E W Scripps Co (SSP) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Scripps First Quarter 2023 Earnings Call. (Operator Instructions) And as a reminder, the call is being recorded. I'd now like to turn the call over to our host, Ms. Carolyn Micheli. Please go ahead.

女士們，先生們，感謝你們的支持，歡迎來到斯克里普斯 2023 年第一季度財報電話會議。 （操作員說明）作為提醒，電話正在錄音中。我現在想把電話轉給我們的主持人 Carolyn Micheli 女士。請繼續。

Thanks, Brad. 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，布拉德。大家早上好，感謝您加入我們討論 E.W. Scripps 公司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 in this call will be 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 company's 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. We'll hear this morning from Scripps' President and CEO, Adam Symson. Chief Financial Officer, Jason Combs, and then Scripps' Chief Operating Officer, Lisa Knutson. Here's Adam.

本次電話會議將討論某些非 GAAP 財務措施，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，也無意取代 GAAP 財務指標，可能與其他公司的用途或公式不同。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。今天早上我們將聽取 Scripps 總裁兼首席執行官 Adam Symson 的講話。首席財務官 Jason Combs，然後是 Scripps 的首席運營官 Lisa Knutson。這是亞當。

Thanks, Carolyn. Good morning, everybody. I'll start this morning with some of the news we've broken over the last few weeks in sports. Less than 6 months ago, we launched Scripps Sports because we saw the opportunity to leverage our unparalleled national reach and local market depth. Free over-the-air broadcast and all that comes with it is the most ubiquitous and fan-friendly of distribution; platforms. Since then, we've been exceptionally busy. Two of the deals we've been working on are now public. The announcement we made yesterday with the Vegas Golden Knights are thriving, National Hockey League Franchise and of course our partnership with the WNBA.

謝謝，卡羅琳。大家早上好。今天早上我將從過去幾週在體育界發布的一些新聞開始。不到 6 個月前，我們推出了 Scripps Sports，因為我們看到了利用我們無與倫比的全國影響力和當地市場深度的機會。免費無線廣播及其附帶的所有內容是最普遍且最受粉絲歡迎的分發方式；平台。從那時起，我們就異常忙碌。我們一直在進行的兩筆交易現已公開。我們昨天與維加斯金騎士隊宣布的消息正在蓬勃發展，國家冰球聯盟特許經營權，當然還有我們與 WNBA 的合作夥伴關係。

We're very pleased to be launching our first Scripps Sports programming this month. The WNBA Friday Night Spotlight on ION begins on May 26. What the WNBA gets from us is full nationwide reach through free over-the-air, connected TV services and cable and satellite.

我們很高興在本月推出我們的第一個 Scripps Sports 節目。 5 月 26 日，ION 上的 WNBA 週五晚上聚光燈開始。WNBA 從我們這裡得到的是通過免費的無線、聯網電視服務以及有線和衛星在全國范圍內覆蓋。

Next week, we expect to announce a high profile -- sponsored for our WNBA Friday Night franchise, a blue-chip advertiser that believes as we do it's high time women sports like the WNBA are given the same visibility as men sports, which these athletes, teams and fans deserve, the broadest of reach and appointment viewing consistency.

下週，我們預計將高調宣布贊助我們的 WNBA Friday Night 特許經營權，這是一家藍籌廣告商，它認為現在是時候像 WNBA 這樣的女性體育項目獲得與男性體育項目相同的知名度了，這些運動員、球隊和球迷值得擁有最廣泛的影響力和預約觀看的一致性。

We are thrilled to be providing these benefits to the WNBA at a time for burgeoning appreciation for and interest in women sports. And why wouldn't there be great interest? WNBA games are a display of intense compensation while the players, athleticism and personalities make for the very best television.

我們很高興能在女性運動日益受到重視和興趣的時候為 WNBA 提供這些好處。為什麼不會有很大的興趣？ WNBA 比賽是高薪的展示，而球員、運動能力和個性造就了最好的電視節目。

It's no wonder that last season, WNBA viewership was up 22% and even with limited reach. Now the vast distribution on ION will give the league maximum visibility. So fans everywhere on any television platform will gather together every Friday night for this franchise TV event. While the WNBA deal takes advantage of our national reach, yesterday's announcement with the Vegas Golden Knights is intensely local. Scripps Sports and our stations KTNV and KNCC in Las Vegas will, starting next season, be the exclusive local media partner for this incredibly popular NHL team ending the RSN model in Nevada and bringing hockey to the television platform, a big win for NHL fans, the Golden Knights and Scripps.

難怪上個賽季，WNBA 的收視率增長了 22%，而且收視率還很有限。現在，ION 上的廣泛分佈將為聯盟提供最大的知名度。因此，任何電視平台上各地的粉絲都會在每週五晚上聚集在一起觀看這個特許電視節目。雖然與 WNBA 的交易利用了我們的全國影響力，但昨天與維加斯金騎士隊的聲明非常本地化。從下個賽季開始，Scripps Sports 和我們在拉斯維加斯的 KTNV 和 KNCC 電視台將成為這支非常受歡迎的 NHL 球隊的獨家本地媒體合作夥伴，結束內華達州的 RSN 模式並將曲棍球帶到電視平台，這對 NHL 球迷來說是一個巨大的勝利，金騎士和斯克里普斯。

It's important for investors to hear those. From the beginning, we've pledged to be very financially disciplined to our approach to live sports even willing to walk away if an opportunity doesn't pencil for us.

投資者聽到這些很重要。從一開始，我們就承諾在進行現場體育賽事時嚴格遵守財務紀律，即使機會不適合我們，我們也願意走開。

Every one of our partnerships will enhance the value of our linear television business, be another catalyst for the continued growth of free over-the-air television and create shareholder value while representing a new model for the way teams and leagues can grow their fan bases and continue to create immense value for their stakeholders. There is no argument that live sports is the biggest driver of linear viewing and commands the highest advertising rates in television. We see our expansion into live sports as not only a value creator with the actual games but another important way to engage audiences with our TV stations and news brands.

我們的每一項合作夥伴關係都將提升我們線性電視業務的價值，成為免費無線電視持續增長的另一種催化劑，並創造股東價值，同時代表球隊和聯盟擴大粉絲群的新模式並繼續為他們的利益相關者創造巨大的價值。毫無疑問，體育直播是線性觀看的最大推動力，並且在電視中佔據了最高的廣告費率。我們認為，我們向直播體育領域的擴張不僅是實際比賽的價值創造者，而且是通過我們的電視台和新聞品牌吸引觀眾的另一種重要方式。

We launched Scripps Sports as part of a larger strategy to enhance the value of our core assets, our scale and distribution. We are positioning our company to capture opportunities in 3 principal ways: first, in the industry growth areas of news, sports and entertainment; second, with existing and emerging TV distribution platforms; and third, with data casting and other businesses enabled by ATSC 3.0.

我們推出 Scripps Sports 作為更大戰略的一部分，以提高我們核心資產的價值、我們的規模和分佈。我們將公司定位為以 3 種主要方式抓住機會：第一，在新聞、體育和娛樂等行業增長領域；第二，利用現有的和新興的電視分發平台；三是ATSC 3.0賦能數據投射等業務。

We are now in the midst of a company-wide reorganization of roles and responsibilities that centralizes management functions so our executives have the broadest possible view of Scripps' opportunity in these 3 growth areas and are able to move quickly to create value.

我們現在正處於全公司範圍內的角色和職責重組之中，集中了管理職能，因此我們的高管對 Scripps 在這 3 個增長領域的機會有最廣泛的看法，並能夠迅速採取行動創造價值。

Scripps Sports is a good example. The WNBA makes use of ION's existing national reach, while the Golden Knights partnership opens up the opportunity for us to launch a new independent station in the growth market of Las Vegas with valuable live sports as an anchor tenant for programming. Both cases are examples of us seeking the best and highest use for our spectrum to increase yield.

