Compañía Cervecerías Unidas (CCU) 10 Nov 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the iHeartMedia Q3 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Mike McGuinness, Deputy CFO and Head of Investor Relations. Thank you. Please go ahead, sir.

thank our taking call. third and join time everyone, for us quarter afternoon, you the for to Good XXXX earnings

follow me can questions. our release, investor are with CEO; discussion our our prepared along At for press our will of use that Joining and take presentation in management Chairman to your the Bob conclusion an and note remarks. COO that we President, Pittman, Bressler, to have remarks, you and Please CFO. our Rich today's addition

begin, let on we me Before safe quickly harbor slide cover seen the show.

to materially risks forward-looking results During including financial discussed this call, assumptions, subject estimates expectations and in are we will COVID-XX These company's Actual operations. current make uncertainties. filings differ SEC. our of expected these in liquidity, on these with are risks based of uncertainties the statements, impact on and could and and and the expectations results and more position the that and are from assumptions detail current

addition, press year uncertainty this release, March of will due XX, financial the not full on as XXXX XXXX be COVID-XX, company guidance the the impact providing surrounding our call. to noted In reiterate we that in

over certain non-GAAP our website. GAAP And this we refer be Bob. investor available on measures. earnings the to presentation call will During non-GAAP release Reconciliations now between our call, turn our financial in financial to and found can measures or the in I'll

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[Operator Instructions].

Jessica line Ehrlich Bank question first of comes Reif Your the America. from of of

the about from savings lot a and talked guys continued benefits cost that. You the

has lately of opportunities been So about news. as recovery thinking really streamlining. to this invest you the all and are in you you've news on good been How continue path growth

-- size in versus about sequential do growth like sequential investments deleveraging of hopefully you but sheet. we'll think the balance areas like So see the and podcasting how improvement,

just this expect you release, podcasts? operating like this, more and it's What So deal to great own Is how it -- it mentioned How something a the Industries does have (inaudible) content. of? coproducing distribute it's with you the you talk about secondly, leverage? agreement about that Pushkin we are seems should in then economics the you benefits can little like to structured? the affect bit press producing Can the of the -- shows? And you'll your talk

and Yes. me the I'll start Jessica, with that. on Rich let one, let first second jump the of part in

the podcasters, on founders. think with Industries, who of Pushkin is Gladwell the which today I Jacob Weisberg, one announced are the major we and Malcolm agreement

you've biggest the got that probably want it think platform. And whole weapon you we think going gets I is does, is if podcast podcast, a best we the biggest to talent we on and what got it platform. the into podcasting, a big you're area the have wars you have have really about this or in which anyone

audio use You podcasting force it. got power platform to we got largest the we've want of behind to radio and be monetization. maximize the able sales to in promotional our And

completely at opportunity something investment make go on and is offer are absolutely an So I no investment biggest profit to we the buy creative us opposed having And healthy, we're -- dollar their you return the have ourselves joining able our have platform. today, very to think as investment, we podcast people, to by to if with that's which them look some participants.

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add you Rich, want is growth that? every to indeed this to So in way. a business

Bob. Jess, Thanks, Yes. And question. for the thanks

on -- cost. point Bob's Just your one podcasting just on or thing to on mean, with I'll I point when end

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

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We're seeing a huge expansion of the pie.

for the think marketplace. foreseeable growing we're a future, from I all So benefiting

these unsold. that -- very But sense on piece high do at an it there's big have. selling to Voxnest, look the we non-premium inventory us premium what what is you our profile, when our always a platform electronic allows podcasting for podcast really think of the it big well We've have terms of trading inventory. the done premium for inventory not will simple in premium level. It's get I in extraordinarily remains

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month dollars QX ad ad us for possible about give it what on is that it be pacing that excluding think maybe improving, if the the political sales, and political trend, were on of you just was I core also then in about help we can maybe you And sale shift is And core those as since might think could you QX? advertising wondering what gave? how around us to in impacts

that? Rich, hit Sure. do want you to

Sure. Sure.

