitions bolt-on for growth shareholders actions to the future capital for product story, and with continue growth our part business. The end, Premion well.

our sheet strong Our ability and free that is Xx. and industry-leading gives below maintain flow us shareholders the differentiator cash at leverage generation a reward the grow business balance to

transformation business to turning Now initiatives.

to to be we million to will initiatives As and as business directly $XXX expected previously transformation XXXX. This our in outside completed next over savings. of target and operating Premion. Dave X expense core underway other programming generate starting These business $XX are annualized exit generate mentioned, all the million and years reductions expenses initiatives transformation announced are

We growth to Premion programs, and of improve in the XXXX. And expense benefits initial run of some our quarter-to-quarter. outside all sequentially will expect these programming quarter expenses second gain from rate initiatives other prior These will X-year adjusted regularly we our our you provided cash cost reductions coming keep previously progress guidance. Consistent are already the flow informed included over quarters. in track our free with and

performance the our performance. Let's now with XXXX results. our a My of as financial focused our visibility today a provide consolidated TEGNA's look as take of well non-GAAP trends comments financial drivers basis you the drivers on are on to in primarily at business quarter first operational

You due partially to lower comparatives our first our can release. Total find political of for and X% higher data quarter was subscription prior revenue revenue, in by period primarily reported company offset down advertising all dollars. press year-over-year,

January, of revenue by quarter partner increases. to due temporary rate contractual declines disruption in distribution offset year-over-year, subscription with was primarily a service and net down First X% the subscriber partially

not quarter by revenue Additionally, of down benefited digits. first affected absent was is onetime in a that XXXX. recur adjustment the year-end Underlying did subscription the trends, the impacts mid-single year-over-year results our XXXX and comparison in

We XXXX. and in XX% of traditional year our of subscribers this end the expect renew to another XX% at

X% and year-over-year. to Marketing Moving was Services. down AMS Advertising revenue

signs advertising first performance and advertising trends categories. softness, show strong in finance continues services, continue banking positive restaurants, the to resilient including of were Local national quarter While show to in momentum, automotive, and and entertainment advertising

further Premion television turning Premion. selling underway advertisers Octillion and to with will momentum new continues to The Media gain converged Premion advertising linear streamline innovation, drive media and Now is and processes. in with a by buying products marketplace. local streaming of integration

local returned capabilities, Premion managed and approach programmatic growth has agencies to cycle, and the year-over-year, following a loss revenue. measurable positive enabling multifaceted revenue up growth that programmatic election grow rate The expected Premion's total Premion's offset large expanded digits account. Premion's was For to of national leverage revenue, by outcomes. national single driving of its the CTV executing softness last XXXX advertisers has by strong throughout revenue to sequentially selling and is in revenue low campaigns to service driven year's year.

Turning expenses. now to

slightly of up the service operating For were distributor. first $XXX quarter, year-over-year, disruption programming compared of with quarter down to expenses of million partially a driven non-GAAP XXXX. that expenses were Notably, X% by

growth to earnings other said reverse primarily due to of debt be the and we what expect variable at reverse of fees As for flow compared going of million. best paid comp fees up and the Net quarter compensation The million, We a X% the tied was negligible were expenses call, cash majority our $XXX free total with of forward. ended XXXX, compensation $XXX EBITDA we are leverage for $X.X of we the to quarter cash X.Xx. reminder, to expenses. subscribers. All generated operating Adjusted the and ended quarter. $XXX billion adjusted last quarter at million

are the and continue second quarter in to allocation We priorities shape with in excellent capital our beyond.

forward-looking our to Turning outlook.

