Q3 2023 The E.W. Scripps Co Earnings Call

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Speaker 1: Ladies and gentlemen, thank you for standing by. And welcome to the third quarter, 2023 earnings call. At this time, our participants are in a listen only mode. Later, there will be time for questions. If you wish to ask a question, please press star 10-0. The instructions will be given.

Ladies and gentlemen, thank you for standing by and welcome to the third quarter 2023 earnings call. At this time all participants are in a listen only mode. Later, there will be time for questions. If you wish to ask a question. Please press Star then zero.

Structures would be given again at that time, if you should require assistance during the call. Please press Star then zero.

Speaker 1: should require your assistance during the call, please press star to zero. As a reminder, this comp-

As a reminder, this conference is being recorded I would now like to turn the conference over to your host Carolyn Micheli. Please go ahead.

Speaker 1: Now I have to turn the conference over to your host, Carol and Michelley. Please go ahead.

Speaker 2: Thanks, Dawn. Good morning, everyone, and thanks 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. 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.

Thanks, Don Good morning, everyone and thanks for joining us for a discussion of the E. W. Scripps company's financial results and business strategies, you can visit Scripps Dot com for more information and a link to the replay of this call.

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.

Speaker 2: Includer on this call will be a discussion of certain non-GAAP financial measures that are provided as supplements to assist management in the public and 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' use or formate calculations. Included in our earnings release are the reconciliations of non-GAAP financial measures to the GAAP measures reported in our financial statement.

Later on 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 companies use or formation installations included in our earnings release or the.

<unk> of non-GAAP financial measures to the GAAP measures reported in our financial statements.

Speaker 2: We'll hear this morning from Scripps President and CEO Adam Simpson, Chief Financial Officer Jason Combs, and Chief Operating Officer Lisa Knutson. Here's Adam.

Well hear this morning from Scripps President and CEO, Adam Simpson, Chief Financial Officer, Jason Combes, and Chief operating Officer, Lisa Knutson, Here's Adam.

Speaker 3: Good morning, everyone. We're pleased today to be reporting third quarter financial results across the company that met or exceeded expectations.

Good morning, everyone. We're pleased today to be reporting third quarter financial results across the company that met or exceeded expectations. Our local AD sales teams executed at a high level. Despite a soft advertising market place on the network side connected television revenue growth continues to be a bright spot while the direct response.

Speaker 3: Our local ad sales team executed at a high level despite a soft advertising market.

Speaker 3: On the network side, connected TV revenue growth continues to be a bright spot, while the direct response and general market sales teams held their own.

And general market sales team held their own.

Speaker 3: In addition, careful expense management supported by the continued pursuit of a more efficient cost structure led to a stronger than expected segment profit number.

In addition, careful expense management supported by the continued pursuit of a more efficient cost structure led to a stronger than expected segment profit number.

Speaker 3: Alongside the rest of the advertising industry, we do face further macroeconomic headwinds as we wind down this year. As you know, the national advertising upfront season was weak across the industry. But as we head into the fourth quarter, we have seen some green shoots in the scatter market.

Alongside the rest of the advertising industry, we do face further macroeconomic headwinds as we wind down this year.

As you know the national advertising upfront season was a weak was weak across the industry, but as we head into the fourth quarter, we have seen some green shoots in the scatter market.

Speaker 3: Local media core advertising is coming into the quarter strong with our four top categories up year over year.

Local media core advertising is coming into the quarter strong with our four top categories up year over year.

Speaker 3: Jason and Lisa will get more color on the full advertising environment in just a moment.

Jason and Lisa will give more color on the full advertising environment in just a moment.

Despite the macroeconomic conditions that we are all contending with I really like the script setup for free cash flow growth over the year ahead, and here's why number one we have a robust new run rate for local media distribution dollars.

Speaker 3: Despite the macroeconomic conditions that we are all contending with, I really like the script set up for free cash flow growth over the year ahead. And here's why. Number one, we have a robust new run rate for local media distribution dollars.

Speaker 3: Number two, our local core and distribution revenue and national advertising revenue will benefit from continued, disciplined expansion into sports rights, fueling organic growth.

Number two our local core in distribution revenue and national advertising revenue will benefit from continued disciplined expansion into sports rights fueling organic growth.

Speaker 3: We're educating audiences about the appeal of free TV and making it easier than ever for people to watch it and for us to profit from.

Three we are educating audiences about the appeal of free TV, and making it easier than ever for people to watch it and for us to profit from it.

Speaker 3: For, we project double digit growth in our networks connected TV advertising revenue.

Four we project double digit growth in our networks connected television advertising revenue.

