Gray Television (GTN) 6 May 222022 Q1 Earnings call transcript

Good day and thank you for standing by. Welcome to the Q1 2022 Earnings Call. At this time, all participants are in listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Hilton Howell, Chairman and CEO. sir. ahead, go Please

and everyone. Operator, good you, morning, Thank

call. As and you CEO I am XXXX all the Chairman Hilton Howell, earnings quarter of first joining on Laurie us mentioned, for this Gray Television. Thank

President As usual with our Development Pat Bob today Chief are Chief and Financial our Legal Kevin Ryan; Smith. and and Operating officers, Chief our Gray’s LaPlatney; Officer, Co-CEO, executive me our Latek; Officer, Jim Officer,

will this will with provide. disclaimer a Kevin begin that We morning

Gray uses of everyone. website Thank as website source you, morning, Hilton. key its company address a Good is The information. www.gray.tv.

EBITDA our report these We statements. and as no the will These the a or file regarding, and from most meant undertakes forth may implied financial number in Form corporate company’s assist various as risks flow, free expressed in earnings financial our forward-looking reconciliation expenses, obligation particular Company set as broadcast non-GAAP with adjusted the to on reported GAAP are to our measurements on future looking differ in may factors are SEC. reports statements result this measures supplements subject results could been important analysis those website are quarterly filed company. other to our the SEC as Included to well later recent and future operating Actual have statements. in a their the of the any be forward our a cash operating that of discussed and the update GAAP things include statements measures cash matters replace measures among not to certain to Certain uncertainties. statements in financial provided call forward-looking results. Those of call Included as ratios. flow, on today. cash but flow, flow with public cash release, non-GAAP of metrics leverage discussion XX-Q our broadcast valuation the

call to the turn will Hilton. I Now

Thank you, Kavin.

We be second discuss full with thrilled all is Quite to the our today broadcast on nation’s simply group largest company first owner. you as firing the cylinders. are quite affiliate to quarter simply,

financial truly will exceeded for are great year this today we Once Gray another a released what be that quarter best-in-class. our Television. Our our also expectations results banner in guiding morning execution earnings our first quarter and confirms remains to again,

total revenue was million, was an XXXX the first XX% than the of higher XXXX. quarter which Our in amazing first quarter $XXX of

for the past guidance quarter. blew of high million $XXX of revenue total Our the our end

million or per and on income year expenses the income share That over this the Our $XX excluding of basis. net adjusted million, $X.XX quarter and a share. $X.XX increase Moreover, the or quarter fully first over per for non-cash figure $X $XX have the represents diluted a an of XXXX in been increase was related XX% XX% stock quarter compensation, the net first would fully quarter first on per basis our transaction share. diluted first

it As stations wholly-owned as on prior compared combined presents as basis. We both businesses acquisitions transparency to how CHB. in our earnings and and on you know, to financial are to according all it own provide more defined to results well refer to GAAP, our performing our effect historical order gives And release dispositions as periods.

as in we core company fact, quarter revenue Meredith today revenue. a X% of the of we every XX%. of CHP will August, particular, revenue, through expense revenues rated into production revenue savings professional on on year our to first our of results of revenue XXXX. flat to our fold. better those today X% CHB fold. into financial XXXX’s the Media television in between and local company basis, reported just a first fully we and X% as guided quarter… are X% our our integrated by than company. in today quarter this advertising the sales the integration company, the as and news, CHB adding Group quarter the have of sales prior our and revenue, of first to time. anticipated The numbers, from the our quarter as personnel, basis. stations technology progressed consent impressive Television local on and the advertising retransmission exceeded had our higher digits finished Our Well, Quincy the are teams Quincy employees result stations short our just created in on we These the Meredith own In well guidance Group of of low are a of as XXXX Their and expenses range In are period historical political basis. the as combined welcomed high a this up results very at games, first peerless contrast in fantastic the finished noticeably On release Meanwhile, Likewise, for And as welcomed combination busy December, into over increase well our we halfway total level about are stations top double well and resources. that stations stations, our

if I you that be would keep talk in great. so about it got to minute, quiet,

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a revenue the to to on today conservative records second core and our million for core company’s land continue will and for the revenue for between studio growth all a of breaking record its revenue, Gray guiding this around just historical for as great previous ahead quarter combined production basis. $XXX a ahead, strong are advertising In excitement for year quarter revenue look an million. guidance, for we the retransmission we we midpoint and combined on revenues, traditionally If in growth important businesses. our reported election and Looking $XXX both of revenue midterm political closing, history, XXX-year-plus break second at Television emerging political in in below with