$XXX including of X-year morning, million all $X.X As free we we key our billion. year flow metrics, XXXX full to cash press are this reaffirming guidance guidance adjusted our noted in release

robust and portfolio supports of our political our favorable confidence Summer highlighted, well Olympics As year as guide. Dave environment this the our the as

Octillion With an guidance elements. updating of expense near-term In $XX year release I'll Please help be provide a to $XX quarter the guidance refer our range metrics guidance effort XXXX the Media, press follows. ahead our acquisition results, to see are as million our forecast million. full we all amortization to financial to between for and

sequential quarter, We This low partially lower see as quarters due our your Cox, we improving is note subscription and to year-over-year I, Chief We cost first of reduction take and second down to ad as Digital efforts. With Vice from compared result expenses of a Growth company quarter to quarter transformation we is operating in percent flat expect that, to revenue, continue with please President turn you'll forecast trend year. Dave last the total improvement future in mid-single-digit AMS to Officer, a offset as and this be questions. Q&A, and here political be higher to by dollars. Tom second revenue Senior

from with Company. comes question first line the Kurnos of Dan Instructions] Our [Operator the Benchmark

guide maybe I just revenue the pitch want or since a we on disruption bit especially you side, can Julie little you more? light have to bit behind a guess the XQ too, the Dave, for but feels you. in, It little unpack

a than better gets everybody bit So political a little sequentially And of strong normally should be subscription than would more political, that. QX relative you your -- QX have. was tailwind and

be color more things other can give So decline? us core driving around or year-over-year the is there anything guys you trends that could

deals I'll turn it I'll to quarter. on over in Dan, ], comment the Remember, we make though, and retrans Julie. one [ up don't have second any

had and Julie? we we're first new deals So up, are -- once the dealing so -- sub up as deal in off that quarter, until just is. base forward the a going

perspective, would national AMS Yes. business. just our the from And see on specifically we I softness, continue an say, of side to unpacking,

down Dave's So up a those in onetime is saw to revenue deals digits. And similar no you from that just from say quarter, subscription encourage projected look to first to what of point, quarter And mid-single you quarter. is into subscription are first would that there's quarter. you heard to us continue to in second perspective, aside rate second run only then I continue

at that with quarterly in So to seasonal sequential years look history. and trend second prior first

First to second.

Political better though, sequentially timing, should be given yes?

should than Political slightly. first better be quarter sequentially

But not dramatically.

the right, quarter go again, was XXXX, you quarter huge. back And to variances, first if Right. again,

small. was XXXX, Second quarter quarter first small. very And was

what large. of was first happens Dan, the even, quarter and be will. Second calendars, about to with This it's second if primary one because really more half. you appears half But political

of between So the in will the XX% through XX% consistent XXXX. total. believe, we back comps always and that of somewhere half. first half the usually And XX% be is

Very roughly, yes.

just year. can near saying was I back help the get Dave, to just question. trying term. in is weighted half one this high-level I you it's ask everyone No,

You help that? deals. should reinvigorate beyond looking even obviously deal, kind should the we reaccelerate you done love about to investments how the the talk side for top really got tactical fever a set I and have guess sports growth on your just sort job great guys' I the line opportunity be Can equation. board of and some to on we about where Octillion think guys the with obviously. we of cost of

I announce obviously appreciate termination announce, can't Yes. that, because both at we're ahead do Actually, for question, Premion, it's how agreement right? we merger have back -- you we're with along investments like that our any the ourselves. And going just of competitive year, the ] terms said Dan, now or in [ capital as available mean, reasons, if with something what the for of But for last I in said spaces to know if -- to the in bolt-on to looking numbers, since I we right, we we get growth. investments can't recognize did of we to return look right? And remains remainder DNA, we at other sheet, -- our we the shareholders our organic balance to through

we of both conversations that like a right? lot perspective, way I we we come, inorganic organic positioned. on of to around bolt-on things that in and a the more the are So are middle from But so

Our next Wells the question Steven with comes from Cahall Fargo. of line

]. a maybe [ Would just love more bit to retrans ask little on

digit on So I understand basis. it's an down underlying that mid-single

] now. then kind a in much about in I QX. QX, consistent? And we of You reverse not is that's more variable have a as an of cadence your comp lot annual you know run ] typically Should down [ since decent didn't renewals rate retrans think mid-single I [ have digit think pretty

there? And cost Is to savings. then of transformation net anything [ cost Are the it? to is just with associated to and retrans there this. about Or the maybe achieve think one a that on missing way So out this still ]. good pencils all flattish that there I'm kind

for in weigh cash impact it Does flow for on becomes net about in and cash benefit XXXX, XXXX then after Or and think or we opportunities lastly, any you maybe for all strategy, in bolt-on on it the free for a XXXX. is at flow as So do Tom, XXXX? Octillion free then M&A go-to-market benefit there? And new mix could Premion? that see any Dave this your other

those take Let's in order.