Speaker 3: And fifth, we will benefit from the high margin political ad revenue that broadcasters get as the primary beneficiaries of political ad spending projected now at $10 billion for the coming presidential election year. I'll start with our outlook.

And fifth we will benefit from the high margin political AD revenue that broadcasters get as the primary beneficiaries of political AD spending projected now at $10 billion for the coming presidential election here.

I'll start with our outlook in the retransmission ecosystem as we reported to the street in October we have now successfully completed distribution agreements covering about 75% of our local media pay TV households, without any blackout.

Speaker 3: As we reported to the street in October , we have now successfully completed distribution agreements covering about 75% of our local media paid TV households without any black

Speaker 3: The net effect of these negotiations for 2023 is as we promise.

The net effect of these negotiations for 2023 is as we promised growth of 15% in revenue and more than 40% in net distribution dollars.

Speaker 3: Growth of 15% in revenue and more than 40% in net distribution dollars.

Speaker 3: Analyzing that growth next year gives us a strong tail width.

Annualizing that growth next year, it gives us a strong tailwind.

Speaker 3: A lot has been said about the future of the MVPD and Broadcaster relationship, especially after the Disney Charger dispute.

A lot has been said about the future of the N V P D and broadcast or relationship, especially after the Disney charter dispute.

Speaker 3: But our experience leads me to believe that investors fears are off-base.

But our experience leads me to believe that investors fears are off base, the concessions charter negotiated including <unk> services in the bundle and bidding up the lower view channels will benefit the pay TV consumer benefit the ecosystem and therefore benefit broadcasters, especially since our program.

Speaker 3: The concessions charter negotiated, including at-spod services in the bindle and thinning out the lower-view channels, will benefit the pay TV consumer, benefit the ecosystem, and therefore benefit broadcasters, especially since our programming represents the very best of the channel lineup.

<unk> represents the very best of the channel lineup.

Speaker 3: Our negotiations and new deals are a testament to the strength of the MVPD broadcaster proposition.

Our negotiations and new deals are a testament to the strength of the mvpds broadcaster proposition.

Our renewals come as a result of both good negotiating and the strategic moves the company has been making over the last several years because now in addition to capturing full market value on rates, we're creating new value by expanding the number of our stations that received retrans.

Speaker 3: For example, in Las Vegas, we flipped an ion station to an independent carrying the Vegas gold denates as its anchor program.

For example, in Las Vegas, we flipped and I on station to an independent carrying the Vegas Golden Knights as its anchor programming.

Speaker 3: The new station, Vegas 34, joined our ABC affiliate there, expanding our advertising opportunity and distribution fees significantly. So despite erosion in the nation's pay TV landscape, scripts is now getting higher rates and getting paid on more stations than before. A key growth driver for us that comes as a direct result of the flexibility of our broadcast platform in service to our sports strategy.

The New station Vegas, 34 joined our ABC affiliate, there expanding our advertising opportunity and distribution fees significantly. So despite erosion in the nation's pay TV landscape scripts is now getting higher rates and getting paid on more stations than before.

Key growth driver for us that comes as a direct result of the flexibility of our broadcast platform in service to our sports strategy.

Speaker 3: Second, we're creating material new value by tapping into the passion American feel for their favorite teams and athletes and their love of the game.

Second, we're creating material new value by tapping into the passion Americans feel for their favorite teams and athletes and their love of the game.

Speaker 3: This passion has an unparalleled ability to unify us as a community, to bring us in front of the television and to do it in real time. Linear television, specifically broadcast TV, is made for this.

This passion has an unparalleled ability to unify us as a community to bring us in front of the television and to do it in real time.

Linear television specifically broadcast television is made for this the leagues know what the teams know what the fans nowhere and so these are the distributors and advertisers and that's the reason the Scripps is leading the broadcast a Renaissance in live sports.

Speaker 3: The leagues know it, the teams know it, the fans know it, and so do the distributors and advertisers.

Speaker 3: And that's the reason the script is leading the broadcast Renaissance in LifeSports.

Speaker 3: On the local side, we now have broadcast partnerships with two national hockey league teams, the recent Stanley Cup Champion Vegas Golden Knights, and the Arizona Coyotes in Phoenix.

On the local side, we now have broadcast partnerships with two National Hockey League teams. The recent Stanley Cup Champion Vegas, Golden Knights, and the Arizona Coyotes in Phoenix.

Speaker 3: We're broadcasting their games across a multi-state region to both teams' large regional fan base.

We are broadcasting their gear up their games across a multi state region to both teams large regional fan bases and we're seeing tremendous growth in viewership now that every TV households in the markets can receive their games.

Speaker 3: and we're seeing tremendous growth in viewership now that every TV household in the markets can receive their games.