斯克里普斯體育就是一個很好的例子。 WNBA 利用 ION 現有的全國影響力，而與 Golden Knights 的合作夥伴關係為我們提供了機會，讓我們有機會在拉斯維加斯的增長市場推出一個新的獨立電視台，將有價值的現場體育賽事作為節目的主要承租人。這兩個案例都是我們尋求最佳和最高使用我們的頻譜以提高產量的例子。

In Scripps news, you see another good example of our focus on a content genre critical to creating value in linear television. After centralizing operations, we've now deployed our national news resources as the foundation for a company-branded network. Scripps news reaches nearly every U.S. household over the air and on connected TV. And it's designed to fully serve our local stations news consumers with objective, fact-based reporting. Scripps news now becomes an important driver of high-quality journalism across the entire company while helping us also avoid additional cost.

在 Scripps 新聞中，您會看到另一個很好的例子，說明我們專注於對在線性電視中創造價值至關重要的內容類型。在集中運營之後，我們現在部署了我們的國家新聞資源，作為公司品牌網絡的基礎。斯克里普斯新聞通過廣播和聯網電視幾乎傳遍了每一個美國家庭。它旨在通過客觀、基於事實的報導全面服務於我們當地電視台的新聞消費者。 Scripps 新聞現在成為整個公司高質量新聞的重要推動力，同時幫助我們避免額外成本。

In addition to building value with journalism and live sports, we continue to focus on both existing and emerging TV platforms. Our sports distribution and high-quality Scripps news content will bolster the use of free over-the-air television, and we continue to build our connected TV distribution as well. And we're seeing significant gains in advertising revenue there. And as you'll hear in a moment, we continue to leverage our strong partnerships with cable, satellite and virtual pay-TV service providers who, by the way, capture nearly 2/3 of America's 120 million TV households.

除了通過新聞和體育直播創造價值外，我們還繼續關注現有和新興的電視平台。我們的體育傳播和高質量的 Scripps 新聞內容將促進免費無線電視的使用，我們也將繼續建立我們的聯網電視傳播。我們看到那裡的廣告收入顯著增加。正如您稍後會聽到的那樣，我們將繼續利用與有線、衛星和虛擬付費電視服務提供商的強大合作夥伴關係，順便說一下，這些服務提供商佔據了美國 1.2 億電視家庭的近 2/3。

Our third strategic focus is the use spectrum for alternative business opportunities through ATSC 3.0. We are well into a collaboration with Nexstar, HPE and Sony. Together, we've built and are deploying a core network that leverages the new television standard to open up new data casting business opportunities. Combined, Nexstar and Scripps represent the single largest broadcast spectrum platform, unduplicated reach of nearly 90% of U.S. population. That includes significant contiguous spectrum along key transportation corridors, a major selling point for data casting services.

我們的第三個戰略重點是通過 ATSC 3.0 將頻譜用於替代商業機會。我們與 Nexstar、HPE 和索尼的合作進展順利。我們共同構建並正在部署一個核心網絡，利用新的電視標准開闢新的數據廣播商機。 Nexstar 和 Scripps 合併後代表了最大的單一廣播頻譜平台，無重複覆蓋近 90% 的美國人口。這包括主要交通走廊沿線的重要連續頻譜，這是數據廣播服務的主要賣點。

Now this is not a case of a hollow press release. but it's also not yet something to put in your financial models. Now that we have a core network, we'll next develop out the marketplace, testing with the auto industry, energy, agriculture and logistics among other potential customer bases. In addition, we are encouraged by the FCC's new future of TV initiative, several task forces created last month to accelerate the 3.0 transition and ensure that every American will continue to have access to free over-the-air television. While there's still much work to be done to create what BIA/Kelsey says could be a $10 billion to $15 billion marketplace for broadcasters, I am increasingly bullish about this new industry catalyst. And we'll make sure investors know when we have the first customers on board, as a signal of the potential to accelerate the opportunity.

現在這不是空洞的新聞稿。但它也不是可以放入您的財務模型中的東西。現在我們有了一個核心網絡，接下來我們將開發市場，測試汽車工業、能源、農業和物流等潛在客戶群。此外，我們對 FCC 的新電視未來計劃感到鼓舞，上個月成立了幾個工作組來加速 3.0 過渡，並確保每個美國人都能繼續獲得免費的無線電視。雖然 BIA/Kelsey 所說的為廣播公司創造一個價值 100 億至 150 億美元的市場還有很多工作要做，但我越來越看好這個新的行業催化劑。我們將確保投資者知道我們何時擁有第一批客戶，作為加速機會的潛力信號。

Scripps' recent sports distribution announcements, the scale of our national news brand, Scripps News, and the opportunity we see ahead with our spectrum should catch investors' attention. The company is doing what it has done so well time and time again over its 145-year history, creating shareholder value.

Scripps 最近的體育發行公告、我們國家新聞品牌 Scripps News 的規模，以及我們在頻譜方面看到的未來機會，應該引起投資者的注意。該公司在其 145 年的歷史中一次又一次地做著它已經做得很好的事情，為股東創造價值。

Economic cycles are short-term hurdles, but our strategic focus is long term, and we will move into the next economic upturn as we have in the past as a stronger company with a better operating profile, stronger margins and greater growth ahead. Now here's Jason.

經濟周期是短期的障礙，但我們的戰略重點是長期的，我們將像過去一樣進入下一個經濟好轉期，成為一家更強大的公司，擁有更好的運營狀況、更高的利潤率和更大的未來增長。現在是傑森。

Good morning, everyone. We're pleased to be reporting Q1 results that met or outperformed the guidance we gave back in February despite the challenging economic climate. In our Local Media division, revenue was down 4.5% and core advertising revenue was down 10% as local and national businesses continue to deal with ongoing inflationary pressures on consumer spending. However, excluding the impact of the Olympics and the Super Bowl in Q1 of last year, core revenue was down only 6%.

大家，早安。儘管經濟環境充滿挑戰，但我們很高興報告第一季度的業績達到或超過了我們在 2 月份給出的指導。在我們的本地媒體部門，收入下降了 4.5%，核心廣告收入下降了 10%，因為本地和全國企業繼續應對消費者支出的持續通脹壓力。然而，去年第一季度剔除奧運會和超級碗的影響，核心收入僅下降了 6%。

Distribution revenue was up 2.4% to $163 million, fueled by growth in virtual pay TV households and contractual step-ups. As of April, we've renewed 1/3 of the pay TV households we are resetting this year.

分銷收入增長 2.4% 至 1.63 億美元，這得益於虛擬付費電視家庭的增長和合同升級。截至 4 月，我們已經更新了今年重置的付費電視家庭的 1/3。

Local Media expenses declined by about 2%, aided by moderated network programming costs by our move to comScore and by tight expense management in this economic environment. Local Media segment profit was $46 million.

本地媒體費用下降了約 2%，這得益於我們轉向 comScore 降低了網絡編程成本，以及在這種經濟環境下進行嚴格的費用管理。本地媒體部門的利潤為 4600 萬美元。

Turning to the Scripps Networks division. Revenue for the first quarter was $216 million, down 9.5% from the prior year quarter when we reported industry-leading revenue growth. Network segment expenses were $165 million, a 7% increase tied to higher costs for distributing the networks. Segment profit for the networks was $52 million. In Other, we reported a loss of $1.5 million. Shared services and corporate expenses were $23.4 million. The loss attributable to shareholders of Scripps was $31 million or $0.37 per share. Restructuring costs for the quarter increased that loss by $0.15 per share. We announced in January that we are undergoing a company-wide reorganization and the restructuring costs are related to that work. It also includes a write-down of some programming we were using for our former network True Real. We are now leasing the spectrum to Jewelry Television.

轉向 Scripps Networks 部門。第一季度的收入為 2.16 億美元，比去年同期下降 9.5%，當時我們報告了行業領先的收入增長。網絡部分支出為 1.65 億美元，增長 7%，這與分發網絡的成本增加有關。這些網絡的部門利潤為 5200 萬美元。在其他方面，我們報告虧損 150 萬美元。共享服務和公司開支為 2340 萬美元。歸屬於 Scripps 股東的虧損為 3100 萬美元或每股 0.37 美元。本季度的重組成本使該虧損增加了每股 0.15 美元。我們在 1 月份宣布我們正在進行全公司範圍的重組，重組成本與這項工作有關。它還包括我們為以前的網絡 True Real 使用的一些程序的記下。我們現在將頻譜出租給珠寶電視。

As of quarter end, cash and cash equivalents totaled $16.5 million. Our net debt at quarter end was $2.9 billion and our net leverage was 5.1x per the calculation in our credit agreements. That's a bit higher than the end of the fourth quarter because in our trailing 8-quarter calculation, we've begun to lose the benefit of several quarters where the economy was bouncing back after the pandemic. In the 2 years since we acquired the Ion network, we paid down nearly $900 million in debt.