[ So said stable question, bottom going just just for on we've to before, it the look ], retrans than forward. I'll we be as take net

not going direction with mean, comp, variable one be stable guiding other. to I the But significant forward. it or it will So a the number

], before top just retrans me let net have you a you -- question question? had the returns of couple did I a on leave [ You -- had

just digit [ bit? ] is run mid-single a gross Or things there think a rate little digit a mid-single Yes, it? about -- down could for that way retrans revenue good improve are to that

gross Steven, It's the mix a revenues. rate, a line traditional higher right. offset From subscribers virtual declines top Yes. accelerating that you're of growth perspective, at rate. The net growth subscriber the function by that of of at

now So until and yes, it's XX% our But run first we mid-single of end to which a mix. a up, the have rate, we XXXX. have an of at is digit deals that opportunity another consistent subs reprice

I'm And your is that we question, have number? Was do question? investments that hit your Steven, sorry, to expense

the with like and transformation cost that cost more It's to savings, achieve. is there a

cash So to savings and savings the run the realize to you upfront spend you rate get have afterwards. then

about to we it's free to tends bit EBITDA. or and understand not? But trying benefit flow, benefit XX cash to think lumpier the a whether that's So whether just as

no answer your is question. -- do We the not to

realized benefits flow They upfront of significant our will a be be will in cost. cash and anticipate guidance. the free not savings do We part

And happy and Octillion there. take M&A potential to I'm question the further Steven, on

be their opportunities that a Dave mentioned, with as Premion the technology a could the around we into consider. can't M&A set of about on look of streaming looking And to force. this more the at take part And positioned certainly, at to of pursue from time. company believe and parcel of benefits being you further would really and point, into again, particular dynamic as in we're of a lab those marriage around streaming things transform as But that Octillion the we're landscape. That said, feel in of any moment we sales and opportunities those be One around our is there very opportunities variety So good compete perspective, key we'd assets. starting assets and of the we what where

line Research Huber the from Craig Partners. comes question Huber of with next Our

specifically detail, Maybe acquisition, just if you side, benefit on the et you just bit my Can you technology little here? a that's would, so the Octillion give a optimistic more fit first us cetera, little what the on making question. further. about the is That's

Sure.

and think we the defensive. allows use products So that we software the in to can to cutting-edge market sense we It's our us that and I Octillion maximize allows advertising from around. to our through pathway capabilities that acquisition us to control business. It's both it bring offensive and offensive it more is inventory have flexibility already in local another yet relationships defensive that legacy access greater that have

of from us believe So over margin time, will vantage mentioned business. accelerate Julie as the of we point, and earlier, to Octillion, that allow Premion overall growth that the the improve

affiliate second ], the next, I'm agreements. think be dollars think you saying your but net paying And you say, contracts opposed those will years, on you As [ question, on X X then you'll flattish? the to do to [indiscernible]? for retrans roughly Are curious be you the my touched that,

one, up XXXX, Craig. We'd end one agreement smallest affiliate the and it's and our now only of have between

is have the equation we of set comp the of So time. side very some reverse period for

Dave, years? that's be in quite X -- next costs what [ X total in reverse that stable comfortable, to I'm ] you the relatively And number dollars for to retrans you're asking, here

in the I last we Julie is negligible, and right? ] earnings as added said any time at cost, The last call, that that in her said last call, would I growth think in [ the earnings script, negligible mentioned best, we be

not right, too, year, right? just year, You're Dave, that saying this this beyond