Speaker 3: In Las Vegas, the Golden Knights have more than doubled their local ratings so far this season compared to last. And in Phoenix, the Arizona Coyotes ratings have increased the whopping 900% from their RFN distribution last year.

In Las Vegas, the Golden Knights have more than doubled their local ratings. So far this season compared to last.

And in Phoenix, the Arizona Coyotes ratings have increased a whopping 900% from their rsi in distribution last year.

Speaker 3: The equation is simple. More audience reach generates higher ratings to deliver scripts significant new revenue right now, primarily through incremental and meaningful core advertising revenue growth and higher distribution revenue for the independent stations on which they are.

The equation is simple more audience reach generates higher ratings to deliver script significant new revenue right now primarily through incremental and meaningful core advertising revenue growth and higher distribution revenue for the independent stations on which they are.

Speaker 3: On the core advertising side, I am pleased to be able to quantify the value we have just begun to create through our sports rights field.

On the core advertising side I am pleased to be able to quantify the value. We have just begun to create through our sports rights deals base.

Speaker 3: Based into our guide for the fourth quarter, is an incremental lift to local media core of four percentage points driven by our two local sports deals. And for full year 2024, we're projecting at least a three percentage point lift in core advertising from just those two local NHLV.

Baked into our guide for the fourth quarter as an incremental lift to local media core of four percentage points driven by our two local sports deals and for full year 2024, we're projecting at least a 3% point a.

A three percentage point lift in core advertising from just those two local NHL deals.

Speaker 3: And on the distribution side, adding retrans to these new independent stations with LiveSports is both growing our top-line revenue and expanding the portfolio's distribution margins because traditional and virtual MVPDs know how important this programming is for their customers.

And on the distribution side, adding retrans to these new independent stations with live sports is both growing our top line revenue and expanding the portfolio as distribution margins because traditional and virtual Mvpds know how important this programming is for their customers.

Speaker 3: With each new local rights agreement we signed, core advertising and distribution fees will grow, adding profit and generating free cash flow.

With each new local rights agreement, we sign core advertising and distribution fees will grow adding profit and generating free cash flow.

Speaker 3: Sports is a significant opportunity for us on the national level as well. We're pleased to have completed a very successful first season with the WNBA on Ion. We harness the power of our over-the-year signal, pay TV carriage and connected TV distribution to help the league increase its TV reach by nearly 30%.

Sports is a significant opportunity for us on a national level as well. We're pleased to have completed a very successful first season with the WNBA on ion we harnessed the power of our over the air signal pay TV carriage and connected TV distribution to help the league increase its TV reach by nearly 30%.

Speaker 3: A third of our viewers this season watched the WNBA Friday Night Spotlight on ION over the air, while 10% watched on FAST. All new reach for the league.

A third of our viewers this season watched the WNBA Friday night spotlight on eye on over the air while 10% watchdog fast.

All new reach for the league.

Speaker 3: Here too, live sports rights drove new value for Scripps with 65% of the revenue we generated from sponsorships and advertising coming from new to Scripps accounts.

Tier two lives sports rights drove new value for Scripps with 65% of the revenue we generated from sponsorships and advertising coming from it due to script accounts and.

Speaker 3: And as you know, advertising around live sports commands a hefty premium above our average unit rate.

And as you know advertising around live sports commands a hefty premium above our average unit rates were already well into the sales cycle for our second season with the WNBA and off to a very good start.

Speaker 3: We're already well into the sales cycle for our second season with the WMBA and off to a very good start.

Speaker 3: In the near future, we expect to tap into IOD's powerful reach for similar national rights agreements with leagues that recognize the power of partnership with Scripps Sports, setting us up well for growth in 2024 and beyond.

In the near future, we expect to tap into <unk> powerful reach for similar national rights agreements with leagues that recognize the power of partnership with the script sports setting us up well for growth in 2024 and beyond.

Speaker 3: As you can see, Scripps is enthusiastic, for good reason, about the ongoing value of the advertising-supported TV marketplace. And our third lever for 2024 will create new opportunity for growth in the over-the-air television market.

As you can see scripts as enthusiastic for good reason about the ongoing value of the advertising supported TV marketplace.

Our third lever for 2024 will create new opportunities for growth in the over the air television market.

Speaker 3: Given our company's outside share of over-the-air viewing, we've told you that we'd be working to accelerate OTA's growth.

Given our company's outside share of over the air viewing we've told you that we'd be working to accelerate <unk> growth.

Speaker 3: Last year, our marketing campaigns drove up to a 30% increase in digital antenna sales as reported by the antenna makers we work with.