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our revenues to over our address turn President detail. Pat? will more and LaPlatney, in I will the Next, ad Co-CEO, who Pat microphone

Hilton. you, Thank

of revenue are top the gains stations game. impressive across CHB the There year-over-year operate headwinds the Despite We war the first to Group. in inflation are the ad Hilton sales category, continued in Gray auto our revenue in very we reasons performance for and Europe, the continue happy with the in quarter. at first core core meaningful X% reviewed posted quarter. in many growth the

local on especially our progress great acquired newly We are in direct making developing business, stations.

be resources, direct million writing training stations $X roll synergies we direct per sales clear local center efforts resources in back role of there and at business. talent month from our business their and playing struggling advertising this Meredith are did on the $XX the lot quarter are through training last months offer other revenue been continuing they the the Gray clearly new for in a with have will of skills Quincy for managers now success the time both focal our today year. It’s talented former terrific -- with and stations having and our of Meredith companies. Even Our large sellers the Meredith stations success. Quincy are and new digital some concentrating that in-house and though sales and categories they a both we acquired growing. former stations. now Throughout the can half Between million and integrating first inherited have category years as we a digital We talent products great are as is and between ahead, are point automotive clients local the

a some core who vertical this behind slightly just bad pacing is in-house is victory in clear category news health who for work to outstanding stations done Well, health category. the -- It’s and in team news developing good fact, outstanding have In done auto. an that degree. have sales

new and to efforts. Our sales is our tourism make meaningful beginning travel also team to contributions

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to Gray our revenue While come stronger it believe in exercise small, and and we billing beneficial we sales national digital been exceeds continue double large wish Television will XX grow In billing in Digital digits. the markets for was ad I long-term. this all back, has diversification both now.

and partnership. positioned read digital have to well into we probably are pouring is you Premion sales with video OTT money take advantage As our and

digital growth two do in seen and see have video the years dramatically over foreseeable that down the future. we not We revenue grow slowing last

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on Bob Smith Next, offer our will Bob? additional station operations. color

Pat. Thank you,

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year’s better created our Through advertising produced acquisition news nearly with local to TV coveted late cases potential opportunities gathering Association In that newscasts. replaced two communities years, all these Broadcasters locally announced finalists local inherited for the a our our America This community Press Van in two new entertainment Greta to ways our quarter own have broadcasters. expanded of the and weeks, for are and reach Full locally customers with these America few stations Susteren, we and Minute, moves local newscasts the some Awards. we talents and clients Court local and that television programs focused Awards our end, distributed we Leadership across months customers. other and April, of close we three programs provide we past our resources the the service add weekday jointly recognize Meredith an Right leveraging After this In to new which serve coincidentally in PEOPLE which outstanding the better by to Service Foundation local the National for broadcasters. with the plans past Service The Over syndicated accelerated more to portfolio. came with program

most ago, Academy place six and recently categories and a was are that addressing We in unit the Congratulations of WMTV, XXXX and Two the despite television. bill risk of and the hearings are journalistic enterprise, called year. federal WIS, a of Arts honored Scientists, Division. in to Investigate continuing reporting. following small and late higher wheel. year. by coverage women acquired overall Southeast areas, was report, first investigation our recognized enacted to the men, exposed humbled disparity WBNG Collision investigative investigative owned week national TV led hard Television and for These the and headliner injury congressional last made that station our WTOC, with news television law all NATAS nations Atlanta five investigation National favor days Gray this into for This nominated crash death standards the excellence, medium for were at for KWQC. calendar station to The nominations news market Awards Emmy behind being excellence, the Last six Chapter Telemundo award

