E W Scripps Co (SSP) 2022 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Q4 2022 E.W. Scripps Company Earnings Conference Call. (Operator Instructions)

女士們，先生們，謝謝你們的支持。歡迎參加 2022 年第四季度 E.W. Scripps 公司收益電話會議。 （操作員說明）

I'll now turn the conference -- for today's call, we will begin with Carolyn Micheli, Head of Investor Relations. Please go ahead.

我現在開始會議 - 對於今天的電話會議，我們將從投資者關係主管 Carolyn Micheli 開始。請繼續。

Thanks, Alan. Good morning, everyone, and thank you for joining us for a discussion of The E.W. Scripps Company's financial results and business strategies. You can visit scripps.com for more information and a link to the replay of this call.

謝謝，艾倫。大家早上好，感謝您加入我們討論 The E.W. Scripps Company 的財務業績和業務戰略。您可以訪問 scripps.com 以獲取更多信息和此通話重播的鏈接。

A reminder that our conference call and webcast include forward-looking statements and actual results may differ. Factors that may cause them to differ are outlined in our SEC filings. We do not intend to update any forward-looking statements we make today.

提醒我們，我們的電話會議和網絡廣播包含前瞻性陳述，實際結果可能有所不同。我們向美國證券交易委員會提交的文件中概述了可能導致它們不同的因素。我們不打算更新我們今天所做的任何前瞻性陳述。

Included on this call is a discussion of certain non-GAAP financial measures that are provided as supplements to assist management and the public in their analysis and valuation of the company. These metrics are not formulated in accordance with GAAP and are not meant to replace GAAP financial measures and may differ from other companies' uses or formulations. Included in our earnings release are the reconciliations of non-GAAP financial measures to the GAAP measures reported in our financial statements.

此電話會議包括對某些非 GAAP 財務措施的討論，這些措施作為補充提供，以協助管理層和公眾對公司進行分析和估值。這些指標不是根據 GAAP 制定的，並不意味著取代 GAAP 財務措施，並且可能與其他公司的使用或製定不同。我們的收益發布中包括非 GAAP 財務指標與我們財務報表中報告的 GAAP 指標的調節。

We'll hear this morning from Chief Financial Officer, Jason Combs; then Scripps' Chief Operating Officer, Lisa Knutson; and then Scripps President and CEO, Adam Symson. Here's Jason.

今天早上我們將聽到首席財務官 Jason Combs 的講話；時任 Scripps 的首席運營官 Lisa Knutson；然後是 Scripps 總裁兼首席執行官 Adam Symson。這是傑森。

Thanks, Carolyn. Good morning, everyone, and thank you for joining us. I'm going to start today with a quick look back at the fourth quarter of 2022. Then I'll give guidance for the first quarter at the division level and guidance on a few items for the full year, including our expectations for distribution revenue, which includes retransmission revenue. I'll conclude with a deeper look at our recently announced reorganization and how much we expect to save.

謝謝，卡羅琳。大家早上好，感謝您加入我們。我將從今天開始，快速回顧一下 2022 年第四季度。然後我將在部門層面給出第一季度的指導，並對全年的一些項目提供指導，包括我們對分銷收入的預期，其中包括轉播收入。最後，我將更深入地了解我們最近宣布的重組以及我們希望節省多少。

For the fourth quarter, Scripps delivered $681 million in revenue, up 9% from Q4 of 2021 and $204 million in segment profit, up 21%. The quarter included $112 million of total company political advertising revenue to cap our record year for a midterm election of $208 million. We are pleased that the local broadcast industry once again dominated election spending with a 55% share of political ad dollars.

第四季度，Scripps 實現收入 6.81 億美元，比 2021 年第四季度增長 9%，分部利潤為 2.04 億美元，增長 21%。該季度包括 1.12 億美元的公司政治廣告總收入，以結束我們創紀錄的 2.08 億美元中期選舉年。我們很高興本地廣播業再次以 55% 的政治廣告收入主導選舉支出。

Local Media revenue was up 24%, driven by political advertising as well as distribution revenue. Core advertising revenue was down 11%, in line with our guidance, primarily due to political ad displacement. Distribution revenue was up 5% to $160 million. Local Media expenses increased less than 5% from the year ago quarter and excluding programming costs, expenses were up less than 1%. Local Media segment profit was $152 million.

在政治廣告和發行收入的推動下，本地媒體收入增長了 24%。核心廣告收入下降 11%，符合我們的指引，這主要是由於政治廣告置換。分銷收入增長 5% 至 1.6 億美元。本地媒體費用較上年同期增長不到 5%，不包括節目製作成本，費用增長不到 1%。本地媒體部門的利潤為 1.52 億美元。

Turning to the Scripps Networks division. Revenue for the fourth quarter of 2022 was $248 million. That was down about 9% from the prior year quarter, reflecting softness in the national advertising marketplace. Networks' segment expenses were $168 million, in line with the prior year quarter. As of fourth quarter, we have cycled through investments we made to launch 3 networks over the year. Segment profit for the networks was $80 million.

轉向 Scripps Networks 部門。 2022 年第四季度的收入為 2.48 億美元。這比去年同期下降了約 9%，反映了全國廣告市場的疲軟。 Networks 的分部支出為 1.68 億美元，與去年同期持平。截至第四季度，我們已經通過我們在一年中推出 3 個網絡的投資進行了循環。這些網絡的部門利潤為 8000 萬美元。

In Other, we reported a loss of $6 million, which includes the spend for our national marketing campaign to promote consumer digital TV antenna use. Shared services and corporate expenses came in at $21 million. The company realized Q4 income from operations of $0.84 per share. As of year-end, cash and cash equivalents totaled $18 million. Our net debt at quarter end was $2.9 billion and our net leverage was 4.7x per the calculation in our credit agreements.

在其他方面，我們報告了 600 萬美元的損失，其中包括用於促進消費者數字電視天線使用的全國營銷活動的支出。共享服務和公司費用為 2100 萬美元。該公司第四季度實現每股 0.84 美元的運營收入。截至年底，現金和現金等價物總計 1800 萬美元。我們在季度末的淨債務為 29 億美元，根據我們的信貸協議計算，我們的淨槓桿率為 4.7 倍。

During 2022, we redeemed a total of $171.5 million of the outstanding principal on our senior notes and made principal payments on our term loan totaling $100 million. In addition, we made mandatory principal payments of $18.6 million on our term loans, so our total reduction in gross debt in 2022 was $290 million, and in the 2 years since the ION acquisition, we have paid down nearly $900 million in debt.

2022 年期間，我們贖回了總計 1.715 億美元的優先票據未償還本金，並支付了總計 1 億美元的定期貸款本金。此外，我們為定期貸款支付了 1860 萬美元的強製本金，因此我們在 2022 年的總債務減少了 2.9 億美元，並且在收購 ION 後的 2 年裡，我們已經償還了近 9 億美元的債務。

Now looking ahead, I'd like to give guidance for the first quarter of 2023. We expect total Local Media revenue to decrease in the mid-single-digit percent. We expect local core ad revenue to be down in the high single-digit percent range. Excluding the impact of the Olympics and the Super Bowl, Q1 core revenue is expected to be down only mid-single digits year-over-year. We expect Local Media expenses to be flat, aided by divisional expense controls as well as a moderation in network programming costs.

現在展望未來，我想給出 2023 年第一季度的指導。我們預計本地媒體總收入將以中等個位數百分比下降。我們預計本地核心廣告收入將下降到高個位數百分比範圍內。排除奧運會和超級碗的影響，預計第一季度核心收入同比僅下降中個位數。在部門費用控制以及網絡節目成本下降的幫助下，我們預計本地媒體費用將持平。

In the Scripps Networks division, we expect revenue to be down high single digits and expenses to be up high single digits driven by higher distribution and programming fees. First quarter shared services costs are expected to be about $24 million. We expect about a $3.5 million operating loss in Other in Q1, inclusive of the cost of our free TV campaign.

在 Scripps Networks 部門，我們預計收入將下降高個位數，而支出將在較高的分銷和節目費的推動下上升至高個位數。第一季度共享服務成本預計約為 2400 萬美元。我們預計第一季度其他業務的運營虧損約為 350 萬美元，其中包括我們的免費電視廣告活動的成本。

I'll conclude the guidance with a few full year items. We expect our gross distribution revenue to grow in the low teens percent range for the full year of 2023 as we renegotiate fees for about 75% of our cable and satellite TV households. We expect net distribution dollars to grow more than 30% this year. We expect capital expenditures of $75 million to $85 million. That's higher than our normal run rate because it includes onetime cost to build out a new facility in Denver where we divested of the prior building. We expect cash interest this year of between $180 million to $190 million, cash taxes of $40 million to $50 million and depreciation and amortization of $155 million to $165 million. We did not have any required pension contributions this year.

我將用一些全年的項目來結束指導。我們預計，到 2023 年全年，我們的總分銷收入將在較低的十幾%範圍內增長，因為我們重新協商了大約 75% 的有線電視和衛星電視家庭的費用。我們預計今年淨分銷收入將增長 30% 以上。我們預計資本支出為 7500 萬至 8500 萬美元。這高於我們的正常運行率，因為它包括在丹佛建造新設施的一次性成本，我們在那裡剝離了之前的建築物。我們預計今年的現金利息為 1.8 億至 1.9 億美元，現金稅為 4000 萬至 5000 萬美元，折舊和攤銷為 1.55 億至 1.65 億美元。我們今年沒有任何規定的養老金供款。

Given the ongoing uncertainty in the macroeconomic climate, as well as the implementation of our reorganization plan, we will not be giving a full year free cash flow guide or leverage outlook. I do want to reiterate, however, that our top capital allocation priority remains debt pay-down.