截至季度末，現金和現金等價物總計 1650 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 5.1 倍。這比第四季度末略高，因為在我們連續 8 個季度的計算中，我們已經開始失去經濟在大流行後反彈的幾個季度的好處。在我們收購 Ion 網絡後的 2 年裡，我們償還了近 9 億美元的債務。

Looking ahead to the second quarter of 2023, we expect total Local Media revenue to be flat to up in the low single-digit percent range. We expect Q2 local core ad revenue to be down mid-single digits. For the full year, we now expect local media distribution revenue to increase in the mid-teens percent range. That's a revision upward from February when we said we expected the full year to be up in the low teens percent range. In addition, we now expect 2023 net distribution dollars to increase by more than 40%, up from the 30% we guided to last quarter.

展望 2023 年第二季度，我們預計本地媒體總收入將持平至上升，處於較低的個位數百分比範圍內。我們預計第二季度本地核心廣告收入將下降中個位數。對於全年，我們現在預計本地媒體發行收入將在百分之十幾的範圍內增長。這是自 2 月以來的向上修正，當時我們表示我們預計全年將在較低的十幾%範圍內上漲。此外，我們現在預計 2023 年的淨分銷美元將增長 40% 以上，高於我們上一季度指導的 30%。

Also for the full year, we are bringing down our guidance for CapEx as we shift some cash spend into next year. We now expect 2023 CapEx to come in between $65 million and $75 million. Turning back to the second quarter. We expect Local Media expenses to be up in the low single digits. In the Scripps Networks division, we expect Q2 revenue to be down high single digits and expenses to be up mid-single digits due to higher distribution costs and the start-up costs for our WNBA agreement. Second quarter shared services costs are expected to be about $25 million. That's higher than normal for the second quarter because we shifted stock compensation costs from the first quarter of this year due to the reorganization. We expect about a $6 million loss in other in Q2.

同樣對於全年，我們將一些現金支出轉移到明年，因此我們將降低對資本支出的指導。我們現在預計 2023 年的資本支出將在 6500 萬至 7500 萬美元之間。回到第二季。我們預計本地媒體費用將以較低的個位數增長。在 Scripps Networks 部門，我們預計第二季度的收入將下降高個位數，而支出將上升到中個位數，這是由於更高的分銷成本和我們 WNBA 協議的啟動成本。第二季度共享服務成本預計約為 2500 萬美元。這高於第二季度的正常水平，因為由於重組，我們從今年第一季度轉移了股票補償成本。我們預計第二季度其他業務將虧損約 600 萬美元。

For the full year, we expect our free cash flow to fall in the range of $50 million to $100 million. We continue to place our highest capital allocation priority on paying down debt. Finally, we're on track with our expectations of realizing at least $40 million in annual savings from our company reorganization. We expect those savings to be mostly operationalized by the middle of next year, and we expect to reach a year-end 2023 run rate of around $20 million in savings.

對於全年，我們預計我們的自由現金流將在 5000 萬至 1 億美元之間。我們繼續將我們最高的資本配置優先級放在償還債務上。最後，我們有望實現每年至少 4000 萬美元的公司重組成本節約。我們預計這些節省的資金將在明年年中大部分投入使用，我們預計到 2023 年年底將節省約 2000 萬美元。

Excluding the programming amortization write-down, we expect to take about $15 million in restructuring charges this year. This includes $2.9 million in restructuring recognized in Q1 and the expectation that Q2 and Q3 have the largest charges of the year. Now here's Lisa to share highlights from both the Local Media and the Scripps Networks operations.

不包括計劃攤銷減記，我們預計今年將收取約 1500 萬美元的重組費用。這包括第一季度確認的 290 萬美元重組，以及預計第二季度和第三季度的支出將是今年最大的。現在 Lisa 將分享本地媒體和 Scripps Networks 運營的亮點。

Thanks, Jason, and good morning, everyone. Work at Scripps continued diligently through the first quarter on the company's restructuring plan. As Jason said, we are on track to realize the $40 million plus in savings we previously outlined. We are focused on both aggressively tackling the near-term challenges in the media marketplace and creating a more efficient, cost-effective and high-performing business, one that is well positioned for long-term value creation. While this has been a time of uncertainty for our employees, we are very proud that our teams have remained focused on the work at hand, to serve our audiences and communities and to deliver strong financial results.

謝謝，傑森，大家早上好。 Scripps 的工作在第一季度繼續努力完成公司的重組計劃。正如 Jason 所說，我們有望實現之前概述的超過 4000 萬美元的節省。我們既專注於積極應對媒體市場的近期挑戰，又專注於創建更高效、更具成本效益和高性能的業務，並為創造長期價值做好準備。雖然這對我們的員工來說是一個充滿不確定性的時期，但我們感到非常自豪的是，我們的團隊一直專注於手頭的工作，為我們的受眾和社區提供服務，並取得了強勁的財務業績。

The country's economic malaise continues to put pressure on our businesses. Local advertising remains relatively stronger than national largely due to the return of automotive spending, but we do feel pressure across the whole advertising marketplace. In Local Media, we continue to see softness in our largest core advertising category services. Services was down 14% in the quarter, with banks and insurance companies showing the largest decline. Our 2 strongest performing categories were Home Improvement and automotive. Auto hit its third consecutive quarter of year-over-year growth, driven by local dealers and domestic dealers group who finally need to move inventory off their lots. We see local dealers as the best opportunity for continued growth in auto this year. In addition, the chip shortage is about half of what it was at this time last year, which is another good sign of spending to come.

該國的經濟萎靡不振繼續給我們的企業帶來壓力。本地廣告仍然強於全國，這主要是由於汽車支出的回歸，但我們確實感受到了整個廣告市場的壓力。在本地媒體中，我們繼續看到我們最大的核心廣告類別服務疲軟。服務業在本季度下降了 14%，其中銀行和保險公司的降幅最大。我們表現最強勁的 2 個類別是家居裝飾和汽車。汽車銷量連續第三個季度實現同比增長，這得益於當地經銷商和國內經銷商集團最終需要將庫存從他們的地段轉移出去。我們認為本地經銷商是今年汽車持續增長的最佳機會。此外，芯片短缺約為去年此時的一半，這是支出即將到來的另一個好兆頭。

Another highlight of the quarter was the NCAA basketball tournament, which brought in nearly $2 million local core, up 13% from 2022. Now we are looking ahead enthusiastically to the NBA finals in June and the promotional dollars we expect ahead of that big linear television event. These 2 examples highlight the power and value of live sports.

本季度的另一個亮點是 NCAA 籃球錦標賽，它帶來了近 200 萬美元的本地核心收入，比 2022 年增長了 13%。現在，我們正在熱情地展望 6 月份的 NBA 總決賽，以及我們預計在大型線性電視之前的宣傳費用事件。這兩個例子突出了體育直播的力量和價值。

Local Media distribution revenue will continue to build this year as we move through the renewal of 3/4 of our subscriber households. We've already completed 1/3 of those renewing this year, and we're well underway with other big contracts. We continue to maintain strong partnerships with both legacy and virtual pay TV services as they recognize the value created for them by local stations.

隨著我們 3/4 的訂戶家庭的更新，今年本地媒體發行收入將繼續增加。今年我們已經完成了其中 1/3 的續約，我們正在順利完成其他大合同。我們繼續與傳統和虛擬付費電視服務保持牢固的合作夥伴關係，因為他們認識到本地電視台為他們創造的價值。

Turning to Scripps Networks. We once again are outperforming our peer group in terms of ad revenue. Across the portfolio, we saw increases in top general market categories, including pharma and restaurants; and declines in CPG, retail and media as well as a 20% decline in direct response advertising. DR is very sensitive to inflationary pressures as consumers tighten their spending. However, our hope is that the easing of inflation will bring back that important category quickly. And in the scatter market, we are seeing a sequential increase in dollars from Q4 to Q1 and, again, as we move through Q2. Bright spots in the quarter included a 33% increase in year-over-year revenue for core TV, which continues to benefit from high-profile trials.