into in this are programming a our to April built this will stations tier cornerstone Telemundo acquired we top watching Gray end, our group be of our programming week channels Telemundo out more new see Taking We group Atlanta markets. Xst affiliated back we local to local as growth will Hispanics. ever announce of that our excited the that To serve the another very million are Telemundo first station the on XX we Telemundo Tuesday When television with thrilled than as deliver Atlanta station to on to for welcome Telemundo’s X.XX fully year of engine that Telemundo portfolio of leading step affiliated company. stations.

individual of news We to are ahead our opportunities to very all important excited advertisers of and XXXX. in resources to part advertisers, our local businesses our and of amazing to partnership only portion and launch Telemundo expansion language The the in and Spanish time, Telemundo reach serving for state. supported Georgia especially audiences network greater will launch will a to over -- reach leverage the be a Kevin. provides Georgia, Atlanta local Telemundo important serve Georgia turn speaking Hispanic the by new consumers I provide content signal includes communities. about political Over -- distribute Georgia, media flagship station. with this efficient across the the the markets Telemundo sales electorate markets. in who the all have organizations affiliate and Atlanta the that now This Spanish a local first new avenues lot nearly the residents call will of throughout and upcoming local of reach to initially create this

Bob. you, Thank

advertising. candidates combined weight spending by was $XX Hampshire, ads. in in the during the television Mike So South feat Carolina, was our XXXX irreplaceable XXXX XXXX’s two XXXX places of this and and has punch speaking on quarters supposedly Tom big primary is its presence. late historical states, Put to New spending and sold remarkable television Nevada station from Remember Gray basis, political Super political first and presidential Tuesday of supercharged spending early all too a political million Gray where in Steyer. continuing above advertisers, in A perspective, primary that by XXXX fueled Iowa, in Bloomberg

the particular, $XX quarter political XXXX. revenues first well produce to was, quarter we will first our million of first the As half million In to million in second figure a political $XX million $XX in impressive blow past that our half guide expect in as plus of revenue of political $XX of first $XX figure half revenue to million. a million $XX XXXX

of therefore, this XXXX. be So, half XX% would end low fuel presidential even the range first of primary the over a increase

better, from that Georgia million Georgia $XXX to we would runoff to that for combined began primaries, year, of revenue, booked a midterm Senate XXXX over portfolio of increase XX% increase for current XXXX. million, revenue. of XXXX million anticipate this again CHB presidential Now the $XXX and general $XXX $XXX basis. guide in represents on XXXX runoff over Day. political compare our in full election Election -- came election two of It’s presidential advertising total presidential when station political last our excluding political however, XXXX million Consequently, XXXX the historical the and revenue the on full advertising year after be XX% a our political Roughly which

remarkable at was to now other look without the our a good will release. I doubt, in political revenue turn matter you no So how it. news

As first growth retrains a XX% of year period. strong historical a On the you On a in from revenues saw, combined retransmission we basis million. quarter posted GAAP Retrans increased annual $XXX revenues earlier whopping increased that revenues earlier the prior periods quarter. from retrans part basis were true-up year for XX% first revenues the booked the payments our in to guidance due rain a exceeded period. in

Looking from our pay to exceed our for of we big revenues year $XXX million XXXX. counts will second $XXX quarter $X.X for retrains anticipate subscriber expect stable. continue full million forward, four retrains revenues relatively Particularly the remain to Meredith concludes fourth we billion Thankfully, the between and the my XXXX on X% TV portfolio across turn and microphone the year, This declined including I Ryan. the less we stations, remarks. subscribers of and Jim current quarter our fourth Quincy those quarter acquire by than XXXX. last

morning, Good Kevin. everyone. you, Thank

for in our Gray segregates XX-Q longer we companies income national force. you who our sales regional revenue to other little advertising relevant in filing own today a discussed presentation call rep fourth broadcast we revenue our sales beginning as local our local and sell note earlier, be in revenues and mentioned no XXXX, may to distinction statements. later will QX and As The advertising will sell local a national national be ads their and versus quarter from