That's yes. That's right. right,

the remaining of relative saying what -- you year-over-year Are a the amount want will be costs rest I percent the question, dollar better more you to side, the the are little each about are quarter year? give Julie, improving sequentially, last saying Or on the my just change better talking so keep a trend you better, year? quarter guys, to understand just us for going months cost spent of And part we bit before? about the X absolute forward get will the

The it's dollars. percentage on will that former, not growth absolute quarter year-over-year. improve, Craig, about Each

comes of Jim Barrington the question next with from line Our Research. Goss

A things. couple of

Octillion for ad First, was from provide opportunity sales. important political borrow just scale you some it and us your to and Premium I wondering you you alluded might the whether how notion [indiscernible]? could broadcast if could give of that be think would that any

Sure. Great question.

the advantages footprint So around confined to business one station of key Premion is is. that it's our our way core not the

allows it races So in of footprint. outside to us our participate political

inventory So pick ecosystem. and tighter, streaming come we've TEGNA up from races And the well there, that of the over those as to tighter dollars in seen linear outside the get cascade those will dollars already anticipate markets to we're availability of the political dollars. footprint. Ultimately, positioned gets

another TEGNA probably I our you tool Ultimately, that, also next political for will not in expanded saw, capabilities compete dollars. are the we've to As those and our be has. we that they that opportunity to cannibalistic linear and would already arsenal believe leading cycle, programmatic say political additive into this

less number Another was good wondering thing that sports. with expensive arbitrage levels I the opportunity bit? to terms involve right And increasingly fees? alluded an a you could of Is getting opportunities there talked perhaps programming dynamics if is you the viewing there in I of women's a sports little that about to

Clark thinking [ the are to point, the we Catlin right? exception. the will pleased obviously audiences value like that's over what obviously, [ for very a ] ] fever, to frankly, to mean others, what acceptance in going cost of don't assets women's change the well right? And index bring is, sports the the the but question. from were bit with marketplace little that standpoint, that's marketplace and So I Yes. to just instance, current from the have Seattle of Jim, your partner That's think your a the the we're be the Rein advertisers -- but

little there but potential markets changes you dual change be maybe ahead do a regulatory This top other And in things, think maybe administration? one any a getting station thing. there's of ownership such in is should for as

that's the on I answer. think is last depends charge. in It is the comment administration what

to too. we're if change change going change until a FCC to I think will And leadership there's have administration. not that looks a in at be a question -- So there there's might in on punt there in like what administration, the be

couple of the lot insight. there. variables we to until answers have that, a of don't But know we So a

the in be meaningful Even maybe it has that really markets. bigger change getting when you've in area. advantage one would that there in a to terms seems been past, made the costs much like big doesn't be Republican that administration, And headway seem potential particular of rationalizing in and a

my friendlier, Board the the And obvious even a call Republic I time to, potentially cap fact, Well, working of in more the was years or by. some time administrations there a industry the becomes of right? say, go the opening will were my through think from an I perspective, I in have the and -- with ownership to from here raise generally said, ways, the in reasons. But in that, memory broadcasters administration cases, frankly, running didn't variety National rationality what as more and marketplace in rules the choose without some change to administration, for would a last Republican goes that Association

cross forward? after would matters, late of FCC was optimistic changes I approved the I years regulation going industry on like am. ownership The was been. should the media have right? I about change It's administration, regardless it way too timing the newspaper say in am So that

So is like I will feel I though, far industry the say more organized.

we value general it about We service marketplace provide. when that you managers we television have have station our actually the and with one local of companies appropriately greatest lobbying brings lobbying great think the power to given the And bring country. organizations across reference the we that

X-year very on say. So I a difficult some do But optimism. horizon, have to

line from Kanovsky of question David the Instructions] Next with comes JPMorgan. [Operator

This on have David. for I is Ted two questions.