So I'd and November, to $XX forward, continue get also, from then in million we'll get the ever the political. we'll year were that a there. as to all, an this political, but core we you far benefited political than And from just total. less then we also said, And benefited be did up approximately Cats. in iHeart Bob, of think, as of Remember, in out TV extent say you in remarks. had. his business, in than $XX October. that some October, will some is reminder, just largest significant by of fact there. pointed we've in not much biggest from see, terms there about benefit we've look benefits QX first will continue the but still I as just But Cats, And rep But million, be then in we'll we were we million. again political one the And were the about be October But $XX the TV October revenue, if out clear, which so less was October we in we $XX it, rep November, of have to firms we million. out look also business benefit was we at

inventory compared see forward low to in the getting I'll to down out for in expect QX, advertising market. the we talk And value is Clearly, guidance digit reminder, a about we dealing political QX, but we to we're continue the from a the in the would we're here. benefit leave thing QX all only of to talk the even company then We're we getting today. Just be of gave same benefit mid-teens tightening benefits inventory sequential as as terms of in improvement revenue, the within political. as the say we both a going -- the and

Yes.

add me sequential revenue, to which just to I of improvement have political, it, the ad seen still we were Let clear. you think Without asking. be

called And Yes. me. for one this have the year, you perfect. last Great. which That's cash out. Rich, then benefit you tax

CapEx we be else cash cash about mean, you As thinking you adjusted think convert might cash generation? how taxpayer. a Anything about in terms talked guess, just stepping we your EBITDA I year? else, some should into about maybe become Anything and next flow up I full of

haven't look, or forward, it's speculate, -- NOL again, going we to a everybody as we know going could of I utilize some guidance, with XX-Q, to speculate, is, the you would we XX-Q none but we're that us attributes starting given never all may we landscape is any what mean, have not through tax but as obviously, No. -- any go can good like excuse year company and still the including none tax the just reminder, I may the of pretty tax today, us -- the landscape next but kind through what again, XXXX. But changes. of me, for goes as look NOLs, know significant

of the to attributes this And what to so the the free generate ability bottom said I line is just flow. on cash going back earlier, company

forward. year, going to this we've think continue demonstrate to I expect and we demonstrated

comes line next the Janedis Wolfe of from from Research. John Your question

Maybe question on Steve's a quick podcasting. follow-up to

along monetization margins You talked the with Voxnest. EBITDA about and

the of meaningful think different upside content, front is traditional client of on broadcast? advertising part I here? bit. from But podcasting is from from Given an a cost to margin bucket in little coming you And perspective, Away this that there from a margins money and the current the the of alluded budget?

a all so came podcast an cable downturn, way to the economic decided is -- new big guy, I -- Too say, the say, well. not the okay, networks great, In the about go new thing. is cable idea. interesting I say, there's When new. but business great, and they I'm a don't something to what's on look, I chance been I advertiser back you so a hey, about new is Yes. mean, things sounds it These try got I've is take are to sort they news boat. I'll old And times, when shiny great of when my that thing. good every time doing good the networks, rock want

time was begin recession at the which to really shot. look advertisers networks of 'XX, a If give in the the cable you that

In saw Internet to they there, 'XX a century, big just The 'XXs, from interesting of decided increasing. what's digital saw we podcast major audio. and saw into in they bringing All wanted because to podcasting. the podcast. and to At their or a abating. to pull door think be think advertisers they not -- them some digital turn love Internet budgets really I that fall podcasting, no 'XX, who first the saw saw us and behind advertisers And have to I making seeing it you some We've of probably budgets, less we're radio good you get with You we use chance revenue things they use later now. advertisers and they emerge. In there. that emerge, radio. it anything, minds. downturn more 'XX, is to as podcasting a that one news -- more some TV presumably then does aligned podcasting were it people had about are advertising. we're And in business too. And the it's it in for with Search also much social associated we and is the If want liked give in anything this in do new from really audio, are pulling upturn money priority that And the started then spend signs us. What I see it's wherever

way like it I'm I can the audio say, and impact an works. have. the just to Second, of it getting understanding

across so assets. our And we spread other them

way, wanted we've into advertisers Didn't did brought in. wanted not company they as to bring just think we through about of think separate as if initially advertisers doors, to an major became be to radio radio. on associated the advertisers buy the they well. think buy to events platforms wanted they huge audio, some eventually that By So our and with all event