know, not conducted use you being at national Gray does are level. the of and sales sales all As a our rep local

local for the the us covered have and highlights Pat, distinction and national between and the So all Bob is irrelevant QX. Hilton, key for Kevin, we it. retired

remarks my everybody. keep just try and will them to I So for brief recap relatively

million guidance, again, to to retransmission between First be and are million. expecting advertising of on revenue QX million, we $XXX million $XXX $XXX $XXX core revenue

commented, just number in $XX about we QX. retrans $XXX between million. advertising QX, not our repeated some $XXX million Kevin will our $X $XX and in As million to million Political in which of do to QX be adjustments only to one-time positive million QX had revenue revenue expect production $XX $XX Total revenue million, for million. be

of strong were a about expenses obviously, transaction-related comp start historical expenses to be will million $XX corporate can very includes in non-cash we of XXXX $XX QX. X million, between basis. with of expenses was million expectations of of compared political, political core for million about on stock comp. with to including transaction-related to and million that for QX operating are our companies QX million non-cash broadcast Total $XX Production combined are stock and payments and and expenses. see again million strong results. for up reverse $XXX expenses expected you and very are $X comp pleased million X% We $X Again, the $X to very expected and -- QX of million we networks, have and revenue $XXX a between pleased to have Our approximately million $XXX be

approximately and first revenue. The contributed -- group and which the for about the million. million was legal QX core of quarter $XX earlier, about revenue financial, about represented million. quarter XXXX mentioned medical Olympics $XX As Gaming Superbowl Winter XX% contributed $X includes our services the

at cash operating quarter was eight trailing X/XX/XX $X.XXX Our billion. flow

amount of billion. the principal debt was Our quarter the at outstanding end of $X.XXX

Our cash $XXX million. hand on was

X.XX leverage from Our is cash total down leverage QX ratio was net of our ratio. all times, which

our cash some full recap the was expectations times. so in to To X.X leverage with from XXXX. it historical, our for you can sorry, First-lien perspective for net XXXX, recap expectations year, all metrics combined put XXXX ratio

billion. combined historical XXXX Our $X.XX revenue net was

was historical blended two-year flow billion. blended our on flow in our $X two-year basis our a cash $X.X billion about operating operating XXXX Our or $X.XX billion. and flow was basis -- historical revenue was combined XXXX average operating cash And at about a cash net LAQ combined

Our million. cash XXXX free was $XXX

XXXX free cash Our blended was two-year average million. $XXX combined historical

and a routine and $XX expect that routine everybody capital discussed today will million, we $XXX cash interest little about cash dividends be of we QX call we dividend for million, $XXX over loan our routine our term -- of million. taxes As our in about million, million remind $XX preferred would quarter $XX expenditures of XXXX, million of deamortization and of required $XXX

that if higher. We $XXX are dividends, XXXX, acquisitions, number million we that side, before high our in will flow skew to anticipate reaffirm currently free going political cash that exceed to and skews cash accordingly free will investments the common obviously,

We starting to positioned the successful very now very turn back XXXX. to will well I call a are year. Hilton. We look forward

for Thank the to to station your to want just out reach on you And Kentucky ask Oaks tomorrow. it Derby I very say the Louisville operator in and the I our much, Kentucky congratulations Jim. and questions, over turn before to

your photographs you and there We doing in received Louisville. thrilled about are are what have

Operator, we for it. after at will questions. time, open up go So this

our And Instructions] Kurnos from question Benchmark. is from Dan [Operator you. Thank first

line is Your open.