轉向斯克里普斯網絡。在廣告收入方面，我們再次超越同行。在整個投資組合中，我們看到頂級一般市場類別有所增加，包括製藥和餐館； CPG、零售和媒體業務下降，直接響應廣告下降 20%。隨著消費者收緊支出，DR 對通脹壓力非常敏感。然而，我們希望通貨膨脹的緩解將迅速恢復這一重要類別。在分散市場中，我們看到美元從第四季度到第一季度連續增加，並且在我們進入第二季度時再次增加。本季度的亮點包括核心電視收入同比增長 33%，這繼續受益於備受矚目的試驗。

And for the full portfolio, connected TV revenue grew nearly 46% from Q1 of last year due to the growth in audience numbers and hours watched and the timing of our network launches. Another Q1 highlight comes from where our original series actor Age launched March 4 as the most watched new half-hour series in the network's history. We continue to draw more than 1 million viewers a week for this terrific sitcom.

對於整個產品組合，聯網電視收入比去年第一季度增長了近 46%，這歸功於觀眾數量和觀看時長的增長以及我們網絡發布的時間安排。第一季度的另一個亮點來自我們的原創劇集演員 Age 於 3 月 4 日推出的地方，成為該網絡歷史上收視率最高的新半小時劇集。我們繼續每週為這部精彩的情景喜劇吸引超過 100 萬觀眾。

Another recent bright spot for the network is our agreement with the WNBA. Our teams are now preparing to air WNBA games on ION beginning on May 26. This includes marketing the WNBA Friday Night Spotlight on ION franchise night, selling advertising and sponsorships for the games and ramping up our distribution network. We see this arrangement as similar to the way Cable Networks integrated sports into their entertainment programming. Viewers have adapted easily. The difference here is that audiences can get these games free over the air from us, which will both draw new eyeballs to ION and allow the WNBA tremendous new reach to its growing fan base.

該網絡最近的另一個亮點是我們與 WNBA 的協議。我們的團隊現在正準備從 5 月 26 日開始在 ION 上播放 WNBA 比賽。這包括在 ION 特許經營權之夜營銷 WNBA 週五晚上聚光燈、銷售比賽廣告和讚助以及擴大我們的分銷網絡。我們認為這種安排類似於有線網絡將體育節目整合到他們的娛樂節目中的方式。觀眾很容易適應。這裡的不同之處在於，觀眾可以從我們這裡免費獲得這些比賽，這既會為 ION 吸引新的眼球，也會讓 WNBA 對其不斷增長的球迷群產生巨大的新影響。

Another big event coming for ION is the Scripps National Spelling Bee. Please tune into the finals on Thursday, June 1 at APM Eastern to be wowed by some amazing young sellers. As you know, Scripps brought production of the spelling bee in-house last year, and we've built a high-quality production of the national competition, which reached more than 7 million viewers in 2022. That was up 150% from the year before. For this year, we've secured premium blue chip sponsors, including Tyson, Sonic, P&G and Bristol-Myers Squibb. Scripps is proud to be the steward of this iconic American educational program, which is nearly 100 years old.

ION 的另一項重大賽事是斯克里普斯全國拼字比賽。請收看 6 月 1 日星期四在 APM Eastern 舉行的決賽，讓一些了不起的年輕賣家驚嘆不已。如您所知，Scripps 去年在內部製作了拼字比賽，我們製作了高質量的全國比賽作品，到 2022 年觀眾人數超過 700 萬。比當年增長了 150%前。今年，我們獲得了頂級藍籌贊助商，包括 Tyson、Sonic、P&G 和 Bristol-Myers Squibb。斯克里普斯很自豪能夠成為這個具有近 100 年曆史的標誌性美國教育計劃的管理者。

A final business highlight comes from our local newsrooms. We have been working under a number of initiatives over the last few years to gain new consumer insights. We are learning -- what we are learning is informing our efforts to reinvent the way local news is created and delivered. We know our audiences want deeper, more contextual news, and they want us to engage them authentically. We also are using technology to plan and produce the news more efficiently and to get more reporters into the field.

最後一個業務亮點來自我們當地的新聞編輯室。在過去的幾年裡，我們一直在開展多項舉措，以獲取新的消費者洞察。我們正在學習——我們正在學習的是，我們正在努力重塑本地新聞的創建和傳播方式。我們知道我們的觀眾想要更深入、更有背景的新聞，他們希望我們真實地吸引他們。我們還利用技術更有效地規劃和製作新聞，並吸引更多記者進入該領域。

In addition, we're fostering greater collaboration between our local newsrooms and Scripps news to provide our communities with objective, fact-based and high-quality local and national news and information. All of this work supports our commitment to creating a better informed world and raising shareholder value. And now, operator, we're ready for questions.

此外，我們正在促進地方新聞編輯室與 Scripps 新聞之間的更大合作，以便為我們的社區提供客觀、基於事實和高質量的地方和國家新聞和信息。所有這些工作都支持我們致力於創造一個更明智的世界和提高股東價值的承諾。現在，接線員，我們準備好提問了。

(Operator Instructions) We can first go to Steven Cahall with Wells Fargo.

（操作員說明）我們可以先去 Wells Fargo 的 Steven Cahall。

Maybe first, Jason, so it sounds like net retrans is going to be better for the year and then definitely an improvement, I think, in your free cash flow expectations. And it sounds like maybe a little bit of an improvement in your EBITDA expectations in the first half of the year. So I can't do all the math this quickly. Do you expect to get any net deleveraging by the end of the year? Or as you swap out those stronger 21 quarters for '23, does it still like it will sort of stay in this low 5s? And then secondly, for Adam, so you've got a couple of the sports deals now done, which look really solid. We've seen one of your peers do a deal with a team that was on Diamond Sports Group and they've also said that there could be some litigation associated with that. How do you look at the Diamond sports portfolio? Do you think it creates opportunities? Or are you going to kind of wait and see how some of those things play out since those situations seem a little more complicated.

也許首先，Jason，所以聽起來淨重傳今年會更好，然後我認為肯定會改善你的自由現金流預期。聽起來您今年上半年的 EBITDA 預期可能會有所改善。所以我不能這麼快算完所有的數學。您預計到今年年底會出現淨去槓桿化嗎？或者當你用 23 年換掉那些更強的 21 個季度時，它是否仍然喜歡它會保持在這個低 5s？其次，對於亞當，你已經完成了幾筆體育交易，看起來非常穩固。我們已經看到您的一位同行與 Diamond Sports Group 的一支球隊達成交易，他們還表示可能會涉及一些訴訟。您如何看待鑽石體育產品組合？你認為它創造機會嗎？還是您會稍等片刻，看看其中的一些事情是如何發生的，因為這些情況似乎有點複雜。

Thanks, Steve. So on the leverage question, so the headwinds we're facing in are certainly putting pressure on our leverage. You saw that with the move from 4.7 at the end of last year to 5.1 at the end of this year. And as you referenced, that's going to create some challenges on our rolling 2-year EBITDA. So given those headwinds, I would expect to see leverage move up a bit more in the back half of this year. But as you kind of fast forward to next year, you look towards at the end of 2024, we'll have the benefit of a really strong and robust political cycle. The full year impact of all the distribution step-ups that we have cycling in this year and a rebounding economy, we'd expect to be at a much better leverage point next year -- in 2024 than we are right now.

謝謝，史蒂夫。所以在槓桿問題上，我們面臨的逆風肯定會給我們的槓桿帶來壓力。你看到了從去年年底的 4.7 到今年年底的 5.1。正如您所提到的，這將對我們滾動的 2 年 EBITDA 造成一些挑戰。因此，鑑於這些不利因素，我預計今年下半年槓桿率會進一步上升。但是當你快進到明年時，你期待到 2024 年底，我們將受益於一個真正強大和強勁的政治週期。我們今年循環的所有分銷升級和經濟反彈的全年影響，我們預計明年 - 2024 年將處於比現在更好的槓桿點。

Thanks for the question, Steve. Yes, I think we are off to a fast start. I think we've told investors from the beginning we expect to do deals that are accretive for Scripps and that create additional profit for the company. And thus far, all things look exactly as we promised.