鑑於宏觀經濟環境的持續不確定性以及我們重組計劃的實施，我們將不會提供全年的自由現金流指南或槓桿展望。然而，我確實想重申，我們的首要資本配置優先事項仍然是償還債務。

On January 5, the company announced plans to reorganize for 2 goals: to centralize roles in departments across the organization while preserving our commitment to serving our audiences with quality journalism and programming, and to create better ability to deploy our resources across the enterprise so that we can both build and respond quickly to growth opportunities.

1 月 5 日，該公司宣布了重組計劃，以實現兩個目標：集中整個組織各部門的角色，同時保持我們以優質新聞和節目為受眾服務的承諾，並創造更好的能力在整個企業中部署我們的資源，以便我們都可以建立和快速響應增長機會。

At this time, we expect to realize at least $40 million in annual savings from the reorganization. We expect those savings to be mostly operationalized in the first half of 2024. We expect to record restructuring charges this year as we begin to implement those savings. Former Scripps Networks' President, Lisa Knutson, was appointed Chief Operating Officer and is leading our reorganization efforts. She is also now responsible for overseeing both of our operating divisions.

目前，我們預計通過重組每年至少節省 4000 萬美元。我們預計這些節省的資金將在 2024 年上半年大部分投入使用。隨著我們開始實施這些節省，我們預計今年將記錄重組費用。 Scripps Networks 前總裁 Lisa Knutson 被任命為首席運營官，並領導我們的重組工作。她現在還負責監督我們的兩個運營部門。

I'll turn it over to her to share highlights from Local Media and the Scripps Networks operations, and then Adam will discuss our strategies around the reorganization.

我將轉交給她分享本地媒體和 Scripps Networks 運營的亮點，然後 Adam 將討論我們圍繞重組的戰略。

Thanks, Jason, and good morning, everyone. It's my pleasure to be here in my new capacity as COO. I've held many roles at Scripps, including Networks President, Chief Financial Officer and Chief Strategy Officer. I led the organizational design work to spin off Scripps Networks Interactive in 2008 and to spin off our newspaper group in 2015. And I led the integration of ION that launched our very profitable Scripps Networks division. I have spent the majority of my career focused on helping to ensure that Scripps succeeds and perpetuates in the always evolving consumer media ecosystem. And I'm committed to executing this new transformation for the benefit of all Scripps stakeholders.

謝謝，傑森，大家早上好。我很高興以首席運營官的新身份來到這裡。我在 Scripps 擔任過許多職務，包括 Networks 總裁、首席財務官和首席戰略官。我領導了組織設計工作，於 2008 年剝離了 Scripps Networks Interactive，並於 2015 年剝離了我們的報業集團。我還領導了 ION 的整合，推出了我們非常有利可圖的 Scripps Networks 部門。我職業生涯的大部分時間都專注於幫助確保斯克里普斯在不斷發展的消費者媒體生態系統中取得成功並永存。我致力於為所有 Scripps 利益相關者的利益執行這一新的轉型。

I'm focusing my comments today on highlights from the current quarter advertising environment for both Local Media and Scripps Networks. The current macroeconomic climate continues to put pressure on TV advertising, and you'll see that reflected in our outlook. The first quarter already tends to be the lowest revenue quarter of the year and the pressure on the ad market didn't start until the end of first quarter last year. In addition, in the Local Media segment, we have a tougher comp in core advertising because our first quarter of last year included nearly $9 million in Winter Olympics advertising as well as the Super Bowl in our 11 NBC stations.

我今天的評論集中在 Local Media 和 Scripps Networks 當前季度廣告環境的亮點上。當前的宏觀經濟環境繼續給電視廣告帶來壓力，您會在我們的展望中看到這一點。第一季度已經趨於成為一年中收入最低的季度，廣告市場的壓力直到去年第一季度末才開始顯現。此外，在本地媒體部分，我們在核心廣告方面的競爭更為激烈，因為我們去年第一季度包括近 900 萬美元的冬季奧運會廣告以及我們 11 個 NBC 電視台的超級碗。

This year, with no Olympics and the Super Bowl on 4 Fox stations, we missed out on about $7 million in revenue. Excluding the impact of the Olympics and the Super Bowl, Q1 '23 core revenue is expected to be down mid-single digits year-over-year. Our top local media core advertising categories by total dollars for the first quarter look to be services, automotive, retail, home improvement and gambling. Only 2 of the 5, automotive and home improvement, were up in January.

今年，由於沒有奧運會和 4 個福克斯電視台的超級碗，我們損失了大約 700 萬美元的收入。排除奧運會和超級碗的影響，23 年第一季度核心收入預計同比下降中個位數。我們第一季度按總美元計算的頂級本地媒體核心廣告類別看起來是服務、汽車、零售、家居裝修和賭博。汽車和家居裝修這 5 個中只有 2 個在 1 月份上漲。

Our Local Media distribution revenue picture is exceedingly strong for this year. As you know, we are renewing about 75% of our legacy pay television households. And we expect growth distribution revenue to grow in the low teens percent range this year and net distribution dollars to grow more than 30%. Our third Local Media line, political, we expect to be on par this year with the last 2 off-cycle election years. Special elections and a Wisconsin state Supreme Court race are driving the first quarter activity and the back half will pick up with what we expect be competitive state-wide elections in Kentucky, Louisiana and Virginia.

我們今年的本地媒體分銷收入情況非常強勁。如您所知，我們正在更新大約 75% 的傳統付費電視家庭。我們預計今年的增長分銷收入將在較低的十幾%範圍內增長，淨分銷美元將增長 30% 以上。我們的第三條地方媒體路線，政治路線，我們預計今年將與過去 2 個非週期選舉年持平。特別選舉和威斯康星州最高法院的競選正在推動第一季度的活動，後半部分將隨著我們預期在肯塔基州、路易斯安那州和弗吉尼亞州舉行的競爭激烈的全州選舉而繼續。

Now let's turn to the Scripps Networks segment revenue picture for the first quarter. We continue to feel pressure in the direct response marketplace, which has historically been resilient and makes up about 40% of our total ad revenue. The direct response ad market is sensitive to inflation because it causes consumers to tighten their discretionary spending. So the eventual easing of inflation pressures will help us there.

現在讓我們來看看第一季度 Scripps Networks 部門的收入情況。我們繼續感受到直接反應市場的壓力，該市場歷來具有彈性，約占我們廣告總收入的 40%。直接反應廣告市場對通貨膨脹很敏感，因為它會導致消費者收緊可自由支配的支出。因此，通脹壓力的最終緩解將幫助我們實現這一目標。

The scatter market also has been soft, and we're seeing the advertisers buy ads closer and closer to air dates. However, we are confident that our strong portfolio of network brands, our broad distribution on every viewing platform and our full nationwide audience reach positions us well to capitalize when the national ad market rebounds.

散點廣告市場也一直疲軟，我們看到廣告商購買的廣告越來越接近播出日期。然而，我們有信心，我們強大的網絡品牌組合、我們在每個觀看平台上的廣泛分佈以及我們在全國范圍內的觀眾覆蓋範圍，使我們能夠在全國廣告市場反彈時充分利用。

And despite the macroeconomic challenges, our connected TV revenue remains a bright spot for us. We continue to aggressively launch our network brands across all the big CTV platforms, including Samsung TV Plus, Roku, fuboTV, Pluto, Freevee, Vizio WatchFree and Tubi. These launches drove a revenue run rate going into 2023 of more than $100 million, and we are projecting connected TV revenue in 2023 to increase about 45% over 2022.

儘管面臨宏觀經濟挑戰，但我們的聯網電視收入仍然是我們的亮點。我們繼續在所有大型 CTV 平台上積極推出我們的網絡品牌，包括 Samsung TV Plus、Roku、fuboTV、Pluto、Freevee、Vizio WatchFree 和 Tubi。這些發布使到 2023 年的收入運行率超過 1 億美元，我們預計 2023 年的聯網電視收入將比 2022 年增長約 45%。

In addition, we continue to realize significant opportunity our networks have with the growth of virtual MVPDs. During this quarter, ION, Scripps News and Balance joined Core TV and being available to the full YouTube TV subscriber base, and we are planning to launch additional free ad-supported or FAST channels in the coming months. We are very pleased that we've been able to parlay our acquisitions of ION and [Katz] networks into a thriving portfolio of news and entertainment brands. Owning those broadcast networks has allowed us to optimize the monetization of our spectrum, while at the same time, capitalizing on the burgeoning connected TV ecosystem. These network brands are now easily found on any viewing platform, and they are delivering a range of demographics that are attractive to advertisers.