Last year, our marketing campaigns drove up to a 30% increase in digital antenna sales as reported by the antenna makers, we work with but we still recognize the need to solve some of the challenges consumers face with digital antennas and we saw an opportunity to revolutionize the free TV.

Speaker 3: But we still recognize the need to solve some of the challenges consumers faced with digital antennas. And we saw an opportunity to revolutionize the free TV experience, especially at this time of rapidly rising streaming costs and relative indifference to the paid TV by those.

Experience, especially at this time of rapidly rising streaming costs and relative indifference to the pay TV bundle.

Speaker 3: That's why in August , we relaunched Tableau, an over-the-air TV device that aggregates OTA and connected TV fast channels with a DVR in a modern user experience that appeals to Gen Z as much as baby boomers.

That's why in August we relaunched tableau and over the air TV device that aggregates otas and connected TV fast channels with a DVR in a modern user experience that appeals to Gen Z as much as baby boomers.

Speaker 3: It allows you to stream and watch OTA on any TV, phone or tablet in your house through an app.

It allows you to stream in watch Otas on any TV phone or tablet in your house through an app.

Speaker 3: For the new Tableau consumer, it's a one-time cost, can be purchased bundled with or without a digital antenna, and today has no subscription fee.

For the new tableau consumer it's a one time cost can be purchased bundled with or without a digital antenna and today has no subscription fees.

Speaker 3: Tableau owners get free premium network and fast channel programming, every local NFL game, and all of the live professional and college sports on broadcast.

Tableau owners get free premium network and fast channel programming every local NFL game and all of the lie of professional and college sports on broadcast.

Speaker 3: In the two months since the SOF launch, we are seeing very enthusiastic consumer and media reviews. People have a real passion.

In the two months since the soft launch, we're seeing very enthusiastic consumer and media reviews.

People have a real passion for this product sale.

Speaker 3: Sales have been brisk through our retail partners, Amazon, Best Buy, and directly at TableauTV.com.

Sales have been brisk through our retail partners Amazon best buy indirectly at tableau TV Dot com.

Speaker 3: Just this week, Tableau is live on the Home Shopping Network and sold out minutes.

Just this week tableau is live on the home shopping network and sold out in minutes.

Speaker 3: soon will be sold on Walmart.com. We're launching the marketing campaign in earnest this quarter, and expect to share more metrics on future calls.

Soon we will be sold on Walmart Dot com, we're launching the marketing campaign in earnest this quarter and expect to share more metrics on future calls.

Speaker 3: For now, what's important to know is that Tableau will grow TV viewing over the year, especially for live sports, so we can turn more eyeballs into ad dollars.

Now what's important to know is that tableau will grow television viewing over the year, especially for live sports. So we can turn more eyeballs into AD dollars.

Speaker 3: Turning to Connected TV, our fourth free cash flow driver, our efforts to distribute and monetize our linear networks in the fast marketplace have quickly created a new $100 million business.

Turning to connected TV, our fourth free cash flow driver.

Our efforts to distribute and monetize our linear networks in the SaaS marketplace have quickly created a new $100 million business, we expect double digit growth on that $100 million next year.

Speaker 3: We expect double-digit growth on that $100 million next year.

Speaker 3: And of course, the fifth cash flow driver is the influx of high margin political advertising in the presidential election year. When we and our broadcast peers are best positions to capitalize on the $10 billion in projected annual election spending.

And of course, the fifth cash flow driver is the influx of high margin political advertising in the presidential election year, when we and our broadcast peers are best positioned to capitalize on the $10 billion in projected annual election spending.

Beyond these five growth drivers for 2024 is the ongoing benefit of our reorganization work, which Lisa will discuss in a moment, we remain focused on both aggressively tackling the near term challenges in the media marketplace, and creating a more efficient cost effective and high performing business.

Speaker 3: Beyond these five growth drivers for 2024 is the ongoing benefit of our reorganization work, which Lisa will discuss in a moment. We remain focused on both aggressively tackling the near-term challenges in the media marketplace and creating a more efficient, cost-effective and high-performing business.

Speaker 3: Strips is carving out a valuable, durable niche in this chaotic media ecosystem.

Scripps is carving out a valuable durable niche in this chaotic media ecosystem.

Speaker 3: And because of that, I encourage investors not to paint us with the same broad brush as companies that are irrationally expanding and streaming, grappling with constant subscriber churn, and all the while bleeding off their valuable businesses with no clear path to profitability.

And because of that I encourage investors not to paint us with the same broad brush as companies that are irrationally expanding into streaming grappling with constant subscriber churn and all the while bleeding off their valuable businesses with no clear path to profitability at.

Speaker 3: at scripts, our path to real, near and long-term value is clear.

At Scripps our path to real near and long term value is clear.