謝謝你的問題，史蒂夫。是的，我認為我們很快就開始了。我想我們從一開始就告訴投資者，我們希望進行對 Scripps 有利的交易，並為公司創造額外利潤。到目前為止，一切看起來都和我們承諾的一模一樣。

I don't want to comment on anybody else's deal. I would say Diamond Sports in general and the collapse of the RSN model does open up significant opportunity for us and broadcasters. And I think there are a number of opportunities continuing to present themselves, whether they be because the RSN is not going to be in a position to continue to carry a team's sports or because a league is looking for an alternative vehicle to reach more Americans.

我不想評論任何人的交易。我會說 Diamond Sports 總體而言，RSN 模式的崩潰確實為我們和廣播公司打開了重要的機會。而且我認為有很多機會繼續出現，無論是因為 RSN 無法繼續承載球隊的運動，還是因為聯盟正在尋找替代工具來接觸更多美國人。

You saw that with the WNBA. The WNBA was looking to expand reach. I would tell you that certainly, the Golden Knights wanted to talk to us about the breadth of our reach because they recognize that engaging more fans, both in their core market as well as in their sphere of influence, is essential for the growth of their sport. So we bring that beyond just the collapse of the RSN. If you continue on with an RSN or with cable, you're essentially looking at a declining audience on that platform regardless because of cord-cutting. We would continue to look at opportunities to expand Scripps Sports locally and nationally. And I expect we'll have more say about that to come.

你在 WNBA 看到了這一點。 WNBA 希望擴大影響範圍。我肯定會告訴你，Golden Knights 想和我們談談我們的影響範圍，因為他們認識到吸引更多的粉絲，無論是在他們的核心市場還是在他們的影響範圍內，對於他們的增長至關重要運動。所以我們帶來的不僅僅是 RSN 的崩潰。如果您繼續使用 RSN 或有線電視，那麼無論是否因為剪線，您基本上都會看到該平台上的觀眾在減少。我們將繼續尋找在本地和全國范圍內擴展 Scripps Sports 的機會。我希望我們以後會有更多的發言權。

If I could just follow up with one for Lisa. Lisa, on the Connected TV revenue growth and the guidance for the year, as you then think about what the company is doing in sports, it seems like the sports audience is a very kind of connected TV first type of audience. So is there anything that you're doing to have that content sort of front and center for the connected TV world, whether it's app launches or branding or marketing on connected TV platforms?

如果我能跟進一個給麗莎就好了。麗莎，關於聯網電視收入的增長和今年的指導，當你想到公司在體育領域所做的事情時，體育觀眾似乎是一種非常喜歡聯網電視的觀眾。那麼，您是否正在做任何事情來讓這種內容成為聯網電視世界的前沿和中心，無論是應用程序發布、品牌推廣還是聯網電視平台上的營銷？

Steve, it's Adam. I'll take it. First of all, I think you're spot on. I mean the opportunity for us to bring sports to ION or to any of our local stations is not just about bolstering OTA. It's about bolstering linear television. And we see our distribution in the connected TV marketplace as linear television. It's not on demand. It's live, it's linear. It's just being delivered over a digital platform versus OTA versus pay TV. And you know we execute that all-of-the-above strategy. We are definitely working with our CTV partners to ensure that they recognize the opportunity we bring to the table when we're bringing this live sports. Because as you know, live sports is not something that has historically been available on the fast platforms. Well, now it will be on Ion, and now it will be with any local sports deals that we do.

史蒂夫，是亞當。我要買它。首先，我認為你是對的。我的意思是，我們有機會將體育運動帶到 ION 或任何我們當地的電視台，而不僅僅是支持 OTA。這是關於支持線性電視。我們將我們在聯網電視市場中的分佈視為線性電視。它不是按需提供的。它是實時的，它是線性的。它只是通過數字平台、OTA 和付費電視進行傳輸。你知道我們執行的是上述所有戰略。我們肯定會與我們的 CTV 合作夥伴合作，以確保他們認識到我們在直播體育賽事時帶來的機會。因為如您所知，體育直播並不是快速平台上歷史上可用的東西。好吧，現在它將在 Ion 上進行，現在它將與我們所做的任何本地體育交易一起進行。

So we're really ambitious and really excited about the opportunity. We'll certainly be doing some marketing of the WNBA on all of the platforms where the WNBA's existing fan base as well as the ION and WNBA fan bases that we want to expand into are, whether it be on social, on linear television in the connected TV marketplace.

所以我們真的雄心勃勃，對這個機會感到非常興奮。我們肯定會在 WNBA 現有粉絲群以及我們想要擴展到的 ION 和 WNBA 粉絲群所在的所有平台上對 WNBA 進行一些營銷，無論是在社交媒體上，還是在線性電視上聯網電視市場。

And next, we'll move on to Dan Kurnos with Benchmark.

接下來，我們將與 Benchmark 繼續討論 Dan Kurnos。

I have a bunch, but I'll try to limit myself to a handful. Adam, just around sports, can you talk about your ability to potentially increase programming around some of these marquee wins, is that a thought to you to fill in some other hours with original sports betting other stuff that we've seen in the past? And is there any way -- I know the lead generally take on the DTC responsibilities. Is there any way that if you market any the DT stuff and you're able to participate in some of the rev share if they do launch those initiatives?

我有一堆，但我會盡量將自己限制在少數。亞當，就體育而言，你能談談你有能力圍繞這些重大勝利增加編程嗎，你是否想用我們過去見過的原創體育博彩來填補其他時間？有什麼辦法——我知道領導通常會承擔 DTC 的責任。如果你推銷任何 DT 東西，如果他們確實推出了這些計劃，你是否能夠參與一些收入份額，有什麼辦法嗎？

Yes, absolutely. I'll start with the second question. Every deal is different. And so for example, yesterday, with the Golden Knights announcement, we also shared that we would be partnering together on the D2C opportunity with the Golden Knights. So it's going to be a nuance from market to market or from league to league. But I would expect you should continue to see us work to continue to participate in one way or another in D2C.

是的，一點沒錯。我將從第二個問題開始。每筆交易都是不同的。例如，昨天，隨著 Golden Knights 的宣布，我們還分享了我們將與 Golden Knights 合作開發 D2C 機會。因此，從市場到市場或從聯盟到聯盟，這將是一個細微差別。但我希望您應該繼續看到我們努力繼續以某種方式參與 D2C。

The premise of our partnership with these leagues and teams is that over-the-air broadcast and everything that it brings with it is the top of the funnel. It brings the greatest reach. And so we recognize the opportunity for both the leagues and the teams to create additional value further down that marketing funnel, whether it be through sports betting, through D2C, through ticketing and merch. And on some of those elements, we expect to participate going forward.

我們與這些聯盟和球隊合作的前提是無線廣播及其帶來的一切都是漏斗的頂端。它帶來了最大的影響力。因此，我們認識到，無論是通過體育博彩、D2C、票務和商品，聯盟和球隊都有機會在營銷漏斗的下游創造更多價值。在其中一些要素上，我們希望繼續參與。

And your thoughts, Adam, around incremental programming around those...

亞當，你的想法是圍繞那些……的增量編程。

Yes. Did you mean adjacent programming -- or did you mean...

是的。您的意思是相鄰編程——還是您的意思是……

Yes, exactly. So like pre posting, but like even beyond like additional half hours or something just dedicated to that stuff that might replace ION program. Is that a thought or are you just not yet?

對，就是這樣。所以就像預發布一樣，但更像是額外的半小時或專門用於可能取代 ION 程序的東西。這是一個想法還是你還沒有？

Well, no. I mean we're definitely looking at working with the leagues on adjacent programming. They've been very, very open to recognizing the value that, that adjacent programming can have with respect to promoting the product, promoting the live games and their brands in Las Vegas. We'll be producing several different additional shows both with the Golden Knights and through our news operation in order to support the Golden Knights brand and the ratings of the games. We expect to use our ABC station as a massive promotional platform as we stand up that new independent in Las Vegas.

好吧，不。我的意思是我們肯定在考慮與聯盟合作進行相鄰的編程。他們非常非常願意認識到相鄰節目在推廣產品、推廣現場比賽及其在拉斯維加斯的品牌方面的價值。我們將與 Golden Knights 一起製作幾個不同的附加節目，並通過我們的新聞運營來支持 Golden Knights 品牌和遊戲收視率。我們希望將我們的 ABC 電台用作一個巨大的宣傳平台，因為我們在拉斯維加斯建立了這個新的獨立電台。

The work we've done with the WNBA and the NBA also recognizes that there's an opportunity for additional partnership around other programming, but keep this in mind. We have a really good business in ION. And so when we model these deals, we model them understanding that we expect to beat our hurdle rate. And so likewise, with adjacent programming, we have to make sure that the economics make sense to us.