此外，隨著虛擬 MVPD 的增長，我們繼續意識到我們的網絡所擁有的重大機遇。在本季度，ION、Scripps News 和 Balance 加入了 Core TV 並向整個 YouTube TV 訂閱者群開放，我們計劃在未來幾個月推出更多免費的廣告支持或 FAST 頻道。我們很高興能夠將我們對 ION 和 [Katz] 網絡的收購利用到一個蓬勃發展的新聞和娛樂品牌組合中。擁有這些廣播網絡使我們能夠優化頻譜的貨幣化，同時利用新興的聯網電視生態系統。這些網絡品牌現在可以在任何觀看平台上輕鬆找到，並且它們正在提供一系列對廣告商具有吸引力的人口統計數據。

I would now like to share a few programming highlights for the division. Our Nashville television station, WTVF NewsChannel 5 recently won a prestigious National duPont Journalism Award for an investigation of Tennessee's state legislative proceedings. We are very proud of the work to shine a light on a secretive process where lawmakers were doing the bidding of well-financed special interest. As a result of our investigation, the Tennessee statehouse has created a system to make amendments publicly available before votes.

我現在想分享該部門的一些編程亮點。我們的納什維爾電視台 WTVF NewsChannel 5 最近因對田納西州立法程序的調查而獲得著名的國家杜邦新聞獎。我們為揭露一個秘密過程而感到自豪，在這個秘密過程中，立法者正在競標資金充足的特殊利益。作為我們調查的結果，田納西州議會大廈已經建立了一個系統，可以在投票前公開修正案。

At Scripps Networks, total primetime viewership for the total portfolio was up 8% in 2022 versus 2021. ION continues to be a top 5 broadcast network and a top 10 ranked network among all Nielsen-measured TV networks. And even in the face of declining linear viewing, ION has actually moved up in rankings from 2021. In fact, all the Scripps networks that were Nielsen measured in 2021 moved up in rankings in 2022.

在 Scripps Networks，2022 年整個投資組合的黃金時段總收視率比 2021 年增長了 8%。ION 繼續在所有 Nielsen 衡量的電視網絡中排名前 5 位和排名前 10 位。即使面對線性收視率下降，ION 實際上從 2021 年起排名上升了。事實上，尼爾森在 2021 年衡量的所有 Scripps 網絡在 2022 年的排名都上升了。

On Bounce, our dramedy Johnson continues to draw strong ratings and critical acclaim. We're bringing back the show for a third season this summer, and we're very excited to be launching a new comedy on Bounce called Act You Age, which premieres on March 4. The show stars well-known actresses, Kym Whitley, Tisha Campbell, and Yvette Nicole Brown, and it's already receiving terrific media reviews.

在 Bounce 中，我們的 dramedy Johnson 繼續獲得高收視率和評論界的好評。我們將在今年夏天將該節目帶回第三季，我們非常高興能夠在 Bounce 上推出一部名為 Act You Age 的新喜劇，該劇將於 3 月 4 日首映。該節目由知名女演員 Kym Whitley 主演， Tisha Campbell 和 Yvette Nicole Brown，它已經收到了極好的媒體評論。

I'd like to end my remarks with a comment on our mission and social responsibility. Scripps believes Americans want and need news and information coming from journalists who strive to base their reporting on facts and not perspective or opinion. Every day, our local and national news teams are out in their communities, covering the issues that matter most to their audiences with an even hand. So we're very proud that Newsy, now called Scripps News, has been recognized by NewsGuard for serving news consumers and advertisers with objectivity, providing a trusted news source for audiences and a brand-safe place for advertisers. It's good business for us and central to our mission.

我想以對我們的使命和社會責任的評論結束我的發言。斯克里普斯認為，美國人希望並需要來自努力根據事實而非觀點或意見進行報導的記者提供的新聞和信息。每天，我們的地方和國家新聞團隊都會出現在他們的社區中，以公平的方式報導對他們的聽眾來說最重要的問題。因此，我們感到非常自豪的是，Newsy（現在稱為 Scripps News）已被 NewsGuard 認可為客觀地為新聞消費者和廣告商提供服務，為受眾提供可信賴的新聞來源，並為廣告商提供品牌安全的場所。這對我們來說是一筆好生意，也是我們使命的核心。

And now here's Adam.

現在亞當來了。

Thanks, Lisa, and good morning, everybody. Before I discuss our company transformation, I'd like to address the horrific tragedy this week in Orlando, where a TV news reporter was shot and killed and his photographer critically injured during a shooting spree. These journalists were shot while sitting in their car at the scene of a crime covering their local community. I hope all Americans can appreciate the efforts journalists make every day to keep them informed. Sometimes this involves putting themselves at risk, and I assure you that Scripps takes great precaution to keep our people safe, including continually reviewing our safety measures and guidelines for field staff. Our hearts go out to the families and coworkers of these journalists as well as all of the other reporters who are on the scene, and we thank them for their service to the public and the First Amendment.

謝謝，麗莎，大家早上好。在討論公司轉型之前，我想談談本週在奧蘭多發生的可怕悲劇，一名電視新聞記者在一次瘋狂射擊中被槍殺，他的攝影師受重傷。這些記者在報導當地社區的犯罪現場坐在車裡時被槍殺。我希望所有美國人都能感謝記者每天為讓他們了解情況所做的努力。有時這會讓他們自己處於危險之中，我向您保證，Scripps 採取了極大的預防措施來確保我們人員的安全，包括不斷審查我們的安全措施和現場工作人員指南。我們的心與這些記者的家人和同事以及在現場的所有其他記者同在，我們感謝他們為公眾和第一修正案所做的服務。

In the last 5 years, Scripps has undergone 2 major transformations. The first in 2017 drove more than $30 million in cost savings through restructuring. We exited radio and created a platform of scale in local television. The second, 2 years, ago came after we exited digital audio and podcasting for tremendous returns and bought ION Media, an acquisition that catalyzed the creation of our profitable portfolio of national news and entertainment networks and opened up tremendous future opportunity to monetize spectrum in new ways.

在過去的 5 年裡，Scripps 經歷了 2 次重大轉變。 2017 年的第一次重組通過重組節省了超過 3000 萬美元的成本。我們退出了廣播，並在地方電視台創建了一個規模化的平台。第二次是 2 年前，在我們退出數字音頻和播客以獲得巨大回報並收購了 ION Media 之後，這次收購促進了我們創建有利可圖的國家新聞和娛樂網絡組合，並開闢了巨大的未來機會，使新的頻譜貨幣化方法。

We've had 3 guiding principles for both transformations. The first, to improve our near-term operating performance. The second, to set the company on a path of continued growth in the media marketplace. And finally, to perpetuate our mission of journalism and stewardship in service to the American people. Last month, we announced the start of a third transformation, and today, I'd like to walk you through the significance of that initiative to improve our margins, fuel our growth and best leverage the strength of our platform to serve Americans the critical journalism they need, the live sports they crave and the premium entertainment they want to effortlessly enjoy.

我們為這兩種轉變制定了 3 條指導原則。首先，改善我們的近期經營業績。第二，使公司走上媒體市場持續增長的道路。最後，延續我們為美國人民服務的新聞和管理使命。上個月，我們宣布開始第三次轉型，今天，我想向您介紹該舉措的重要性，以提高我們的利潤率，推動我們的增長，並最好地利用我們平台的力量為美國人提供批判性新聞他們需要，他們渴望的現場體育賽事以及他們想要輕鬆享受的優質娛樂。

Unlike the layoffs and downsizing you are currently seeing in the tech and media space driven by the soft economy and over commitment to subscription streaming and the pull forward of revenue from the pandemic, we are not cutting costs reactively. Quite the opposite, what is driving us is a proactive plan that recognizes the power of our distribution platform and Scripps' commitment to capitalize on the chaos in the media marketplace to drive greater profit from the disruption, again, in support of our mission to serve the American people.

與您目前在技術和媒體領域看到的裁員和裁員不同，這些裁員和裁員是由經濟疲軟、對訂閱流媒體的過度承諾以及大流行帶來的收入拉動推動的，我們並沒有被動地削減成本。恰恰相反，推動我們的是一項積極主動的計劃，該計劃承認我們的發行平台的力量和 Scripps 致力於利用媒體市場的混亂來從中斷中獲取更大的利潤，再次支持我們的使命美國人民。

As Jason said, we expect to take $40 million of costs out of the organization over the coming year or so. we will start by reorganizing the company to reduce redundancy across the operating businesses as well as centralizing roles and consolidating management. Yes, that will absolutely improve our operating profile. But more importantly, the new leadership structure will allow us to more effectively focus our resources across the enterprise, to execute against our strategic objectives and to grow enterprise value. With local television stations that stretch coast to coast and the collection of broadcast, cable and streaming networks that reach every American on any distribution platform, our 2 operating segments are far more alike than dissimilar.

正如 Jason 所說，我們預計在未來一年左右的時間裡將從該組織中削減 4000 萬美元的成本。我們將從重組公司開始，以減少運營業務之間的冗餘，並集中角色和整合管理。是的，這絕對會改善我們的運營狀況。但更重要的是，新的領導結構將使我們能夠更有效地集中整個企業的資源，執行我們的戰略目標並增加企業價值。憑藉遍布東海岸到西海岸的地方電視台以及廣播、有線和流媒體網絡的集合，通過任何分發平台覆蓋每個美國人，我們的 2 個運營部門的相似之處遠大於不同之處。

We are already realizing new ways to create value across the enterprise by leveraging the strength of our assets under this new alignment, with Scripps News, original programming, advertising sales and soon, live sports. The transformation will continue from there as we better leverage cloud-based technology to improve the efficiency and efficacy of our products for audiences and advertisers. That will include inside our newsrooms, local and national, as we commit to better, more relevant and higher-quality journalism enabled through better technology.