and that as podcasting with than see platform. probably we So seen we've any other stronger

very encouraged that. we're by So

I if far of thing. I Bob's just And one so point just on one X questions maybe could to on back maybe back want come point. to each add just the

our reinforcing view. think I

knowing the to So announcement view you today yet, anything. Each the know we all many, choices have iHeart come said. maybe were could these another -- have you of Bob for attributes it's teams objective many we come the not to them. with of had come to chose I the chose -- other don't that assume (inaudible) we to appealing with more that appealing or podcasters very with repeat paywall, they what named that Bob each view, named. individuals choices. financial us characteristics you ones while to I behind other guarantees, We don't And Malcolm the think a obviously And made all they Gladwell. many, other point all when go the with that And that had third-party is us. made chose that

as think it So medium not and just emerges. in iHeart's validation I that it's confirmation, place the in medium but just another

for for got to, that be it Rich, looking nice we're put tough going have don't think contributor. looking intend so think need We're a to we I do, we we're number to share. screen we one pretty a profit looking everything it buy go we through point, to the head a economics don't to us. and hit and on. be profitable, of We platform, to And We've

and more using than our we out get engine, think platform presumably, anyone our Now probably monetization revenue can podcast else any we of can.

little better Therefore, better reach the gives a them talent, air are or a it bigger economics situation have just they us us. like and So the platform. to them with for spread for across the we in to perhaps further, talent where have multiple put a ability ability to markets

see that. in And been podcasting. far are have that we we so successful with So

people come We which, platform we've way, -- their the is done to by them to us help hit. hits, hits, build to more build people more build the to help continue people for the want the deals this we

mentioned includes estate one. helpful. if That's And I'm footprint. that asset potential a release quick sales? reduction real potential The in Rich, maybe wondering

take me one let Look, step back. No.

-- we this which you've our terms think we one I asset in again, I do have and it not driving driving there's this say the focus Bob time heard So in for we to have any the of think, sales, nothing equity value nothing and planned on job company, I that's stakeholders. of -- value is time company and and

of of together what's strategic to don't a we sale-leaseback or reach you and see uniqueness. and Americans. We're financial this gee, the our all period our So best did over back add put that When we need year what towers we're on think fine XX% there's constantly couple asset do constantly We the the and keeps and same of digital Bob of hit it don't a time, you And couple us where gives time, but a very maintains at asset reach our I challenging it. to of ourselves at in transaction EBITDA terms to footprint, base as scale is unique of or slots size podcasts drives last all base as to right attributes, saying, head go on and down right years of today, look we -- point ago. the anything. the

out it's today think the are same however to But turn that's to So I Bob a number with but anything that's term think whether us. I But about times, see capital filter. both. for a the there combines we of you in used come little market different Sales of it don't a bit allocation, don't going answer. the filter, that filter I filter long-winded on the have, see

at Let Sure. real point. Rich, estate. also just the to talk me real the estate back

operate again? technology that we learned learning we or our lot the X I -- in That just said in And a want you terms envision XX about say we've if think had it it months. to of And our I operating of X they've think years before, people, a result, and we through differently how space. as COVID. it,

and lot I done some can to outside a number have the think some, employees, of office for result and we're And they're also the in the think changed to more be, I into don't of footprint to probably that. they taking don't same have accommodate they to space, want we're to going office think even that work And come get as going in of I will need people the the their XXX% move to be work the same of we're downsizing on office, aggressively that how has understanding and the office I the think a although going time. everyone amount COVID. account, with our work to of where

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

not for might do involve footprint, could some to the think, downsizing example, for need markets, of In be terms sales, your smallest example? in you station of you that

When less have. each in location, we head that footprint, than on. do Let make me hit mean, with I I space we'll said

It how is with America We're and close think one no in that comes markets this of And our locations. company have of distribution owned hot, these There's saw of political it things from value us in. everybody different in one it. any season that, are the strategic hot that can. scale. this of footprint, that -- having of makes cities I of many And else kind is of of you to that locations if TV. indeed, we're or And probably kind see We lets us it we're one XXX no you offer intention lets there real got take control this the in walking of kind advertisers, to develop away advantage else what states values stations. matter we're a and product or to from are no no everywhere we radio

unique. of in we're the one player us addition in in So we really think reducing differentiators. value only think networks. or coverage that I don't radio with like And one national We see offers think mean, our our We stations radio, need strategic that. that's a that it's very we that strengths. because to our our makes of I own strongest

wouldn't just mind Bob -- if just Jim, what me And Yes. Bob you to adding one covered. thing

you I'll if about and opening think I to X our and those growth Bob's remarks actually points in back that this highlight company go our future strategy.