Great. if strong just relative the in the maybe fact to XQ The of higher quickly guys get pretty way you than well Thanks. core. this would guide XX% guys terms anticipated it looks maybe the guess point. you just I at strong political Good morning. of CHB have address can, you Super that on around are topic, out are core results. we seeing what some

good what just be would about that initially are a on just anything Thanks. if color macro you windows, seeing So a really key start? when talking you little just can are you bit talk front

off. So start I will

not May pace, far strong low-to-middle it, be with core. -- are April at reasonably was soft, said, little you in but single-digit and QX range. expectations, the, June, as at a pleased we call are we goes, current look Especially bit As current in where alarmingly. we to as guided are

So the it positive in on, And little was I let some we just encouraged road will and are others pace political displacement bump in with markets June. and a probably, the and already. certainly, in May comment

Bob in. Yeah. jump is This I Smith. could

a some just are certain last said, will as markets being be We mentioned, that while, accounts but we probably Automotive, are optimistic we we Several making think Jim minutes on. mentioned quarter And developing May seeing and business, grow has the as are goes some mentioned will mentioned, are in about new and Pat direct in and increase continues it it on are is up been as then, That just in we a healthy. XXXX and as there XX challenge get, still year strong there political categories other to are also the as displacement. pretty June. for accounts, direct and a new categories. our local will that average

healthy second category pretty sort in a I call in the is performance quarter local seeing where boards, of that’s earlier growth strong are what we that -- highlight it’s venues, category, growth think with we one a state entertainment quarter. really all others talked to healthy about we would be tourism coupled

Got it. That’s helpful. super

Thanks.

And wasn’t words from colorful hoping lying for I’d time the around, saying Kevin but best. did I political, on this some more by be you aforementioned his

overturns? Wade there’s of up ton in We if just Roe So ends getting have a already on look, on, been that some money issue. heard v thoughts coming

where potential some might about whether in seeing directorial Senate balance talk of between, and outperformance for the be So issue of it’s just those you you kind verticals? versus can

political on -- said is and it days, have would the on XXXX in have and sides. we both fundraising decision bodes the had week, as the no interest seen Let idea records. strong fundraising release if packs me in we campaign what’s has known just that just as The as and well going a that in we would season. what the I the focus leak voters we of think intense is for Ohio and people there going ads more strong of obviously, -- are clearly, and are only on lot lot was see me there that wants the sides -- to elections, going campaign we that a to folks a have to left drive in seen, manager say, there are had And the fundraising money seen the candidates than happen it. to They many to continue. in got call leak The spend going have have the times, and bank. prior is heard you But will galvanized no money, we more or politics. say the both in end years, campaign a to last with higher that’s we last they three this as have as we already on have raised primary

possibly other people specific more on focusing we couldn’t to advertising. So, involved, it be is say, it impacts donate to probably that’s get how than money, and good for political

political of formal that his what’s Jim news we our calls is enthusiastic. political I our has XX% this, might one And use but Both on positions these that is QX. adding even of always that of seeing for as XXXX political of been that quarter. teams he revenue beginning if -- in I we sorry, then with a having and better ads has for primary have very votes. misspoke. have And locally, Dan, something are with state are state, you advertising revenue our they to money. strong. said competitive Gray know but I our But the much words is because earlier the important numbers us of lots venue deciding I comments. in raised thing and we about that Both and voters in have that that QX local I prefer think from And occurred, certainly mentioned comes than changes done the to ever political acquisitions don’t currently, colorful seen in mean to that through his XXXX are parties have be news Bob and the very and everywhere, reach XX% It have is are booming. advertisers first began that history, ads.

a And local that so buy and we inventory they have have political more will ads. to news more and position

be it’s election. likely I election. it previous think a presidential midyear any so, in think And will gargantuan exceed this I if not to rival year going And

All still right. better you… be That may Hilton. Thank

All good, right. That’s Dan.

just just you QX. just was a there I And let know will with this go -- I in interrupt having

positive out on just thoughts some We some there’s the net slack, have pretty MPD up if things on update of retrains picking layer? any heard your

updated thoughts. No, No.

thank guys. it. I Well, appreciate you I

you, Dan. Thank

from Thank from Goss next you. our Jim Barrington Research. And question is

Your line open. is

was of Meredith. properties going Quincy talk might some And might ad to helped news and I and just news political syndicated And be have the revenues many of importance, if said comment say, how might to programs syndicated how on might reductions results. efforts? how of Or that you experienced integration programs what the it replaced what many it -- inflate the hours? by And cost local be might the be recent just it of the have transition? aside I from impact Thank making in related about, typical what relate and you. And that might the about about wondered to ask you comment some about the you regarding halfway that coverage. earlier transition through

one. that take can I

Yeah.

ahead, Go Pat. Oh!

ahead, Go Bob.