我們已經實現了在整個企業中創造價值的新方法，通過利用我們在這種新結盟下的資產優勢，包括斯克里普斯新聞、原創節目、廣告銷售以及即將推出的體育直播。隨著我們更好地利用基於雲的技術來為受眾和廣告商提高我們產品的效率和功效，轉型將從那裡繼續。這將包括在我們的地方和國家新聞編輯室內部，因為我們致力於通過更好的技術實現更好、更相關和更高質量的新聞。

As you'll begin to see clearly, these moves are about positioning us for the future. As investors will know, linear television is under pressure. Pay TV subscriber counts continue their decline. The American audience is so fragmented that no one platform or service can capture the majority of them, and Wall Street is awake to the reality that SVOD services are never going to generate the margins that mainstream media has delivered. Linear TV is evolving, and this is where Scripps sees our opportunity, in linear television as the most powerful television reach platform, connecting the biggest audiences around news, live sports and entertainment, often now free to the consumer.

正如您將開始清楚地看到的那樣，這些舉措是為了讓我們為未來做好準備。正如投資者所知，線性電視面臨壓力。付費電視用戶數量繼續下降。美國觀眾如此分散，以至於沒有一個平台或服務能夠佔據其中的大多數，華爾街意識到 SVOD 服務永遠無法產生主流媒體所提供的利潤這一現實。線性電視正在發展，而這正是 Scripps 看到我們機會的地方，線性電視作為最強大的電視覆蓋平台，將新聞、體育直播和娛樂方面的最大觀眾聯繫起來，現在通常對消費者免費。

Several quarters ago, I told you that we were operating with an all-of-the-above strategy, resolve to pursue the growth of our over-the-air broadcast, distribute further and wider on connected TV and, of course, benefit from the incumbency of pay TV. All 3 are the distribution platforms of linear television. And it's in that all-of-the-above strategy where we see opportunity for Scripps' platform in live sports. And I got to say, as we sit here today, witnessing the implosion of the RSN business model, it's also why Scripps Sports has been getting a very warm reception in that marketplace.

幾個季度前，我告訴過你，我們採用的是上述所有戰略，決心追求無線廣播的增長，在聯網電視上傳播得更遠更廣，當然，還受益於付費電視的責任。三者均為線性電視的發行平台。正是在上述所有戰略中，我們看到了 Scripps 體育直播平台的機會。我不得不說，當我們今天坐在這裡，見證 RSN 商業模式的內爆時，這也是 Scripps Sports 在該市場受到熱烈歡迎的原因。

Our ubiquitous over-the-air, pay TV and connected TV reach through ION and the Scripps Networks has immense appeal for leagues looking to build new and consistent franchise viewing events across the national footprint. For us, we see the right live sports as an unparalleled opportunity to drive the value of our linear television streams even higher. Locally, live sports will draw young new audiences to our brand as fervent fans deploy digital antennas to watch their favorite local teams for free again. And if direct-to-consumer revenue is to be a material part of the future for leagues and teams, they realize that they'll need a partner like Scripps with broad audience reach.

我們通過 ION 和 Scripps Networks 無處不在的無線、付費電視和聯網電視對希望在全國范圍內建立新的和一致的特許經營觀看活動的聯盟具有巨大的吸引力。對我們來說，我們將合適的體育直播視為一個無與倫比的機會，可以進一步提升我們的線性電視流媒體的價值。在本地，體育直播將吸引年輕的新觀眾加入我們的品牌，因為狂熱的粉絲們部署數字天線再次免費觀看他們最喜歡的本地球隊。如果直接面向消費者的收入要成為聯盟和球隊未來的重要組成部分，他們就會意識到他們需要像 Scripps 這樣具有廣泛受眾範圍的合作夥伴。

Like live sports, news is also a critical content genre that defines linear viewing. News, by its very nature, is watched with urgency and timeliness, not on demand. Our recently rebranded national network, Scripps News, is the nation's only 24/7 news network over the air, while also being fully deployed on connected TV services. But that's just the beginning for Scripps News. We're reaffirming our commitment to local journalism and expect to further integrate Scripps News content and brand within our local stations in order to support our local newsrooms and their responsibilities to the communities they serve.

與體育直播一樣，新聞也是定義線性觀看的重要內容類型。就其本質而言，新聞是緊迫和及時的，而不是按需觀看的。我們最近更名的國家網絡 Scripps News 是美國唯一的全天候 24/7 空中新聞網絡，同時也完全部署在聯網電視服務上。但這只是 Scripps News 的開始。我們重申我們對地方新聞業的承諾，並期望在我們的地方電台中進一步整合斯克里普斯新聞的內容和品牌，以支持我們的地方新聞編輯室及其對所服務社區的責任。

Over the years, you've asked me, are there natural synergies between your national news products and local stations? And under our reorganization plan, the answer is a resounding yes, and it will bring along better local and national journalism. So you see, the company restructuring is a means to an end to become leaner, more agile and more focused. We are realigning the way we see our collection of assets, not just as 2 healthy businesses, but as 1 enormously powerful distribution platform, the largest holding of broadcast spectrum, configurable to deliver local market depth and maximum national reach and drive new enterprise value in today's ever-changing media ecosystem.

這些年來，你問我，你的國家新聞產品和地方電視台之間有天然的協同作用嗎？根據我們的重組計劃，答案是肯定的，它將帶來更好的地方和國家新聞業。所以你看，公司重組是達到更精簡、更敏捷和更專注的目的的一種手段。我們正在重新調整我們看待資產集合的方式，不僅僅是作為 2 個健康的企業，而是作為 1 個非常強大的分發平台，最大的廣播頻譜持有量，可配置以提供當地市場深度和最大的全國影響力，並推動新的企業價值當今不斷變化的媒體生態系統。

I've been very fortunate to work with a team that knows how to deliver results. And all along, we have done what we have said we would do. Now as we embark on this latest transformation, we'll do so again, improving the company's operating performance, realigning to capture greater opportunity and drive growth and all the while keeping our mission of service to the American people at the center of what we do.

我很幸運能與一個知道如何交付結果的團隊一起工作。一直以來，我們都做到了我們所說的。現在，當我們開始這一最新轉型時，我們將再次這樣做，提高公司的經營業績，重新調整以抓住更多機會並推動增長，同時始終將我們為美國人民服務的使命置於我們工作的中心.

And now operator, we're ready for questions.

現在接線員，我們準備好提問了。

(Operator Instructions) Our first question will come from Michael Kupinski with NOBLE Capital Markets.

（操作員說明）我們的第一個問題將來自 NOBLE Capital Markets 的 Michael Kupinski。

In terms of the $40 million in savings, Adam, which division will see the largest impact of those savings? I was just wondering if you could just give us some color on how that will fall.

就 4000 萬美元的節省而言，亞當，哪個部門將看到這些節省的最大影響？我只是想知道你是否可以給我們一些關於它將如何下降的顏色。

Yes. So at this time, we're not providing any breakdown between the various segments. But what I will tell you is the savings is going to come across a variety of buckets, including external spend, technology restructuring and employee costs. And I think that will -- as we move on to future earnings calls, we'll be able to provide a little bit more detail there. But at this time, we're not giving that out.

是的。所以目前，我們不提供各個細分市場之間的任何細分。但我要告訴你的是，節省的資金將來自多個方面，包括外部支出、技術重組和員工成本。而且我認為這將 - 隨著我們繼續進行未來的收益電話會議，我們將能夠在那裡提供更多細節。但在這個時候，我們不會給出它。

Okay. In terms of the Scripps Networks expense in the first quarter, I thought we were going to see some margin improvement in this division beginning in the fourth quarter, which we did see. Do the distribution and programming fees largely hit the first quarter? Can you kind of give me some color on the expense increases in the first quarter and the outlook for the expenses for the balance of the year, and whether you might expect margin improvement for the division for the year?

好的。就第一季度的 Scripps Networks 費用而言，我認為我們將從第四季度開始看到該部門的利潤率有所改善，我們確實看到了。發行和節目費是否主要影響第一季度？你能給我一些關於第一季度費用增長和今年餘額費用前景的顏色嗎？你是否可以預期今年該部門的利潤率會有所改善？

Yes. Mike, it's Lisa. So we do have some distribution expenses hitting in first quarter. As we announced, we've been launching across multiple CTV platforms and virtual MVPDs. So that is definitely -- and it takes a little bit of time to ramp up the revenue once you've launched those -- across those platforms.

是的。邁克，是麗莎。所以我們在第一季度確實有一些分銷費用。正如我們宣布的那樣，我們已經在多個 CTV 平台和虛擬 MVPD 上發布。所以這絕對是——一旦你在這些平台上推出這些平台，就需要一點時間來增加收入。

I would say, second, first quarter, we do have a couple of programming items, including, as I mentioned in my prepared remarks, we're launching a new comedy in March. There's some marketing expenses associated with that as well. So those are strategic investments that we've certainly have been a part of our strategy and we'll continue to -- I do think you'll see us get back to margin improvement as the economy improves, related to both the ramp-up of our CTV and virtuals, but also, hopefully, here in the latter half of the year.