I'd like to end by recognizing an accomplishment about which I'm very proud the first National Emmy Award for Scripps News.

Speaker 3: I'd like to end by recognizing an accomplishment about which I'm very proud, the first National Emmy Award for Scripps News.

Speaker 3: As you know, we bought newsy 10 years ago and rebranded it's scripts news in January . It's now distributed not just on national platforms, but on our local stations and garnering strong ratings with our local audience.

As you know, we bought Newsy 10 years ago and rebranded at Scripps News in January it's now distributed not just on national platforms, but on our local stations and garnering strong ratings with our local audiences. This Emmy for outstanding Science technology, and environmental coverage is a testament to the impactful news.

Speaker 3: This ME, for Outstanding Science, Technology, and Environmental Coverage, is a testament to the impactful news organization we've built and America's need for its objective, FACS-based reporting.

<unk>, we built and Americas need for its objective fact based reporting.

Now here is Jason.

Speaker 3: Good morning, everyone. For the third quarter, we reported financial results that all met or exceeded the expectations we set in August , with another significant beat on company segment profit as we had in Q2.

Good morning, everyone.

For the third quarter, we reported financial results that all met or exceeded the expectations. We set in August with another significant beat on company segment profit as we had in Q2.

Speaker 3: Our segment profit over performance was driven by stronger than expected advertising revenue from local media core and in the Scripps Network segment, as well as continued expense management.

Our segment profit over performance was driven by stronger than expected advertising revenue from local media core and in the scripts network segment as well as continued expense management.

Speaker 3: For the third quarter, Scripps Networks Revenue was 215 million, exceeding our guidance because of better than expected connected TV and direct response response.

For the third quarter, Scripps networks revenue was $215 million exceeding our guidance because of better than expected connected television and direct response revenue.

Speaker 3: Networks Connected TV Revenue was up 75% from Q3 of 2022 if you back out the impact of our low margin programmatic product, which we began to sunset in Q2.

Networks connected TV revenue was up 75% from Q3 of 2022, if you back out the impact of our low margin programmatic product, which we began to sunset in Q2.

Scripps networks segment expenses were $166 million up only about 1% from the prior year quarter.

Speaker 3: Scripps Network's segment expenses were $166 million, up only about 1% from the prior year quarter. Segment profit in that

Segment profit in networks was about $50 million.

Speaker 3: In our local media division, total revenue was down 7% from the prior year quarter, mainly due to the absence of the election year political advertising revenue.

In our local media Division total revenue was down 7% from the prior year quarter, mainly due to the absence of the election year political advertising revenue.

Speaker 3: Local core advertising revenue was down about 3% from the prior year period.

Local core advertising revenue was down about 3% from the prior year period.

Speaker 3: Local media distribution revenue was up 20% to 198 million fueled by renewals in our cable and satellite agree.

Local media distribution revenue was up 20% to $198 million fueled by renewals in our cable and satellite agreements.

Speaker 3: We have now completed the renewals for all 75% of the subscriber households that we're up this year, and we are very pleased with the results. Local media expenses were flat to the prior year quarter.

We have now completed the renewals for all 75% of the subscriber households that were up this year and we are very pleased with the results.

Local media expenses were flat to the prior year quarter.

Local media segment profit was $75 million.

Speaker 3: In the segment labeled Other, we reported a third quarter loss of $6.3 million. Shared services and corporate

In the segment labeled other we reported a third quarter loss of $6 3 million.

Shared services and corporate expenses were $21 million.

Speaker 3: The loss attributable shareholders of scripts was $60 million or 19 cents per share.

The loss attributable to shareholders of Scripps was $16 million or <unk> 19 per share.

Speaker 3: Restructuring costs for the quarter accounted for 4 cents of the per share loss.

Restructuring costs for the quarter accounted for <unk> of the per share loss.

Speaker 3: We announced in January a company-wide reorganization and the restructuring costs are related to that work.

We announced in January a companywide reorganization and the restructuring costs are related to that work.

As of quarter end cash and cash equivalents totaled $16 million.

Speaker 3: As of quarter end, cash and cash equivalents totaled 16.

Speaker 3: Our net debt at quarter end was $2.9 billion, and our net leverage was 5.4 times per the calculations in our credit agreement.

Our net debt at quarter end was $2 9 billion and our net leverage was five four times per the calculations in our credit agreements.

Speaker 3: Looking ahead to the fourth quarter of 2023, in the Scripps Network division, we expect revenue to be down in the 10% range, but only down about 8%. If you back out the impact of the programmatic advertising products we discussed.

Look.

Looking ahead to the fourth quarter of 2023 and at Scripps Networks Division, we expect revenue to be down in the 10% range, but only down about 8%. If you back out the impact of the programmatic advertising product we discussed.