Go No. Pat. fine. ahead That’s

No. fine. That’s

out And was that people. also those Meredith I will this, revenue markets. that would in mentioned producing replaced did, it in are quantify new As largest you a ad Hilton his Jim, cost syndication The too, the news recently they number I but said, effect material. can’t comments. our increased the on time number side, Not of a of with be tell in we and showed Bob periods. newscasts savings formal rolling I only on given the

only we serve more our the what not week. helping us also good of And We but because like are putting do. seems in, that’s it on business news side communities, every

continuing to term. to Hilton And long that or see so, you, it more I back happy there. And Bob, turn comments for

those Yes. just April it not lot first would did I that of because the first. that as our inflate one add shows, point mentioned, ended I a quarter

after came So, the that fact.

we overall in our However, believe way. in goal -- to localism is big

It’s whenever syndication for replace win-win syndication and poorly of lot news often, so, put we And can in is there. a local us. a and performing

avails some have serves I inventory all we we communities of of stations calls, mentioned -- syndication-free think that local it’s is and markets, have on have think this local content. and right on some the and is one them. all We one at Louisville but our we well. have syndication no them. Charlotte And prior I in now have all, it

in We are emphasis goal there almost emphasis continue a area. in Hartford, long-term that to and and that’s more news, syndicated on on we will to program and local have is grow less

whatever you ad up fair the terms spending Okay. with you you to to of revenue addition programming And saving of benefit get? the benefits it is in wind by think also the produce what cost syndicated in you

Yes. Absolutely.

Yes. We do.

Okay.

Are other The programs? I own, grave syndicating particular strategy guessing. to specific am waiting Meredith, of might back I were had know of a getting waters that thing, or those sort your from mentioned ancestran is little the a that was but just than you had? that, cut on whatever you of you programs sort [ph] several you you plus the in is have couple -- out bit, rather assessing

Yes.

this two Let it’s coincidental. it’s that that experiment. was talk years of endings, -- Washington. not try were we These ago. We Sunday it show me national a And launched an are Jim, planned. when Greta’s -- all wanted to said a coincidental show Kevin. great out We is

the was are the produced. way We show very happy with

the the the she’s shows our Greta ended air time for. more she do used hoped spent is on unless really more show April spectacular. actually to be. happy done. now Sunday were back -- We for preparing than guests often to show. talk are doing had first. able it He’s more those Sunday content, was that The with -- audience just didn’t quite It we well And find

held on win-win. distinct a it It, hoped out got The that was produced that really show too, had half generally we able Sunday was back much a local hour for. stations we put So for. a Meredith was TV -- news traction by in. didn’t get Meredith historically PEOPLE are get inherited. to they that the

came And or years remarks, coincidently this so in Raycom number that to around that’s April minute, I end, an for his a years. that as ago, after forgetting So some other folks Pat? five, am one. mentioned and of write That show Bob put then six together been again, was on

XX years ago, actually.

was have master you Yes. fail that course. as to of they and fast Okay. guys when too we of no plan, tend to There here. And ran things, try I It seen its hope working. from was, we hope kind it not kind Jim, Gray, strategy we are

win-win take things And things mentioned, working, time show fess aren’t continue to mentioned, is to to adding that news And for on. it local a syndicated eliminates if and to as win move want a it’s triple we really work it’s for as decisions Bob don’t resources. Sometimes while and and and stop for have cost, a us. a they make you our working, the -- We us. ending up and

much. very Appreciate it. Thanks Okay.

Thank you, Jim.