我們與 WNBA 和 NBA 所做的工作也認識到，有機會圍繞其他節目建立更多的合作夥伴關係，但請記住這一點。我們在 ION 的業務非常好。因此，當我們對這些交易進行建模時，我們對它們進行建模，理解我們希望超過我們的門檻率。同樣，對於相鄰的編程，我們必須確保經濟學對我們有意義。

This is not a passion play for us. This is a business opportunity. And we're always looking to identify programming that will draw in a bigger audience, a better audience, more valuable audience, not just put sports programming for the sake of sports programming. So we really want to make sure that any time we transition from, for example, a very popular procedural to sports programming that it's going to benefit our platform.

這不是我們的激情遊戲。這是一個商機。我們一直在尋找能夠吸引更多觀眾、更好的觀眾、更有價值的觀眾的節目，而不僅僅是為了體育節目而製作體育節目。因此，我們真的想確保無論何時我們從非常流行的程序過渡到體育節目，它都會使我們的平台受益。

Got it. No, that's fair, and that's very helpful, Adam. Jason, just on the distribution side, well, actually, first, housekeeping. What's kind of your thoughts on the pace of political after you reported Q1? We've seen a little bit of a downtick from some of the peer group. Is there can be some color on 2Q on political assumption...

知道了。不，這很公平，而且非常有幫助，亞當。傑森，就分銷方面而言，實際上，首先是內務管理。報告 Q1 後，您對政治步伐有何看法？我們已經看到一些同行群體的情緒有所下降。是否可以在政治假設上對 2Q 有一些顏色......

Q2 political assumption?

Q2政治假設？

Dan, it's Lisa. So I would say our political forecast for '23 is on par with the last 2 years of off-cycle election year. So we expect to be in the $23 million to $25 million range for the year.

丹，是麗莎。所以我想說我們對 23 年的政治預測與非週期選舉年的最後兩年持平。因此，我們預計今年的收入將在 2300 萬至 2500 萬美元之間。

And 2Q is kind of similar to Q1 then, Lisa?

那麼 2Q 有點類似於 Q1，Lisa？

First quarter activity was a little bit ahead, I would say, and I would say Q2, certainly, there are some races in Kentucky and Colorado Springs that are helping us to potentially maybe continue to be a little bit ahead of Q1 of '21, but the quarter is still building, and I think Kentucky use (inaudible) next week. So that money is being built as we speak.

第一季度的活動有點領先，我會說，我會說第二季度，當然，肯塔基州和科羅拉多斯普林斯的一些比賽正在幫助我們可能繼續領先於 21 年第一季度，但該季度仍在建設中，我認為肯塔基州下週使用（聽不清）。所以在我們說話的時候，錢正在積累。

If you're referring kind of Q1 of this year versus kind of Q2, I would say, generally, we would expect in the same ballpark.

如果你指的是今年第一季度和第二季度，我會說，一般來說，我們會期望在同一個球場。

Okay. Perfect. Because I mean, look, with all the pieces, obviously, very strong for 2Q and for the full year. And we know -- I mean, I think you said in the script -- in the prepared remarks or at least in the release that some were roughly 1%. And so we know there's been mix of virtual. Virtual has been outperforming in Q1, and you're raising your guidance after what I think people generally view as a little bit of softness in linear reporting from the big MVPDs. So just help us think through kind of the rate versus sub balance maybe or sort of your sub expectations embedded in the balance of this year given the dynamics in Q1.

好的。完美的。因為我的意思是，看，所有的部分，顯然，第二季度和全年都非常強勁。我們知道——我的意思是，我想你在劇本中說過——在準備好的評論中，或者至少在發布中，有些大約是 1%。所以我們知道有虛擬的混合。 Virtual 在第一季度表現出色，在我認為人們普遍認為大型 MVPD 的線性報告有點疲軟之後，你提高了你的指導。因此，考慮到第一季度的動態，請幫助我們考慮一下利率與次級平衡的關係，或者考慮一下今年餘額中嵌入的次級預期。

Yes. So we -- I think we referenced earlier, we actually had our most recent reporting. Obviously, we do receive information on a bit of a lag was really positive. It was actually up when you netted in the virtual growth against the sub-churn on traditionals. That being said, we -- over a longer period of time, we don't take 1 quarter as our new number that we based our models off of. We, in general, believe that net sub churn will continue in that down mid-single-digit range on a trailing 12-month basis. And that is consistent with what we have baked into our outlook. And so that is kind of baked into the mid-teens on the gross distribution side.

是的。所以我們——我想我們之前提到過，我們實際上有最新的報告。顯然，我們確實收到了一些滯後的信息，這確實是積極的。當你在傳統的次級流失中獲得虛擬增長時，它實際上是上升的。話雖這麼說，我們 - 在更長的時間內，我們不會將 1 個季度作為我們基於模型的新數字。總的來說，我們認為淨子流失將在連續 12 個月的基礎上繼續保持在中等個位數範圍內。這與我們的觀點一致。因此，在總分銷方面，這已經進入了十幾歲的中期。

Next, we go to Michael Kupinski with Noble Capital Markets.

接下來，我們去 Noble Capital Markets 的 Michael Kupinski。

Just a couple of quick questions here. In terms of your guidance for your national media going into the Q2, I was wondering if Katz and ION performing equally? Or is one performing better than the -- or less than the guidance?

這裡只是幾個簡單的問題。關於您對國家媒體進入第二季度的指導，我想知道 Katz 和 ION 是否表現相同？或者一個人的表現好於——還是低於指導？

We definitely look at this as a portfolio and we sell as a portfolio. So I would say the malaise and the economy is certainly across all of our networks. I would tell you because ION has more exposure to general market and scatter, I think in my prepared remarks, I mentioned that scatter has improved from -- sequentially from Q4 to Q1, and we're seeing that same trend in Q2. And those networks that are more dependent on the general -- on VR advertising are probably a little bit more exposed than certainly ION is.

我們絕對將其視為一個投資組合，並將其作為一個投資組合出售。所以我想說的是，我們所有的網絡都存在不適和經濟問題。我會告訴你，因為 ION 對一般市場和分散有更多的敞口，我想在我準備好的發言中，我提到分散已經有所改善 - 從第四季度到第一季度，我們在第二季度看到了同樣的趨勢。那些更依賴於一般 - VR 廣告的網絡可能比 ION 更容易暴露。

Got you. And then given your expansion into sports programming, I was just wondering would the company consider owning or taking investments in sport teams?

明白了然後考慮到你擴展到體育節目，我只是想知道公司會考慮擁有或投資運動隊嗎？

Look, right now, our top priority is delevering. So as we've said before, were an opportunity to come up that made sense for us, we would look at it, but that's not really part of our strategy. We are a media company. We'd certainly look at the opportunity. We do have a very modest investment in an e-sports team. That team is -- or that series of teams is almost more like a media company itself. But I would say the most important thing to signal would be, look, we're really focused on paying down debt.

看，現在，我們的首要任務是去槓桿化。因此，正如我們之前所說，如果有機會提出對我們有意義的機會，我們會考慮它，但這並不是我們戰略的一部分。我們是一家媒體公司。我們當然會考慮這個機會。我們確實對電子競技團隊進行了非常適度的投資。那個團隊——或者說那一系列的團隊幾乎更像是一家媒體公司本身。但我想說最重要的信號是，看，我們真的專注於償還債務。

Got you. And I know that other broadcasters have made a big deal about starting to build out their core. But I know that you have already built your core in several of your markets, potentially offering data casting. How much is left to be done on that? And I assume that your plan is to base this in? So can you give us a thought about annualized CapEx that you plan to allocate to building out your core? And then, Adam, it sounded like you're pretty optimistic about getting some revenue from data casting. Are you kind of factoring that in as prospect? And if that's right, can you -- when do you think that you might -- we might start to see some meaningful revenue from data casting?