我會說，第二季度，第一季度，我們確實有幾個節目項目，包括，正如我在準備好的發言中提到的，我們將在三月份推出一部新喜劇。還有一些與之相關的營銷費用。所以這些是戰略投資，我們當然已經成為我們戰略的一部分，我們將繼續 - 我認為你會看到我們隨著經濟的改善而恢復利潤率改善，這與增長有關我們的 CTV 和虛擬電視，但也希望在今年下半年在這裡。

Got you. And in terms of -- you gave us your first quarter guidance, and I appreciate that, but can you kind of give us a sense of whether or not you see advertising building? Or you're still seeing softness as we head into the second quarter?

明白了就-你給了我們第一季度的指導，我很感激，但你能告訴我們你是否看到了廣告建設嗎？或者當我們進入第二季度時你仍然看到疲軟？

Yes. Q1 revenue is largely facing the same pressures that we've been talking about for the last few quarters and certainly that our peers are talking about. I would say direct response advertising is probably taking a bit harder hit than the general market or scatter market. We do -- despite the economic climate, some sort of bright spots is that our [CPMs] are growing. So I think as advertisers return and continue to spend, we think, hopefully, in the back -- latter half of the year, our rates are growing, which is, I think, bodes well for improvement as the economy improve.

是的。第一季度的收入在很大程度上面臨著我們過去幾個季度一直在談論的壓力，當然我們的同行也在談論同樣的壓力。我想說的是，直接反應廣告可能比一般市場或分散市場受到的打擊要大一些。我們這樣做 - 儘管經濟環境不佳，但一些亮點是我們的 [CPM] 正在增長。因此，我認為隨著廣告商回歸併繼續支出，我們認為，希望在今年下半年，我們的費率正在增長，我認為這是隨著經濟改善而改善的好兆頭。

We'll go next to the line of Craig Huber with Huber Research Partners.

我們將與 Huber Research Partners 一起探討 Craig Huber 的產品線。

A few questions, if I could, please. Just a broad question for you guys. On the economic front, given all the markets you guys are in around the country and stuff, what is your sense on how the U.S. economy is doing now? Are there trends that are getting worse in your mind versus, say, how you were feeling 3 months ago as you look at your operations and talk to your advertisers, et cetera, out there? How do you feel on the economy right now?

如果可以的話，請問幾個問題。只是問你們一個廣泛的問題。在經濟方面，考慮到你們在全國各地的所有市場，你們對美國經濟現在的表現有何看法？與 3 個月前您查看您的運營情況並與您的廣告商等交談時的感受相比，您的想法中是否存在越來越糟糕的趨勢？您如何看待現在的經濟？

Craig, it's Lisa. I would categorize it more from a national marketplace and a local marketplace. I do think the national ad climate is more under pressure than our local markets. Certainly, our local businesses on the Local Media side, make up about 2/3 of our core advertising and they've held up much better than our national advertising spend. I would say with inflationary pressures, geopolitical, those sorts of things, those are the types of pressures that are on the national business, whether that's being sold in our local markets or at Scripps Networks.

克雷格，是麗莎。我會將其更多地歸類為國家市場和本地市場。我確實認為全國廣告環境比我們當地市場承受的壓力更大。當然，我們在本地媒體方面的本地業務約占我們核心廣告的 2/3，而且它們的表現比我們的全國廣告支出要好得多。我會說通貨膨脹壓力、地緣政治等等，這些都是對國家業務的壓力類型，無論是在我們當地市場還是在 Scripps Networks 銷售。

And then secondly -- this is a similar question from before. You're up -- for your cost, your Scripps Networks is up high single digits year-over-year in the first quarter. I assume you're not saying you're expecting that sort of rate of increase of costs for the remainder of the year? How do you think about that?

其次——這是之前的一個類似問題。你起來了 - 對於你的成本，你的 Scripps Networks 在第一季度同比增長了高個位數。我假設您不是說您預計今年剩餘時間的成本增長率會如此？你怎麼看？

No, Craig, we don't anticipate that to be the trend for the full year.

不，克雷格，我們預計這不會成為全年的趨勢。

Okay. And then my -- I have a nitpick question. Your subscribers for your retrans subs, you've been saying they were down mid-single digits, I believe, in recent quarters year-over-year net of OTT benefit. How did that track in the fourth quarter, please?

好的。然後我 - 我有一個挑剔的問題。你的重傳訂閱者，你一直在說他們下降了中等個位數，我相信，在最近幾個季度的淨 OTT 收益中。請問第四季度的情況如何？

Yes. So similar to what we said last quarter, we are still tracking down mid-single digits on a net basis, which aligns with both past modeling and our future modeling.

是的。與我們上個季度所說的非常相似，我們仍在淨值基礎上追踪中個位數，這與過去的模型和我們未來的模型一致。

Okay. Great. And then my last question, if I could. On the -- I'm trying to bring in some sports programming here in the coming quarters. And -- how are you feeling that's going to fit into your portfolio in terms of where it's going to slot in at? I mean is some of that going to be in the primetime schedules so you lose out on the primetime? Are you allowed to do that? I mean how are your contracts written here? Or you can try and slot it in, in some of these CW stations that you have? Just walk us through the strategy or how you're sort of thinking about that, please. And also, what sort of sports are you trying to go after?

好的。偉大的。然後我的最後一個問題，如果可以的話。在 - 我試圖在未來幾個季度在這裡引入一些體育節目。而且 - 你覺得它會如何融入你的投資組合，就它的位置而言？我的意思是其中一些會出現在黃金時段的時間表中，所以您會錯過黃金時段嗎？你可以這樣做嗎？我的意思是這裡的合同是怎麼寫的？或者您可以嘗試將其插入您擁有的一些 CW 電台？請向我們介紹一下該策略，或者您是如何考慮的。還有，你想從事什麼樣的運動？

Sure. Really, really good ones. Sure. From -- it depends on what they are talking about, league or team. If we're talking about team, we're mostly talking about the use of our independent stations or second stations in our markets in order to accommodate, I would say the team's transition -- the moment of transition they're all experiencing as we witness the implosion of the RSN model. So that's really not an issue of a big 4 local station. It's much more an issue of an independent opportunity.

當然。真的，非常好的。當然。來自——這取決於他們在談論什麼，聯盟或球隊。如果我們談論團隊，我們主要是在談論在我們的市場中使用我們的獨立站點或第二個站點來適應，我會說團隊的過渡——他們都在經歷我們的過渡時刻見證 RSN 模型的內爆。所以這真的不是四大地方台的問題。這更像是一個獨立機會的問題。

If we're talking about leagues, remember that the interesting thing about ION is we not only control all of the programming decisions, we also control all of the affiliates. And so we have the ability to bring sports onto our platform on the weekends, in prime, in whatever way we think makes sense for both the league benefit and for our benefit. And so you'll see us use our distribution -- and this is sort of what I was getting at in my prepared remarks, use our distribution to reach large audiences for the benefit of the leagues and for the benefit of the economics of our company.

如果我們談論聯賽，請記住 ION 的有趣之處在於我們不僅控制所有的節目決策，我們還控制所有的附屬機構。因此，我們有能力在周末以我們認為對聯盟利益和我們利益都有意義的任何方式將體育運動帶到我們的平台上。因此，您會看到我們使用我們的發行版——這就是我在準備好的發言中所要表達的意思，使用我們的發行版來吸引大量觀眾，以造福於聯盟和我們公司的經濟利益.

We'll go next to Steven Cahall with Wells Fargo.

我們將與 Wells Fargo 一起去 Steven Cahall。

Maybe first, Adam, just to continue on that line of questioning. As you see this opportunity to pursue more sports and particularly sports at the national level, can you just talk about how you think about the cost model of that? I think I've kind of picked up that you're not looking to just underwrite sports the way media companies have traditionally. So is there scope out there with leagues and teams for revenue-sharing arrangements? Or what are some of the business models here where you can bring ION into this, but also kind of keep risk low?

也許首先，亞當，只是繼續提問。當你看到這個機會來從事更多的運動，尤其是在國家層面的運動時，你能談談你如何看待這種成本模式嗎？我想我已經意識到你不希望像媒體公司傳統的方式那樣只包銷體育。那麼，聯盟和球隊是否有空間進行收入分享安排？或者這裡有哪些商業模式可以將 ION 引入其中，同時又能保持低風險？

Yes. I mean, look, both from a local and national perspective, we believe that we brought a model to the marketplace that allows both the leagues and teams to mitigate the risk they're looking to do as well as to take advantage of our distribution. The new model is a little bit like the marketing funnel model, where in order for you to create the most value at the bottom of the funnel, whether that bottom of the funnel component includes sports betting, ticket sales, merchandise and D2C, the top of the funnel requires immense reach, and that's exactly what we deliver.

是的。我的意思是，從地方和國家的角度來看，我們相信我們為市場帶來了一種模式，允許聯盟和球隊降低他們想要做的風險，並利用我們的分銷。新模型有點像營銷漏斗模型，為了讓你在漏斗底部創造最大價值，漏斗底部是否包括體育博彩、門票銷售、商品和D2C，頂部漏斗的一部分需要巨大的影響力，而這正是我們所提供的。

And that's exactly why we're getting such a good reception in the marketplace. Because the leagues realize that going to a D2C-only strategy isn't necessarily going to serve them well over the long haul. It's interesting because I think a lot of sort of investors or maybe even the uninitiated have worried that this marks some sort of chasing of sports for us from an economics perspective. It's not at all that, right? I think what we're really talking about is that live sports is the most valuable content genre when it comes to drawing in and retaining the largest audiences to live linear TV. That's why it makes so much sense for us.