and on local you're on in The my And and question broadcast advertising the Warner. NBA to potential is back half? year, moving trends rights first your latest through replaces impact on the particularly how national thinking second MBC thoughts is the about to the

comments, NBA and the and referenced the very positive yes, homes by of But part broadcast take over on And to strong. about very our far, as that we very, NBC. comment Olympic number That, the group. advertising other the going any we're on we NBC stations have, affiliate I to NBA obviously, turn Julie. are by I'll than -- reached largest so my NBC largest far,

of zones some But and time that got the stations our got and that. get overall, optimistic. we've stuff getting placement like we assuming So that we're things we've on deal, games content to -- on said, very out work

I it. ] Turner [ think losing

the for think known is, [ too announced questions service us Bulu a concern there months it raises when way for as sports raised few affectionately much broadcasters ago. now probably ] think was was the I we that

I now really how imagining in question be. And deals, with will this negotiate the Spolu we [ the calls of players NDA. they're think in what time to rights first right ] have of of being hard these into still all, a each middle

from much the for see we line positive. as net a bottom very game is is, Turner NBC, to us, moving So a

what right? we national continue very terms throughout year, -- is see to the think stations. large causes of is of local hard be it tell, As unclear Some strong the relates remember, are. to in to national trends, it's we'll and national very local I But have the

also not -- from our you publicly while than auto, any standpoint, big like reported peer have a quantity more clearly sales affects as groups some and that takes. is mean, is X X home us other stations a -- services slow that affects place there's see groups. And peer some like XX top probably more. And but where Tier little down, I in is -- that good and thing. auto things category, Tier things a puts great, that's far the some there's economic and taking that markets of We secular

a I is -- us, think will with very So I to additional drivers for mark. National think got Octillion And think Premion, question be and we've local we -- continue good.

the John Media. from Our with next ] [ of question JK comes line Kornreich

games more can good around. the you X-year I Three assume pretty time on one for which and One next fever question. the quick they is probably questions. deals, Kraken. That's because are renew

high of flow low Secondly, the and acquisitions finally, if shareholders year. free you X.Xx what down $XXX the more to going purpose assume your any future? end end? lower going the this this leverage forecast million your Is versus goes do will that into be end into X-year return around you Julie, year there cash no And to at than of the

quickly, I'll and very the I'll then and question. answer take low-end the free the let flow Kraken fever cash leverage comment Julie

would the We're that put, the to -- talking are all about length are no, deals. I going assume simply But of deals. not So those answer X-year not deals not deals confidential.

cash far the flow on sensitivity a As of into free as I things. different guide, the those would bucket couple

races vice First, extremely that have seats runoff become it's year, we've we are are seen had hot. We've and flat, had those and and seats. then competitive hot, a runoff presidential versa, that not

So is of it better, could be it political could worse. definitely one be those factors,

we perspective, execute we've making just that Second those be. cost better that and be the and sure is I trends. what range included a could on third, forward-looking that this the would talk we time would timing second is appropriate. for from the about a trends in to sensitivity appropriately bucket. And that that say, guide. But takeout subscriber is forecasting transformation us heard that therefore, subscriber be worse Obviously, of again, or believe you

leverage? And the

obviously this leverage cautious environment. very the in question, And comfortable. we're And

sheet. an industry-leading have We balance

feels So remaining this environment. under appropriate Xx in

What that? about under any Is there point going at of Xx? all

No.

for remarks. closing turn this over At like would call his I time, the Dave back to to

Thank you, operator.

been to we good tell, balance going we poised talked sheet and new about that hallmark this you operating company can again, core our of always forward. Q&A feel very we're our structure again here forward a quarter. restructure our you leveraging, of given business on We team a relative model create excellence updating the look As next and positioning about our forward, management excellence. It's things cost to operational the all as once how for in our going

you if questions, XXX-XXX-XXXX. have time to out And please reach join today. additional the Thanks, everyone taking so thanks good for to day. and at Julie And us

Thank participation. today's Ladies you this concludes call. and for gentlemen, conference your

now may disconnect. You