明白了而且我知道其他廣播公司在開始構建他們的核心方面做出了重大貢獻。但我知道你已經在你的幾個市場建立了你的核心，可能提供數據廣播。在這方面還有多少工作要做？我假設你的計劃是基於這個？那麼，您能否給我們考慮一下您計劃分配給核心建設的年度化資本支出？然後，亞當，聽起來你對從數據投射中獲得一些收入非常樂觀。您是否將其考慮在內？如果那是對的，你能不能——你認為你什麼時候可以——我們可能會開始從數據投射中看到一些有意義的收入？

Thanks, Mike. Yes, we are live with our core network in 4 markets, but you're pointing to exactly why we want to really get right the marketplace's development before we do signal any additional significant capital investment. I think we're really, along with Nexstar, taking a prudent approach to building this out. We have -- the most important thing we have is the spectrum to reach 90% unduplicated population. And as I said, a lot of that spectrum lined up on transportation corridors. Check. We have that in hand.

謝謝，邁克。是的，我們在 4 個市場中擁有我們的核心網絡，但您指出的正是為什麼我們要在發出任何額外的重大資本投資信號之前真正正確地發展市場。我認為我們真的和 Nexstar 一起，採取謹慎的方法來構建它。我們擁有 - 我們擁有的最重要的東西是達到 90% 未重複人口的頻譜。正如我所說，很多頻譜都排列在交通走廊上。查看。我們手頭有那個。

I think the next thing we're thinking about is what's the marketplace look like for this. How do we work in collaboration with private 5G networks to create a more efficient data platform for industry looking to push a lot of data through in a secure way. As we develop that marketplace, we will definitely be sure to be reaching back out to investors and sharing more details on how that's going.

我認為我們接下來要考慮的是市場對此的看法。我們如何與私有 5G 網絡合作，為希望以安全方式推送大量數據的行業創建更高效的數據平台。隨著我們開發該市場，我們一定會與投資者聯繫並分享更多有關進展情況的詳細信息。

I think it's probably early to tell you that this is something we're modeling into '24. I do think we're going to see revenue in '24. But do I think it's going to be the kind of material revenue that investors are going to get super excited about? Not quite yet. I think I would rather underpromise and overdeliver. So let us work on the marketplace, and then we'll definitely be back to investors with a high level of transparency as the business comes together.

我認為現在告訴你這是我們正在為 24 年建模的東西可能還為時過早。我確實認為我們會在 24 年看到收入。但我認為這會是投資者會超級興奮的那種物質收入嗎？還不完全是。我想我寧願少許諾，多做。因此，讓我們在市場上開展工作，然後隨著業務的整合，我們肯定會以高度透明的方式回報給投資者。

Next, we can go to Nick Zangler with Stephens.

接下來，我們可以和 Stephens 一起去 Nick Zangler。

This is Dean on for Nick. We were just wondering if you could peel back the onion on the go-to-market for the Golden Knights and WNBA broadcast because we're under the impression that the shoulder programming is the most lucrative aspect of those partnerships. And just maybe if you could level set us there.

這是尼克的院長。我們只是想知道您是否可以在 Golden Knights 和 WNBA 轉播的上市時去掉洋蔥，因為我們的印像是肩膀編程是這些合作夥伴關係中最有利可圖的方面。也許如果你能把我們放在那裡。

Sure, Dean. Look, we really are working off of a different playbook. So whenever you sort of know about the sports business model from the past, it's very different today with us. So for example, we put together a deal with the Golden Knights that allows us to acquire the rights to the Golden Knights bring to them full distribution both in market and beyond and monetize the Golden Knights live games.

當然，迪恩。看，我們真的在使用不同的劇本。因此，無論您何時了解過去的體育商業模式，今天對我們來說都是非常不同的。因此，例如，我們與 Golden Knights 達成協議，使我們能夠獲得 Golden Knights 的權利，為他們帶來市場內外的全面分銷，並通過 Golden Knights 現場比賽獲利。

So for us, -- that means essentially a minimum of 69 regular season games and the potential for even first round playoff games. And we expect that to be an accretive opportunity for us. Whether they're shoulder programming around it, this is not a deal done on what I would refer to as halo economics. Let's overpay for sports and then try to make up some sort of cost around the sport. We're really looking at deals that are accretive to us with a P&L within the live sports window.

所以對我們來說，這基本上意味著至少要打 69 場常規賽，甚至有可能參加季后賽首輪比賽。我們希望這對我們來說是一個增值的機會。無論他們是否圍繞它進行編程，這都不是我稱之為光環經濟學的交易。讓我們為運動多付錢，然後嘗試彌補這項運動的某種成本。我們真的在尋找在現場體育窗口中通過損益對我們有利的交易。

And the same is true with the WNBA. Our deal with the WNBA brings them full distribution on multiple platforms through our over-the-air platform so that every Friday night we're able to deliver all of the WNBA games to fans across the country in the local markets as well as nationally. And our deal has us creating profit for our company, thinking about the beginning of the game and the end of the game. Obviously, we expect to be able to retain a lot of the new audience we're bringing. But the economics that we built these plans off of do not count on a halo effect from overpaying for live sports.

WNBA 也是如此。我們與 WNBA 的交易讓他們可以通過我們的無線平台在多個平台上進行全面分發，這樣每個週五晚上，我們都能夠在當地市場以及全國范圍內向全國各地的球迷提供所有 WNBA 比賽。我們的交易讓我們為公司創造利潤，思考遊戲的開始和遊戲的結束。顯然，我們希望能夠留住我們帶來的大量新觀眾。但是，我們建立這些計劃所依據的經濟學並不指望為直播體育賽事多付錢而產生的光環效應。

Okay. That's helpful. And just a follow-up, if I can. We saw the CBS affiliate to boat in past come to a resolution and was wondering if you could add any color on how that resolved. And maybe does this uphold the sort of status quo for networks as intermediaries? Or do you think the affiliates have gained some additional leverage in these MVPD negotiations.

好的。這很有幫助。如果可以的話，只是跟進。我們看到 CBS 附屬公司過去達成了一項決議，想知道您是否可以添加任何顏色來說明該決議是如何解決的。也許這會維持網絡作為中介的現狀嗎？或者您認為附屬公司在這些 MVPD 談判中獲得了一些額外的影響力。

Well, look, I think there's no question that what you saw happen there was the affiliate body step up and require fair compensation for the distribution of our signals. And I think what's clear is the virtual MVPDs recognize the value of the live feeds coming in from our local stations as a result of everything from the local news to now the local sports we're talking about. So that value should be fairly compensating for us.

好吧，你看，我認為毫無疑問你看到的是附屬機構加強並要求對我們信號的分發給予公平補償。而且我認為很明顯，虛擬 MVPD 認識到從本地新聞到現在我們正在談論的本地體育的一切，從我們的本地電台進來的現場直播的價值。所以這個價值應該對我們來說是公平的補償。

I don't think it changed anything structurally or legally. I do think there are occasions where companies like Scripps, companies with other assets, not just local broadcast stations, are able to also do direct deals with virtual MVPDs. You're starting to see that as well in the marketplace. But at the end of the day, I think this is an affirmation of what we said to investors, there is tremendous value in the local distribution of these feeds. And the virtual MVPDs, they want that local feed because otherwise, they lose that which makes television inherently geographically local.

我不認為它在結構上或法律上有任何改變。我確實認為在某些情況下，像 Scripps 這樣的公司，擁有其他資產的公司，而不僅僅是本地廣播電台，也能夠與虛擬 MVPD 進行直接交易。您也開始在市場上看到這一點。但歸根結底，我認為這是對我們對投資者所說的話的肯定，這些飼料的本地分銷具有巨大的價值。而虛擬 MVPD，他們想要本地提要，否則，他們將失去使電視在地理上具有本地性的東西。

Sitting in Cincinnati and watching WCBS is not a good experience for that virtual MVPD. And so there was a lot of pressure from across the industry to ensure that we were structured appropriately and that the local affiliates were fairly compensated by the networks.

坐在辛辛那提看 WCBS 對於那個虛擬 MVPD 來說並不是一個好的體驗。因此，整個行業都面臨著很大的壓力，以確保我們的結構適當，並確保當地分支機構得到網絡的公平補償。

And next, we go to Craig Huber with Huber Research Partners.