這正是我們在市場上受到如此好評的原因。因為聯盟意識到，從長遠來看，只採用 D2C 策略並不一定會對他們有利。這很有趣，因為我認為很多投資者，甚至可能是外行都擔心，從經濟學的角度來看，這標誌著我們對體育運動的某種追逐。根本不是這樣，對吧？我認為我們真正在談論的是，體育直播是最有價值的內容類型，因為它可以吸引和留住最多的線性電視直播觀眾。這就是為什麼它對我們如此有意義。

And in turn, live sports, don't forget, accounts for more than its fair share of the marketplace's ad dollars per programming hour viewed. And what I think is important to realize is that what we are bringing to the market is a new model that the leagues and teams can get behind because they understand it's about balancing both the revenue that they bring in as well as the reach in order for them to create greater value at the bottom of the funnel.

反過來，不要忘記，直播體育節目在市場上每觀看一小時節目所賺取的廣告收入超過其公平份額。我認為重要的是要認識到，我們為市場帶來的是一種聯盟和球隊可以支持的新模式，因為他們明白這是關於平衡他們帶來的收入和影響力，以便他們在漏斗底部創造更大的價值。

Great. And then I've got just 2 more. So maybe next just for Jason, on the '23 net retrans guide, is the up 30% or low 30s net distribution dollars. Is that the same as net retrans? Or is there any difference there? And that seems like a pretty low year for reverse comp. So just wondering how you're thinking about that.

偉大的。然後我還有 2 個。因此，在 23 年的淨重傳指南中，對於 Jason 來說，下一個可能是上漲 30% 或 30 多歲的低淨發行美元。這與淨重傳一樣嗎？或者那裡有什麼區別嗎？對於反向補償來說，這似乎是一個相當低的一年。所以只是想知道你是怎麼想的。

Yes. So yes, it is. It is net retrans, as we've talked about in the past on these calls from a Local Media perspective. And we do -- we talked for a while about the net distribution margin or net retrans margin and the timing of that really driving -- are being driven by the timing of network renewals and pay TV households. And this year, it definitely comes up very much in our favor.

是的。所以是的，它是。這是網絡重傳，正如我們過去從本地媒體的角度討論過這些電話會議一樣。我們確實——我們討論了一段時間的淨分銷利潤率或淨再傳輸利潤率以及真正推動的時間——是由網絡更新和付費電視家庭的時間驅動的。今年，它肯定對我們非常有利。

We do have 75 -- around 75% of our pay TV households renewing and we locked in all of our affiliate agreements last year at what we would say is very moderated increases versus what we've seen historically. So that -- all of that leads into that growth in net distribution dollars, which as you would assume, also drives a significant improvement in that distribution margin.

我們確實有 75 - 大約 75% 的付費電視家庭續約，我們去年鎖定了所有附屬協議，我們可以說，與我們歷史上看到的相比，增長非常溫和。所以——所有這些都會導致淨分銷美元的增長，正如你所假設的那樣，這也會推動分銷利潤率的顯著提高。

Yes. And then just lastly, you mentioned carriage on YouTube TV. Does Scripps have the ability to negotiate its local stations as well directly with vMVPDs? I think your broadcast peers do not and that's problematic for them with Paramount potentially renewing YouTube in May after the fubo deal. So I'm just wondering if your national networks give you a different relationship with vMVPDs than some of your peers?

是的。最後，您提到了 YouTube TV 上的馬車。 Scripps 是否有能力直接與 vMVPD 協商其本地站？我認為您的廣播同行不會，這對他們來說是有問題的，因為在 fubo 交易之後，派拉蒙可能會在 5 月份續訂 YouTube。所以我只是想知道您的國家網絡是否讓您與 vMVPD 的關係不同於您的一些同行？

Yes. I think they certainly do give us the opportunity to have a different relationship. We've chosen thus far to continue negotiating with the networks. Look, I mean, first of all, fubo is a pretty immaterial virtual MVPD distributor. I would say that the negotiation between the networks and the affiliate Boards are all about ensuring that the affiliates receive the proper value for the local signal.

是的。我認為他們確實給了我們建立不同關係的機會。到目前為止，我們選擇繼續與網絡進行談判。看，我的意思是，首先，fubo 是一個非常無關緊要的虛擬 MVPD 分銷商。我想說的是，網絡和附屬委員會之間的談判都是為了確保附屬機構獲得當地信號的適當價值。

And there's no question that the virtual MVPDs and their customers want the local feeds. So we just need to receive fair compensation. I would just remind investors that there -- these are not existential issues or existential negotiations. And I would think investors would be pleased that we are really seeking fair value. But this is an example of where the regulatory framework needs to catch-up to reality. The virtual MVPDs need to be considered MVPDs, just like cable and satellite because -- I mean what's the difference, whether the programming comes in over IP or cable or satellite or coax or fiber, it's essentially the same business, and broadcast affiliates should have the wherewithal to negotiate directly with the virtual MVPDs for the distribution of our signal with the networks out of the way.

毫無疑問，虛擬 MVPD 及其客戶需要本地提要。所以我們只需要得到公平的補償。我只想提醒投資者，這些不是存在的問題或存在的談判。我認為投資者會對我們真正尋求公允價值感到高興。但這是監管框架需要趕上現實的一個例子。虛擬 MVPD 需要被視為 MVPD，就像有線和衛星一樣，因為——我的意思是有什麼區別，無論節目是通過 IP 還是有線、衛星、同軸電纜或光纖，它本質上是相同的業務，廣播附屬公司應該有直接與虛擬 MVPD 協商分配我們的信號與網絡的資金。

And next, we'll be going to the line of Nick Zangler with Stephens.

接下來，我們將與 Stephens 一起討論 Nick Zangler 的台詞。

Just following up on that last note on fuboTV. Can the business model continue to operate as it is so long as the retrans fee, I guess, that you get from the networks are satisfactory to you? Or is this impasse that's going on right now, is this part of just a hard push to shift the models that you do negotiate directly with the vMVPDs going forward? Just how do you see this impact kind of playing out as vMVPDs continue to grow their subs?

只是跟進 fuboTV 上的最後一條記錄。只要您從網絡中獲得的轉播費令您滿意，這種商業模式能否繼續運營？還是這種僵局正在持續，這只是努力改變你與 vMVPD 直接協商的模型的一部分嗎？隨著 vMVPD 繼續增加他們的訂閱者，您如何看待這種影響？

That's a shrewd question to which I have no comments. I mean, look, I mean, again, we expect fair value in the distribution of our signals whether they're to traditional MVPDs or virtual MVPDs.

這是一個精明的問題，對此我無可奉告。我的意思是，看，我的意思是，我們再次期望我們的信號分配具有公允價值，無論是傳統 MVPD 還是虛擬 MVPD。

Got it. Got it. Okay. And then I did -- if you don't mind, I want to be a little bit more granular, I guess, on some of the trends that you're seeing in the ad market. Just kind of across our checks, if you look at the last few months, what we've seen is a very weak December, a soft start to January, but then from maybe that mid-January period onward, the checks have kind of suggested that week after week after week, ad spend continues to be improving.

知道了。知道了。好的。然後我做了——如果你不介意的話，我想我想更詳細一點，關於你在廣告市場上看到的一些趨勢。只是在我們的檢查中，如果你看看過去幾個月，我們看到的是 12 月非常疲軟，1 月開始軟弱，但從 1 月中旬開始，檢查有點建議一周又一周，廣告支出繼續改善。

And so I guess my pulse would kind of be a sequential improvement coming out of what could be a trough period in late December and January. Just curious if, on that hypergranular level, you would agree or if you're seeing anything different or if there's anything to parse out on the national versus local side?

因此，我想我的脈搏可能是從 12 月下旬和 1 月的低谷期中出現的連續改善。只是好奇，在超細化的層面上，您是否會同意，或者您是否看到任何不同的東西，或者是否有任何東西需要在國家和地方方面進行解析？

Yes. Let me start with local and then I'll jump to Scripps Networks. So I think, as I mentioned, certainly, the local ad sales marketplace has been in our top 5 categories. We've seen some that are up and some that are down in fourth quarter and continuing in January. So a couple of bright spots that we, I think, talked about last year. Automotive was up in fourth quarter by 24%. We also had -- home improvement services were up in the 10% range. And those 2 trends continued into January. So we were really pleased to see the resiliency there on the local side.

是的。讓我從本地開始，然後跳轉到 Scripps Networks。所以我認為，正如我提到的，本地廣告銷售市場肯定是我們的前 5 個類別。我們已經看到一些在第四季度上升，一些在下降，並在 1 月份繼續。因此，我認為我們去年談到了幾個亮點。汽車業在第四季度增長了 24%。我們也有——家庭裝修服務增長了 10%。這兩種趨勢一直持續到一月份。所以我們真的很高興看到當地的彈性。

I would say some of the other categories that are maybe more impacted by inflationary pressures, things like services and retail sales have lagged a bit both in fourth quarter and what we're seeing trending in first quarter. I would also say, we're definitely seeing different levels of momentum certainly between categories going forward. But as the economic forecasts are looking better in the back half of the year, we do see those improvements. I would also say very similar to the national ad marketplace, we are seeing ads placed closer to air dates. And so that hampers visibility a bit into the first quarter, but definitely see it coming in. But again, those guys are a little bit late.