Thank our Bank. from next question from you. is Deutsche Aaron And Watts

Your open. is line

is Are good Everyone concerns solid current commitments? slowdown? at on and have you beyond XQ. just about economic flowing this pointed ad the question yet out follow-up I further and whether visibility thanks into you confidence, from ad for earlier me wanted Do an clearly backdrop, are a I having suppose you macro the on political more on. to little leaking outlook very the decisions and seeing buying quickly XQ a XQ any And on in. is what beyond consumer

as has front long in a -- Aaron, the other business this we than quarter in and us, traditional the immediate of time. for usual, been

to quarter-by-quarter. get lot a placed tends business have It’s don’t visibility. really of we Now

the no is So, in no, in what we We to than estimating be would anybody and else. optimistic. economy be the economies QX our going in forecasting remain markets doing overall or QX better

QX. QX, we for results with pleased expect are We the what from

see don’t any either. So, visibility red but a we big ton we have flags, don’t of

something am remained I in markets said war Kevin. businesses just the major is and going quarter We market strong. on the this through yet a me, and consumer our to advertise the who with and call. really a Let accentuate have our in inflation, went Pat in historical Ukraine

and headwinds business So, just saw in not QX remains despite strong, our you see there, that it guide. macro it are our out the in you QX results,

or is pressures doing there we know So optimistic real because going out we QX, some despite cautiously fine future are in the macro what on the hold but don’t we to side. are QX

Yes. point. Fair

this, apologize churn sub I we yeah, missed about heard I rates have but some of if MVPDs. And increased from Okay. the

past Can seemed trend late? some to seeing of in from than of you have your little the base bit just the always market speak averages. You a better sub been have to you what

X count said at our total sub less X%. the by We to sub quarter of than declined XXXX, -- -- pay-TV on Yes. we the XXXX fourth a quarter year fourth full quarter Big look

Okay. Great. one the and And more, then I time. just appreciate

Just driver revenues. from given clients. some business I sales broadcast not Gray’s decisions impacting indirectly or appreciate with I of prime the a programming Curious network specifically. ad from standpoint, network continued are time, main considering viewership prime trends, a perception ads that lead-in, perspective. that of pressures your viewership, on can a how But imagine, matter lead-out And or strength,

relative you So kind maybe ratings of give And local your anything to you of on Prime? there? color could late how news your are can to also if -- speak performing

minutes at about revenue is local of is Prime. is as that. We I Smith. don’t we we Network where XX% and really on network’s time a news, ago, drive less the in every few our from -- looking mentioned year. we This prime is Prime will Bob take are revenue our important depend

XX our revenue local developing XX% news… like news our content. on nothing goes that And was it’s XX comes So years ago. it emphasis local or again, in to back of

Okay.

holding Ratings are up.

doing can are -- tell I that. you We

they many As and very number to you perform so know, well. have one stations, continue we

again. Okay. Thank you

Aaron. Thank you,

Thank from you. question Cahall is next from Steven our Wells And Fargo.

open. Your is line

Thanks.

First, political just maybe that the on you Hilton, made. commentary

above or if included now prognostication guidance. that would expect maybe free upside your to be free level. that political said the current guidance you flow in I if XXXX don’t think to I cash be you know that’s cash flow

of maybe a just help there. little So bit

No. Steven, That’s aspirational earlier because stuff our earlier flow in guidance. political of a free starting that’s we not lot cycle. and of see just any included cash every that’s political

guide obviously of November, that’s Again, back that’s runoff happy of are you December you million from out point our the again, running is $XXX XXXX unchanged. when now, not back presidential, about XX% we XXXX. -- better Senate out out which remains Georgia the than Steven, -- and

is out those things, XXXX. So than already XX% and we XX% -- get an take say, better comparison, which our apples-to-apples guide

generate some ad way in Got those you. much could And TV you better about have Maybe moment. the the deal what talk are CW look you just stations at you the then I well. those on am are that the opportunities. and I announced, as of really the my assume conversion could upside like? that Telemundo retrains sales guessing don’t

be the deal? help from Telemundo of can us So your what kind about could impact larger just think you value

Yes.