接下來，我們將與 Huber Research Partners 一起拜訪 Craig Huber。

I got a few questions. First, on the new sports program that you guys are talking about, how would you model this in terms of how long do you think it might take to get the margins for those hours that you're programming on your networks and local TV stations to be at accretive or in line with margins or that right now? Is it after the first season? Do you think almost right away? How long are you -- what are you modeling? I'm curious.

我有幾個問題。首先，關於你們正在談論的新體育節目，您將如何根據您認為可能需要多長時間才能獲得您在網絡和當地電視台節目中的那些時間的利潤來建模？處於增值或符合利潤率或現在？是第一季之後嗎？你是不是馬上就想到了？你多久了——你在模仿什麼？我很好奇。

Craig, it's Jason. Yes, we model these deals to be gross profit positive year 1. And so take the WNBA deal, for example. We have a profitable programming lineup today on Friday nights. So we modeled the WNBA opportunity to clear our internal hurdle rates on the existing program profitability in that time slot. And we're taking that same approach on all the deals. Each deal needs to make sense from a financial perspective and be viewed as something that can be accretive to the enterprise. And I can tell you that we've already walked away from an opportunity where we were pretty far down the path on it because at the end of the day, we could make the deal economics get to a place that made sense for us.

克雷格，是傑森。是的，我們將這些交易建模為第一年毛利潤為正。因此以 WNBA 交易為例。今天週五晚上我們有一個有利可圖的節目陣容。因此，我們對 WNBA 機會進行了建模，以清除我們在該時間段內現有項目盈利能力的內部障礙率。我們對所有交易都採用相同的方法。從財務角度來看，每筆交易都需要有意義，並被視為可以為企業增值的事情。我可以告訴你，我們已經放棄了一個我們已經走得很遠的機會，因為在一天結束時，我們可以使交易經濟學達到對我們有意義的地方。

So just to reiterate what we've always said, we're focused on improving the near-term operating profile and economics of the company and long-term value creation. So we're not feeling like we need to sacrifice one for the other. We bring something very significant to these sports deals, and that's the reach that these leagues and teams really want.

因此，重申一下我們一直說的話，我們專注於改善公司的近期運營狀況和經濟狀況以及長期價值創造。所以我們覺得我們不需要為了另一個而犧牲一個。我們為這些體育交易帶來了一些非常重要的東西，這就是這些聯盟和球隊真正想要的影響力。

Okay. Great. And then the big picture I asked you guys this question on the last call 2, 3 months ago. On the economic front, given all the markets doing -- obviously, you have a national big national platform here, too, how are you guys feeling about the U.S. economy? Do you feel about the same as you felt 2 or 3 months ago when you last had this public call, worse or better about the economic backdrop here that you're operating in.

好的。偉大的。然後是大局，我在 2、3 個月前的最後一次電話會議上問了你們這個問題。在經濟方面，鑑於所有市場都在做——顯然，你們這裡也有一個全國性的大平台，你們對美國經濟有何看法？您的感受是否與 2 或 3 個月前您上次參加本次公開電話會議時的感受相同，對您經營所在的經濟背景更糟還是更好。

Craig, it's Lisa. Certainly, this downturn looks a little bit different than previous cycles. We been getting some mixed signals. I think GDP is growing, albeit slowly, and the job market is resilient, but there's volatility in the financial markets, which is also, I think, putting pressure in the advertising marketplace.

克雷格，是麗莎。當然，這次經濟衰退看起來與之前的周期略有不同。我們收到了一些混合信號。我認為 GDP 正在增長，儘管速度緩慢，就業市場具有彈性，但金融市場存在波動，我認為這也給廣告市場帶來壓力。

Thankfully, CTV continues to grow and as a growth driver, certainly for us. And I think the growth in automotive that we've seen in that category, especially on the local side over the last few quarters is also pointing to some resiliency, I think, in the advertising marketplace. However, inflation and worries about looming recession, I think will continue to put some pressure on our advertising revenue.

值得慶幸的是，CTV 繼續增長，並且作為增長動力，當然對我們來說也是如此。而且我認為我們在該類別中看到的汽車增長，尤其是過去幾個季度在本地方面的增長，我認為也表明廣告市場具有一定的彈性。然而，通貨膨脹和對即將到來的衰退的擔憂，我認為將繼續對我們的廣告收入造成一些壓力。

Okay. And then you mentioned auto over the last 3 quarters, it's up, obviously a low base given the macro environment the last few years and stuff, et cetera. Can you give us some numbers around that, how much it was up year-over-year in the quarter? I think you said auto, you expected it to be up as a category for TV stations in the rest of the year. I just want to confirm that.

好的。然後你提到過去 3 個季度的汽車，它上升了，考慮到過去幾年的宏觀環境等等，顯然是一個低基數。你能給我們一些數字嗎，這個季度同比增長了多少？我想你說的是汽車，你希望它在今年餘下的時間裡成為電視台的一個類別。我只是想確認一下。

Yes. The first quarter auto was up 4% over Q1 of '22. It was a little bit lumpy through the quarter. I think January, it was up significantly. Looking at Q2, auto is continuing to improve. In fact, in April, it was up 16%. So I think we're still obviously book in the quarter. And I would say, in some cases, booked are coming in later, but we really see that as continuing to improve.

是的。第一季度汽車比 22 年第一季度增長了 4%。整個季度有點起伏不定。我認為一月份，它顯著上升。看看第二季度，汽車行業正在繼續改善。事實上，在 4 月份，它上漲了 16%。所以我認為我們顯然仍然在本季度預訂。而且我會說，在某些情況下，預訂會稍後出現，但我們確實認為這會繼續改善。

Domestic dealer groups are up 12% year-over-year. Foreign dealer groups were up 1%. Local dealer groups, which is the largest dollars, we're up 8%, and we see that as the best opportunity to grow auto in the coming months.

國內經銷商集團同比增長 12%。外國經銷商集團上漲了 1%。本地經銷商集團，這是最大的美元，我們上漲了 8%，我們認為這是未來幾個月發展汽車的最佳機會。

I think you guys said your core advertising outlook where things are pacing out so far this core for the TV stations are tracking down low single digits. Is that similar for all 3 months of the second quarter here?

我想你們說過你們的核心廣告前景，到目前為止，這個電視台的核心正在追踪低個位數。第二季度的所有 3 個月都是這樣嗎？

I think there are some onetime anomalies certainly looking at Q2 in terms of the -- where things play out with the NBA finals and things like that. So as I think we had relatively strong in April because of the auto category and certainly some rebounds in Home Improvement. So a little early to tell. I think what we're finding is that advertisers are buying closer and closer to air date, and so that's causing us to have a little bit of a lack of visibility. And certainly, advertisers are looking for flexibility with their spend.

我認為，從 NBA 總決賽之類的事情來看，Q2 肯定存在一些曾經的反常現象。因此，我認為我們在 4 月份的表現相對強勁，因為汽車類別，當然還有家居裝修領域的一些反彈。所以說有點早。我認為我們發現的是，廣告商的購買越來越接近播出日期，因此這導致我們有點缺乏知名度。當然，廣告商正在尋求支出的靈活性。

Craig, just one clarification. I think you said down low single digits. Our guide was down mid-single digit.

克雷格，只是一個澄清。我想你說的是低個位數。我們的指南下降了中個位數。

Mid-single digits -- yes, sorry if I misspoke then. That's all I had.

中間個位數——是的，如果我當時說錯了，對不起。這就是我的全部。

And currently no further questions in queue at this time.

目前隊列中沒有其他問題。

Thank you, Brad, and thanks to everyone for joining us today. Have a great day.

謝謝你，布拉德，感謝大家今天加入我們。祝你有美好的一天。

And ladies and gentlemen, that does conclude the call for today. This call will be available for replay after 11:30 a.m. today and running through June 5 at midnight. You can access the AT&T playback system at any time by dialing 1 (866) 207-1041 and entering the access code 875-2910. International parties medal (402) 970-0847. That does conclude the call for today. You may now disconnect.

女士們，先生們，今天的呼籲到此結束。今天上午 11 點 30 分之後並持續到 6 月 5 日午夜，可以重播此電話會議。您可以隨時撥打 1 (866) 207-1041 並輸入訪問代碼 875-2910 訪問 AT&T 播放系統。國際派對獎章 (402) 970-0847。這確實結束了今天的呼籲。您現在可以斷開連接。