我想說其他一些可能受通脹壓力影響更大的類別，比如服務和零售銷售在第四季度和我們在第一季度看到的趨勢都有所滯後。我還要說，我們肯定會看到不同類別之間肯定會出現不同程度的勢頭。但隨著今年下半年的經濟預測看起來更好，我們確實看到了這些改善。我還要說與國家廣告市場非常相似，我們看到廣告放置在更接近播出日期的位置。因此，這會阻礙第一季度的可見性，但肯定會看到它的到來。但是，那些傢伙又有點晚了。

I would say on the national side, so on the Scripps Networks side, some bright spots. I talked about the CTV category and the growth that we're going to see this year in CTV growing 40 -- plus 40% versus 2022.

我會說在國家方面，所以在斯克里普斯網絡方面，有一些亮點。我談到了 CTV 類別以及我們今年將看到的 CTV 增長 40——與 2022 年相比增長 40%。

So that is a bright spot for us. And then I would say while the scatter market has been soft, we are seeing some signs of improvement. There's an uptick, certainly an activity, what's in our pipeline and working business. And we've had advertisers that have been sort of sitting on the sidelines, come back in January -- starting in January. So those are some -- a little bit of green shoots and some bright spots that we're seeing certainly on the national side.

所以這對我們來說是一個亮點。然後我會說雖然分散市場一直疲軟，但我們看到了一些改善的跡象。有一個上升，當然是一個活動，我們的管道和工作業務中有什麼。我們有一些廣告商一直在觀望，他們會在 1 月份回來——從 1 月份開始。所以這些是一些——我們在國家方面肯定看到的一些新芽和一些亮點。

Got it. Super helpful. We've heard that to sitting on the sidelines, coming back in January. Last one for me. Your perspective on RSNs, you guys mentioned it. Is this model just headed for extinction? Is it broken? Why doesn't it work? And just in your view, high level, what is the best solution for local sports content distribution?

知道了。超級有幫助。我們聽說過坐在場邊，一月份回來。最後一個給我。你們對 RSN 的看法，你們提到了。這種模式是否即將滅絕？它壞了嗎？為什麼它不起作用？在您看來，高層，本地體育內容分發的最佳解決方案是什麼？

Yes. I mean the model is headed for extinction. There are likely to still be survivors in the largest of large markets, potentially where there is a co-ownership model. But fundamentally, even if things were economically different for the RSNs, and we weren't talking about the current situation that you're reading about in the news. The fact is that these teams and leagues need more distribution than just pay TV, and they need more ways to continue to reach their audiences. So the RSN model is broken because RSNs have traditionally essentially been an arbitrage business, sitting between an MVPD and a content creator or a sports team owner. And today, with pay TV declines as they have, the model just doesn't simply work. There's just not enough subs to sustain the kind of revenue that the teams have gotten in the past.

是的。我的意思是該模型正在走向滅絕。在最大的大型市場中可能仍有倖存者，可能存在共同所有製模式。但從根本上說，即使 RSN 在經濟上有所不同，我們也不是在談論您在新聞中看到的當前情況。事實上，這些球隊和聯盟需要更多的傳播，而不僅僅是付費電視，他們需要更多的方式來繼續接觸他們的觀眾。所以 RSN 模型被打破了，因為 RSN 傳統上本質上是一種套利業務，介於 MVPD 和內容創建者或運動隊所有者之間。如今，隨著付費電視的下滑，這種模式已經行不通了。只是沒有足夠的替補來維持球隊過去獲得的那種收入。

The antidote for this, the answer, is this new model that's potentially even nonexclusive but that brings the best of what broadcast television can be, which is over-the-air and pay TV and the potential for additional direct-to-consumer upside for these teams. So that's -- I mean, to me, the fundamental opportunity is for these teams and leagues to recognize that they can balance getting the reach they need to ensure that their sports, their teams, their -- are well set up for the future with fans, while also generating the kind of audiences that will create the revenues that will support the infrastructure they need to have a competitive team.

解決這個問題的方法，即答案，是這種新模式，它甚至可能是非排他性的，但它帶來了廣播電視的最佳功能，即無線和付費電視，以及額外直接面向消費者的潛在優勢這些團隊。所以這就是——我的意思是，對我來說，最基本的機會是讓這些球隊和聯盟認識到他們可以平衡獲得他們需要的影響力，以確保他們的運動、他們的團隊、他們的——為未來做好準備球迷，同時也產生了那種將創造收入的觀眾，這些收入將支持他們擁有一支有競爭力的團隊所需的基礎設施。

We'll go next to the line of Dan Kurnos with Benchmark Company.

我們將在 Benchmark Company 的 Dan Kurnos 旁邊進行討論。

Adam, who knew this is going to be such a sports call? I do want to stick with that for a second because maybe it helps frame the conversation around how many markets do you have in sort of prime sports markets where you have multi stick that you could just scale up. And obviously, we've kind of skirted around it, but I'll just say DSG skips the payment, right? So we're what, like a few weeks away from spring training here. And it feels like, MLB in particular, might get a little bit panicky and your phone might start to ring a little bit more.

亞當，誰知道這會是一個體育電話？我確實想堅持一秒鐘，因為它可能有助於圍繞您在主要體育市場中擁有多少市場進行對話，在這些市場中，您可以擴大規模。顯然，我們有點繞過它，但我只想說 DSG 跳過付款，對嗎？所以我們就是這樣，離這裡的春季訓練還有幾週的時間。感覺就像，尤其是美國職業棒球大聯盟，可能會有點恐慌，你的手機可能會開始響得更厲害。

So like how much does it matter if the leagues get involved? Obviously, the right situation -- and MLB is a little bit more complex than it is in, say, NBA or NHL, and just kind of framing up if you guys become part of that equation, like is there a way to get more involved on the DTC side? Or would you just be primarily on the distribution reach side and they can figure out their own DTC [crease]?

那麼，如果聯盟參與進來，這有多大關係呢？顯然，正確的情況——美國職業棒球大聯盟比 NBA 或 NHL 稍微複雜一點，如果你們成為那個等式的一部分，那就有點陷害了，比如有沒有辦法讓更多人參與進來在 DTC 方面？或者您主要是在分銷範圍方面，他們可以找出自己的 DTC [摺痕]？

No. Look, I mean, I think it depends on -- every deal is different. And I think what we've learned about the RSN model is that the cookie cutter, one model for every market, every team, it simply doesn't work that way anymore. I would tell you the phone has already been ringing off the hook on a variety of fronts.

不，看，我的意思是，我認為這取決於——每筆交易都是不同的。而且我認為我們對 RSN 模型的了解是千篇一律的模型，適用於每個市場、每個團隊的模型，它不再那樣工作了。我會告訴你，電話已經在各個方面打響了。

From your question of which markets are we actually well set up to do this in, the fact is there are the markets today that you see us already owning duopoly in or a second station, and then there are the markets today where we have additional optionality because of our ownership of an ION stick.

從你的問題來看，我們實際上在哪些市場上做得很好，事實是今天有一些市場你看到我們已經擁有雙頭壟斷或第二站，然後今天有一些市場我們有額外的選擇權因為我們擁有 ION 棒。

So I would not necessarily limit the opportunity for Scripps to just the stations that today fit inside the portfolio of local media. So in my prepared remarks, I was really talking about how we're thinking about the best and highest use of our distribution or our broadcast spectrum, looking at our assets as 1 collection. And what I'm talking about is the ability for us, with the right circumstances, to actually serve the needs of a local team, even if today you don't see us having a local duopoly, but we might have a second station already in the form of an ION stick. And there are ways for us to preserve ION's national reach and the very good margins and economics of the ION model while standing up new revenue streams, new opportunities on the local side.

因此，我不一定會將 Scripps 的機會僅限於今天適合當地媒體組合的電台。因此，在我準備好的發言中，我實際上是在談論我們如何考慮我們的分佈或我們的廣播頻譜的最佳和最高使用，將我們的資產視為一個集合。我說的是我們有能力在適當的情況下真正滿足當地團隊的需求，即使今天你看不到我們在當地有雙頭壟斷，但我們可能已經有了第二個站以 ION 棒的形式。我們有辦法保持 ION 的全國影響力和 ION 模式的良好利潤率和經濟性，同時在當地建立新的收入來源和新機會。

So with respect to the different teams, look, I think they're all working together. I mean I don't mean the teams are working together, I mean, the leagues -- from what I see, the leagues and the owners are working really well collaboratively together in order for them to identify ways to solve the problems that the team owners have. It's in everybody's best interest, including the American people and the fans that we don't allow live sports to become a pure DTC product. It won't be -- it won't work for the economics of the leagues, it won't work through the economics of the teams and it definitely won't work for the economics of the American people.

所以關於不同的團隊，看，我認為他們都在一起工作。我的意思是我不是說球隊一起工作，我的意思是聯盟——在我看來，聯盟和老闆們合作得非常好，以便他們找到解決球隊問題的方法業主有。我們不允許現場體育成為純粹的 DTC 產品，這符合每個人的最大利益，包括美國人民和球迷。它不會——它不會對聯盟的經濟起作用，它不會通過球隊的經濟起作用，它絕對不會對美國人的經濟起作用。

Yes. That's why -- I mean I was trying to phrase my question to stick, not specifically duopoly for that reason, Adam. I'm just trying to get a sense of how many prime markets you have beyond just your local duopoly, but we can kind of follow up on that later.