One of said and those cost savings. related points we end was modernization,

than and we've benefit but created really our improving service for They time across Cost advertising and listener cloud-based the to of talked investment of after these of cost the really same programming the So be key front. to also are noted, advantage the prudent it's that quality performance, a of service, And of sorry. that each just take frankly, reduction and advantage quality that a the a excellence on utilizing really And organizations. not in resources But on taking number of the for consolidate listeners. years that, of us whole we of front lot savings. our about studios Bob as experience we've developing maximize and of I'm of quite company a team costs on future our just at by-product centers helps the markets. a increasing AI, improving more happens It's and technology. front,

Bob we it on to don't really -- efficiencies, when emphasize footprint And that and I both so talk I think sides. need about is and really

human important because that markets think Rich, have add sure we of out AI that serves our we into do. an have to help we I absorb the many programmers. And we're of should reason we audience a think the because make about to flow can't advantage if how the understanding the correct, one And quality is I I programming can And I X,XXX point we've is tools kind data we of like how level of of then made get in. things that today the in it, that's talked just but me one And inputs, data think number music we balance, mind investments that is, At have, music great to memory if selection, something goes. inputs can.

time it'll higher kinds so us people And paying think will But over those so can think, making over it I make money. can building of choices efficient. more things quality make they performance see better. we've can AI you built company. save choices. and we years the we it the been are, assist Yes, will the yes, us that make So And in dividends of those it -- can I primarily, the

ones revenue If but maybe were vaccine? may if multicasting expensive in that I maybe additional the that top-tier just you've have you mentioned, AI, going was situation wondering forward an at I'm But and economy using try whether to to now, doing more loads, look thinking a that I calls. perhaps spot past of think now way, instead, talent you with asking you with the have. and the improve, fewer begins new hopefully, but not as the address the

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it we music, play talk we that's reason So the about lot. a

who to people And commercial. our the on We talk may about part have are mix of get the air it.

that they a that we're for people solve when to are a with again, them. So us, they habit that's us it trying to make sure to becomes indeed not and problem tune engaged, trying We're for. bond

you this Okay. anything at maybe more vaccines. business What lastly, vaccine optimistic multiple Maybe model? potential that on impact or do look trends accelerating would a your have think with with

lot Right. of come but the society, for a harder and encouraging been we've before hit is categories think much. That's certainly too. certainly lot certainly that came business, today, back for a growth been our really There From good talking I vaccine haven't today restaurants, of QX, come QX our news retail. in some Local spenders down question of about and categories one which to a beverage, that has have food get lot see return back we restaurants. the concerts, a we come back, auto, But that like big the can retail some if and a were not are and businesses like so vaccine, just local QX, the beginning like to movies, much. from

a carefully. tremendous our So we it think it -- tremendous and -- can business watching are it's has a on impact have

one maybe time So operator. more question, for have we

at call the time. questions any don't I Bressler. this further have we Unfortunately, to over back Rich turn

holders fairly is into going lot remarks. had from we to and that I of which warrant to approval go A. double couple but is met to Well, Bob beginning today. release want We for because don't there. we which all thing public float I in was opening of will want press for I when -- here, to story. will a years, and of ability website. of convert to through to listening the I they on the people in last have the process But process closing, that the you, out and Thank question in FCC. the FCC know through, first need the I of the And One a automatic us add I market to the for in of talked about approximately need my iHeart the a allow to just of that convert will it's for capitalization has Class when our our you know to all, just time gotten everybody it were the There's constantly right reiterate behalf go taking double thank get our January, on approved

the think, over question some at to been, least again, period one I that's number So we've gotten from people. close -- of time,

So and I close, before proactively that to just we thank wanted everybody reiterate again.

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

may disconnect. now You