Speaker 3: The fourth quarter is being impacted by the industry-wide week up front season and ongoing softness in direct response.

The fourth quarter is being impacted by the industry wide weak upfront season, and ongoing softness in direct response spending.

Speaker 3: We expect fourth quarter networks segment expenses to be flat.

We expect fourth quarter networks segment expenses to be flat.

Speaker 3: We expect total local media revenue to be down in the low to mid-double-digit percent range since this is not a big election year.

We expect total local media revenue to be down in the low to mid double digit percent range. Since this is not a big election year.

Speaker 3: We expect local courier revenue to be up, low to mid single digits.

We expect local core AD revenue to be up low to mid single digits.

Speaker 3: In a tough ad industry environment, we expect to see the benefit of a 4% point lift in Q4 core due to our two local script sports degree.

In a tough AD industry environment, we expect to see the benefit of a four percentage point lift in Q4 core due to our two local Scripps sports agreements.

Speaker 3: Lisa will give more color in a moment about our strong start to the quarter with key core categories, including auto. Now I'd like to touch on two

Lisa will give more color in a moment about our strong start to the quarter with key core categories, including auto.

Now I'd like to touch on two full year local media revenue items we've.

Speaker 3: We've had stronger than expected 2023 political spending, especially from a contentious ballot issue in Ohio, and we now expect full year political ad revenue to reach at least $30 million.

We've had stronger than expected 2023, political spending, especially from a contentious valid issue in Ohio, and we now expect full year political AD revenue to reach at least $30 million.

Also since completing our retransmission renewals. We have said, we expect full year gross distribution revenue of $750 million and net distribution dollars to increase by more than 40% from 2022.

Speaker 3: Also, since completing our retransmission renewals, we've said we expect full-year gross distribution revenue of $750 million and net distribution dollars to increase by more than 40% from 2022.

Speaker 3: Back to the fourth quarter, we expect local media expenses to be up in the mid-single-digit range. That includes the cost of pay increases for key news-gathering roles at our local stations and costs associated with Scripps Sports.

Back to the fourth quarter, we expect local media expenses to be up in the mid single digit range that includes the cost of pay increases for key news gathering roles at our local stations and costs associated with Scripps sports.

Speaker 3: Fourth quarter chair services costs are expected to be about 20.

Fourth quarter shared services costs are expected to be about $22 million.

Speaker 3: We expect a segment labeled other to generate a loss of about 10 million as we continue to educate consumers about free over the air viewing and promote our cab load device as Adam discussed.

We expect the segment labeled other to generate a loss of about $10 million as we continue to educate consumers about free over the air viewing and promote our tableau device as Adam discussed.

Speaker 3: Due to the ongoing MacReaconomic headwinds facing our scripts networks division, we're also adjusting our full year free cash flow guide. We still expected to fall within our previous range, but at the low end between 50 and 60 million.

Due to the ongoing macroeconomic headwinds facing our Scripps networks Division. We're also adjusting our full year free cash flow guide, we still expect it to fall within our previous range, but at the low end between 50 and $60 million.

Speaker 3: because of the economy and because we continue to drop strong quarters from 2021 from our trailing eight quarters leverage calculate.

Because of the economy and because we continue to drive strong quarters from 2021 from our trailing eight quarters leverage calculation, we expect some upward pressure on our leverage ratio by year end <unk>.

Speaker 3: We expect some upward pressure on our leverage ratio by year end. However, we see a strong glide pass to bring that down a full turn to under five times from Q4 this year to the end of next-

However, we see a strong glide path to bring that down a full turn to under five times from Q4 of this year to the end of next year.

Speaker 3: That's due to the five free cash flow drivers that Adam enlisted, including our high margin revenue from the presidential year political advertising, connected TV and distribution revenue, and continued expansion of our sports rights revenue. And I want to strongly reiterate that we continue to place our highest capital allocation priority on paying down debt.

That's due to the five free cash flow drivers that Adam and listed including our high margin revenue from the presidential year political advertising connected TV distribution revenue and continued expansion of our sports rights revenue.

And I want to strongly reiterate that we continue to place our highest capital allocation priority on paying down debt.

Speaker 3: We're on track with our expectations of realizing more than 40 million in annual savings from our company reorganization. We expect those savings to be mostly operationalized by the middle of 2024 and we are on track as we've discussed to reach a year end 2023 run rate of around $20 million in annualized.

We're on track with our expectations of realizing more than $40 million in annual savings from our company reorganization, we expect those savings to be mostly operationalized by the middle of 2024, and we are on track as we've discussed to reach our year end 2023 run rate of around $20 million in annualized savings.