是的。這就是為什麼 - 我的意思是我試圖用措辭表達我的問題，而不是出於這個原因特別是雙頭壟斷，亞當。我只是想了解除了當地的雙頭壟斷之外，你們還有多少主要市場，但我們可以稍後再跟進。

A whole line. I mean if you look at the footprint, if you look at ION's footprint, okay, you will recognize that in many markets, we have a tremendous amount of distribution real estate, and that gives us tremendous optionality. We're always looking at making sure we're using that distribution to create the greatest value for the company and for shareholders. And that's what's behind this restructure and reorganization. It's not a cost-cutting exercise. It's truly a reorganization of the company to identify the way we see our assets instead as really the largest and most ubiquitous distribution platform that this country has.

一整行。我的意思是，如果你看看足跡，如果你看看 ION 的足跡，好吧，你會認識到在許多市場中，我們擁有大量的分銷房地產，這給了我們巨大的選擇權。我們一直在努力確保我們利用這種分配為公司和股東創造最大價值。這就是重組和重組背後的原因。這不是削減成本的活動。這確實是公司的重組，以確定我們看待我們資產的方式，而不是真正成為這個國家擁有的最大和最普遍的分銷平台。

Well, maybe I'll just follow up on Networks then and just ask, your comp actually gets a lot easier in 2Q, and I know that the macro is still messy so it's not like you're out of the woods. But I'm just trying to understand, like you gave us really good color on CTV and CTV growth. You've got new launches, you've got new carriage. Just trying to kind of piece all this together and balance out.

好吧，也許我會跟進網絡，然後問一下，你的 comp 實際上在 2Q 變得容易多了，而且我知道宏仍然很亂，所以你還沒有走出困境。但我只是想理解，就像你給了我們關於 CTV 和 CTV 增長的非常好的色彩。你有新的發射，你有新的馬車。只是想把所有這些拼湊起來並取得平衡。

I know there's no full year guide, but it feels like there should be generic outperformance relative to the national framework because of some of those puts and takes and then even beyond that without any sports upside. I'm just trying to get a sense of how much kind of organically [birthed] incremental growth you're going to have this year relative to whatever the macro is doing?

我知道沒有全年的指南，但感覺應該有相對於國家框架的一般表現，因為其中一些投入和投入甚至超過了沒有任何體育優勢的情況。我只是想了解一下，相對於宏觀正在做的事情，你今年將有多少有機 [出生] 的增量增長？

Yes. So I do think the back half of the year, the economy improves. I do think that we are well positioned for upside opportunity in the ad marketplace. I mean, we -- with the distribution that we have across virtual MVPDs, CTV and certainly, in my prepared remarks, I talked about the strength of ION as a top 5 broadcast network, but also a top 10 of all Nielsen rated -- Nielsen-measured networks, we are really well positioned to capitalize on an improving economy.

是的。所以我確實認為今年下半年，經濟會有所改善。我確實認為我們在廣告市場上處於有利地位，可以抓住上行機會。我的意思是，我們——通過我們在虛擬 MVPD、CTV 中的分佈，當然，在我準備好的發言中，我談到了 ION 作為前 5 名廣播網絡的實力，同時也是所有尼爾森評級中的前 10 名——尼爾森衡量的網絡，我們確實處於有利地位，可以利用不斷改善的經濟。

So -- and as I said, ubiquitous distribution, which is driving some of what you're seeing certainly in the -- my remarks on CTV. So as the year unfolds, I think it's going to be -- first quarter is going to be soft as we've indicated with our guide, but improving, as I mentioned before, some of the green shoots around the scatter market and certainly what we're seeing in some of our general market, people coming back into the marketplace, which is also a positive sign.

所以——正如我所說，無處不在的分佈，這正在推動你在 CTV 上肯定看到的一些東西。因此，隨著這一年的展開，我認為這將會是——正如我們在指南中所指出的那樣，第一季度將是疲軟的，但正如我之前提到的那樣，分散市場周圍的一些萌芽正在改善，當然還有什麼我們在我們的一些普通市場中看到，人們回到市場，這也是一個積極的跡象。

Got it. That's helpful. And just last, I mean, I don't know, like your retrans guide was -- your gross guide is better I thought than what we and consensus had in '23. So it sounds like rate, barring perhaps -- Mr. Ergen has been saying TVs going the way in newspaper, even though he reads newspapers, is still on a very solid trajectory. And on the flip side, your Q4 programming costs were substantially below what we would have thought. And in Jason's commentary, the outlook is it's got to be sort of implied that there's only modest growth here. So the virtual issue, notwithstanding, it feels like you guys -- I don't know what you have embedded in there for subs, but is there any way to kind of view what you think on a 3- or 5-year what sort of net growth looks like?

知道了。這很有幫助。最後，我的意思是，我不知道，就像你的轉譯指南一樣——我認為你的總體指南比我們在 23 年達成的共識要好。所以這聽起來像是速度，也許除外 - 埃爾根先生一直在說電視在報紙上走的路，即使他讀報紙，仍然在一個非常穩固的軌道上。另一方面，您的第 4 季度編程成本大大低於我們的預期。在 Jason 的評論中，前景是必須暗示這裡只有適度的增長。所以虛擬問題，儘管如此，感覺就像你們——我不知道你們為潛艇嵌入了什麼，但是有沒有什麼方法可以查看你們對 3 年或 5 年的看法？的淨增長是什麼樣的？

So I don't think we're going to give anything out that goes out 3 or 5 years. We are extremely pleased with the guide we gave this year, both on the growth side and the net side. And we -- beyond this year, obviously, the big reset this year, we do have a little over 20% renewing next year as well in the first -- at the end of the first quarter. So that will be another catalyst next year on top of, as we said, a different or moderation in network programming expense.

所以我認為我們不會提供任何 3 或 5 年的東西。我們對今年在增長方面和淨方面給出的指南感到非常滿意。而且我們 - 顯然，在今年之後，今年的大重置，我們明年以及第一季度末 - 確實有略高於 20% 的更新。因此，正如我們所說，這將是明年網絡編程費用的另一個催化劑。

Yes. Look, it's a very different story than our peers.

是的。看，這與我們的同齡人截然不同。

Yes. No, Jason, just can you just -- sorry, on color, can you just give us the cadence of the renewal for the 75% and the 20%?

是的。不，傑森，你能不能——抱歉，關於顏色，你能告訴我們 75% 和 20% 的更新節奏嗎？

Yes. It's about 50% at the end of Q1, about 30% at the end of Q2 and then the other 20% is kind of spread through end of Q3, end of Q4.

是的。第一季度末大約是 50%，第二季度末大約是 30%，然後另外 20% 分佈到第三季度末，第四季度末。

We have a follow-up question from the line of Craig Huber with Huber Research Partners.

我們有 Craig Huber 與 Huber Research Partners 的後續問題。

I'm just trying to -- curious on the virtual MVPDs, do they represent roughly 20% of your retrans subs? That's my first question. And my second one is, for your local TV stations, what's the update on the percentage of the viewers that consume your local content over-the-air, please?

我只是想——對虛擬 MVPD 感到好奇，它們是否代表了大約 20% 的轉播潛艇？這是我的第一個問題。我的第二個問題是，對於你們當地的電視台，通過無線方式觀看你們當地內容的觀眾百分比的最新情況是多少？

So on your first question, yes, they're around 20% of our sub base, the virtuals are.

所以關於你的第一個問題，是的，他們大約占我們子基地的 20%，虛擬是。

Based on market to market, it really depends. You have a market like Phoenix, which is a high OTA market, you're going to see a much greater percentage of the station's content being consumed OTA. I mean OTA is continuing its impressive growth. I mean, I think, about at this point, 1/3 of homes are considered digital antenna homes that is that they use a digital antenna exclusively or along with broadband. That continues to grow. It grew last year. We have seen in the testing that we've been doing and in the spend that we've been doing that demand for free television has never been higher. I mean demand for digital antennas hasn't been this high since before cable. And I think inflation has a lot to do with that. I think the content glut in the SVOD universe has a lot to do with that. And I think some of the work we're doing to continue to catalyze the growth of the OTA marketplace, will continue to impact that.

基於市場到市場，這真的取決於。你有一個像 Phoenix 這樣的高 OTA 市場，你會看到更大比例的電台內容被 OTA 消費。我的意思是 OTA 正在繼續其令人印象深刻的增長。我的意思是，我認為，大約在這一點上，1/3 的家庭被認為是數字天線家庭，即他們專門使用數字天線或與寬帶一起使用。那繼續增長。去年增長了。我們已經在我們一直在做的測試和我們一直在做的支出中看到，對免費電視的需求從未如此高漲。我的意思是自有線以來，對數字天線的需求從未如此高。我認為通貨膨脹與此有很大關係。我認為 SVOD 領域的內容過剩與此有很大關係。我認為我們為繼續促進 OTA 市場的增長所做的一些工作將繼續影響這一點。

We have no further speakers -- we have no further questions in queue at this time.

我們沒有其他發言者了——此時我們沒有其他問題要排隊。

Terrific. Thank you, Alan. Thanks to everyone for joining us today on today's earnings call. Have a good day.

了不起。謝謝你，艾倫。感謝大家今天加入我們今天的財報電話會議。祝你有美好的一天。

Ladies and gentlemen, that will conclude your conference call for today. Thank you for your participation and for using AT&T Event Teleconferencing. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與和使用 AT&T 活動電話會議。您現在可以斷開連接。