not are We converting it.

the Telemundo because wondering We areas smaller to cover has literally low they stations TV buying the markets for full they buy these We several the months, been what adding to our add are in year some And than to them, to this have affiliation. were been stations able power. affiliates folks plan an last markets TV were stations power to tend do to to, in Telemundo new with not we quietly And we dropping any we going by are service low already low additional channel power ‘XX own. have over been markets. power,

the low markets, to in have So cover DMA. to have we some powers two

Telemundo. are Is in Telemundo of not we favor So anything dropping additive.

feed. national feed local the we insertion many news, So then convert with will national will begin we some to local local and -- going will throughout news as of ads off more will Atlanta and and we Atlanta, or There a feed markets. support have the with have we commercials. the market said, Georgia a And in station the the never be and to that There be as are markets, of the start feed that. will local that local many Georgia can

and help growth think So with a will to not going our is do sales to we to ad we -- what we stations’ reach be to certainly think sales our and this leverage part engine. it what local we be do us with news of our is audience. driver, going help material going a the but at a it It’s -- help

Telemundo. company, of where but we material adding markets are not the material the to So, probably some to

the last share of this lastly, talked Hilton, think the about just some look at sounds position the still where hits maybe think could, is Is that the same I by then. the then repurchases of since And calendar you. November end if you you call, year. in outlook still Thank of then a It kind are to end possible? being maybe incrementally like you bullish the cycle at that way it

are to and we always for every consider, Board opportunities look it Those quarter. our at

turn looking out. will at sort see course that be as we the sort And XXXX of so of we of

more out certainly than Board we comes that turns along see side it’s not, opportunity. is lines, optimistic just And so of what likely our an with. But up it yes, see and year we will something if those the the

Great. Thank you.

you, Thank Steven.

And Loop Gould have Instructions] you. Thank a we [Operator from question Alan from Capital.

Your line open. is

I have got a couple here.

more First, digital. little The pretty Pat, numbers seem could on bit drill down a you impressive.

core quantify, of you your digital. for much is example, revenue If how coming

it pretty quickly solid base. It’s am number teens. grow continues going not give And exact think you -- in now to and the growing but I that’s a is on -- what is a to the number, it I significant relatively it’s

So we efforts our happy are with there. pretty

being Atlanta think developed, expenditures us I Hilton, revenue opportunity capital much little to be the you more there assembly there give How content is of Jim space the a is or well. that’s project? that the And a recognize all as year? for insight you going shortage are for could Okay. what production on the

going. of see just to expect to our studios and large up expenditures there, get don’t enough but a capital We amount

run the So that first million for $XX you the be quarter, in year? the a that spent rate would

for in It have reduce property we by issuing CID, for we tax-free separate the itself the there, years, anything in there. offset which studios studios. from what the uniquely year, and sheet, expenditure we end creating benefited that of bonds capacity that around apart but our before the are because have And those on these the the be be will bond the will that capital $XXX later will here is unique bonds will million, are balance

the again. raise Okay. just comp reverse in just new And think for give us you the that wanted the some on that could us I give was NFL sense networks the prior some there? of Can the heard to to runway have are contract. tone sense general Kevin, discussions? the of they prices more you tone thought asking some I

Yes.

step-ups last said forward is going tell that X right hearing what narrative increases muted last was negotiations you more a believe had the I for in we affiliation or reverse rounds I on comp conversation, networks not those Quincy recent be now. large and than and seen prepared the that industry So would gray the can’t that really of as discussions had what because -- renewal what the call the the rounds. that network in the we we in overall NFL are

have end We this of got up at some the year.

but We on, will have later conversations at. things sense that’s those our general of where are

Okay. lot. Thanks a

have comments? no queue. Do closing questions Thank on there you. you are And further any

everyone today. been you, us a for thank It’s quarter. fantastic I Thank want to Operator. joining

an and fantastic even QX better full We year a expect results.

next we so at you. talking quarterly Thank report. And our forward look to to you

this for you participating. Thank conference call. today’s And concludes

You may now disconnect.