Speaker 3: Now, here's Lisa to share highlights from both the local media and Scripps Network operations.

Now here's Lisa to share highlights from both the local media and Scripps networks operations. Thanks, Jason and good morning, everyone I'd like to start this morning with some color on how fourth quarter is shaping up and then I'll give an update on our ongoing restructuring work and our local media and local media core advertising categories, we're seeing positive trends coming out of October services.

Speaker 4: Thanks Jason and good morning everyone. I'd like to start this morning with some color on how fourth quarter is shaping up. Then I'll give an update on our ongoing restructuring work.

Speaker 4: In our local media core advertising categories, we're seeing positive trends coming out of October . Services was up 9%, auto was up 10%, and if Q4 ends in positive territory, it would be the sixth consecutive quarter of auto growth. Home improvement, our third largest category in Q4, so far was up 13% in October , and retail was up 2%.

Up 9% auto was up 10% and if Q4 ends in positive territory. It would be the sixth consecutive quarter of audio growth home improvement our third largest category in Q4, so far was up 13% in October and retail was up 2%.

Speaker 4: We're also seeing good news and political advertising. The third quarter revenue of $9 million was higher than in Q3 of the past two off-cycle election years. We now expect to reach at least $30 million in political ad revenue this year. We're also optimistic about the large projected spending levels for next year's presidential election. Since local broadcasters continue to capture the lion's share of those dollars.

We're also seeing good news in political advertising the third quarter revenue of $9 million was higher than in Q3 at the path to off cycle election years, we now expect to reach at least $30 million in political AD revenue. This year. We're also optimistic about the large projected spending levels for next year's presidential election since local Brad.

Testers continue to capture the lion's share of those dollars.

Speaker 4: Turning to the Networks division, our third quarter connected TV and direct response revenue bolstered our results enough to be guidance by two percentage points. Ion, Ion mystery, bounce and court TV in particular outperformed our growth expectations in CTV.

Turning to the networks Division, our third quarter connected television and direct response revenue bolstered our results enough to beat guidance by two percentage points.

N ion midstream valves and court TV in particular outperformed our growth expectations in CTV.

Speaker 4: For the Network 4th quarter, we begin to see the impact of the weak industry-wide upfront season. We are far from alone among the national networks and seeing declines in up front revenue this year. The overall volume of dollars in the whole ecosystem is estimated to be down about 10%. Two areas of growth for scripts in the upfronts were bounce whose upfront dollars rose 6% and CPMs nearly 50%.

For the Networks' fourth quarter, we began to see the impact of the weak industry wide upfront season.

We are far from alone among the national networks and seeing declines in upfront revenue. This year. The overall volume of dollars and the whole ecosystem is estimated to be down about 10%.

Two areas of growth free scripts in the Upfronts were balanced whose upfront dollars rose, 6% and CPM.

Nearly 50%.

Speaker 4: and connected TV revenue for our portfolio networks was up nearly 60% year over year.

And connected television revenue for our portfolio of networks was up nearly 60% year over year.

Connected TV continues to be a big growth area for us outside the upfront as well in the third quarter alone. The weekly hours of viewing of our networks on SaaS platforms increased 17% from the prior quarter and 179% year over year. As we have said, we expect to end the year at nearly $100 million in <unk>.

Speaker 4: Connected TV continues to be a big growth area for us outside the upfront as well. In the third quarter alone, the weekly hours of viewing of our networks on fast platforms increased 17% from the prior quarter and 179% year over year.

Speaker 4: As we have said, we expect to end the year at nearly $100 million in total network CTV revenue. And for 2024, we are projecting a mid-teens percentage year-over-year increase in total dollars and more than a 30 percent increase if you back out the impact of the legacy programmatic product we're sunsetting. These projections include some new agreements that will be coming online early in the year.

Total network CTV revenue.

And for 2024, we are projecting a mid teens percentage year over year increase in total dollars and more than a 30% increase if you back out the impact of the legacy programmatic product. We're sunsetting. These projections include some new agreements that will be coming online early in the year now.

Speaker 4: Now I'd like to give you an update on our restructuring work as we close out the year.

Now I'd like to give you an update on our restructuring work as we closed out the year.

Speaker 4: Back in January , we announced a major reorganization of the company aimed at aligning all of our assets and the people to best capture the opportunities in the media ecosystem. The reorganization is unfolding as we intended to transform our company and improve margins, fuel growth and leverage the strength of our position in serving our audiences and community.

Back in January we announced a major reorganization of the company aimed at aligning all of our assets and the people to the best capture the opportunities in the media ecosystem. The reorganization is unfolding as we intended to transform our company and improve margin fuel growth and leverage the strength of our position in serving now.

Our audiences and communities.

Speaker 4: As Jason said, we are expecting to realize more than $40 million in savings through the REAGARG, with about 80% of that coming from eliminating positions and the rest from external spending, such as vendor contracts.

As Jason said, we are expecting to realize more than $40 million in savings through the read arc with about 80% of that coming from eliminating positions and the rest from external spending such as vendor contracts.

Speaker 4: But as you know, a company can't cut its way to growth. And the most important part of our work is what we're doing to reposition ourselves to thrive in the changing media landscape. Our approach to the reorganization.

But as you know a company can't cut its way to growth and the most important part of our work is what we're doing to reposition ourselves to thrive in the changing media landscape our.

Our approach to the reorganization had been fourfold.

Speaker 4: First, we have combined many corporate management roles that were separately housed in local media and scripts network divisions. So we now have leaders who are responsible for their areas across the enterprise. For example, we hired a chief revenue officer from NBC Universal who oversees both local station and network sales and is charged with thinking holistically about the company's revenue growth.

First we have combined many corporate management roles that were separately house and local media and Scripps networks Division. So we now have leaders who are responsible for their areas across the enterprise. For example, we hired a chief revenue officer from NBC, Universal who oversees both local station and network sales and it's <unk>.

So we're thinking holistically about the company's revenue growth.

Speaker 4: His work already is leading to benefits ranging from better use of sales technology to more effective sales messaging and execution to the consolidation of vendor contracts. Second, as our leaders have taken on these broader roles, they have centralized teams in our local stations including human resources, finance, and marketing in a way that is appropriate for a company of our size and in line with our local broadcast peers.

His work already is leading to benefits ranging from better use of sales technology to more effective sales messaging and execution to the consolidation of vendor contracts.

And as our leaders have taken on these broader roles. They have centralized teams and our local stations, including human resources finance and marketing in a way that is appropriate for a company of our size and in line with our local broadcast peers.

Third our local media station newsrooms are rethinking, how we adapt to what our audiences and communities want from their local news we've undertaken extensive audience research over the last six years, including focuses on black Hispanic and rural households. These learnings have informed our approach to local coverage and the way we are.

Speaker 4: Third, our local media station newsrooms are rethinking how we adapt to what our audiences and communities want from their local news. We've undertaken extensive audience research over the last six years, including focuses on black, Hispanic, and rural households. These learnings have informed our approach to local coverage and the way we will serve viewers and audiences in the future.

We'll serve viewers and audiences in the future.

Speaker 4: One key change is the redeployment of our anchor roles in some markets, so we can put more journalists in the field. Rather than broadcasting from a studio with a traditional anchor desk, more of our newscasts are filled with reporters telling stories from out in their cities and neighbors.

One key change is the redeployment of our anchor roles in some markets. So we can put more journalists in the field.

Rather than broadcasting from our studio with traditional anchored with a traditional anchor desk more of our newscasts are filled with reporters telling stories from out in their cities and neighborhoods.

We're also running scripts news on our local stations. This is three benefits. It puts Scripps news brand in front of large new audiences. It allows local stations to use the quality objected national content Scripps is produces.

Speaker 4: We're also running Scripps News on our local stations. This has three benefits. It puts Scripps News brand in front of large new audiences. It allows local stations to use the quality, objective, national content Scripps News produces. And it saves on programming costs.

And it saves on programming cost. We're now are in 63 hours a week of scripts news live on 48 local stations with advertising sold by the local teams and the ratings are steadily growing for example stations that you. The script. This morning Rush program. So our viewership bill by 12% from June to set.

Speaker 4: We're now airing 63 hours a week of Scripps News live on 48 local stations with advertising sold by the local teams. And the ratings are steadily growing. For example, stations that use Scripps News Morning Rush program saw viewership build by 12% from June to September , and Scripps News live programming is delivering sustained year-over-year ratings growth of 4%.

Timber and Scripps News live programming is delivering sustained year over year ratings growth of 4%.

Speaker 4: The fourth and very important part of the reorganization has been the emergence of script sports led by Brian Lawler. It has been crucial for Brian and his team as they build out our reputation as a sports media partner to have support from people who think about all of our efforts.

The fourth and very important part of the reorganization was has been the emergence of Scripps sports led by Brian Lawlor. It has been crucial for Brian and his team as they build out our reputation as a sports media partner to have support from people, who think about all of our assets from the market depth of our local stations to the national and Dermot.

Speaker 4: from the market depth of our local stations to the National and Demographic Reach of Ion and other networks.

Graphic reach of IATA and other networks as we're putting together local and national deals. We are creatively deploying assets from both local media and Scripps networks unencumbered by where they sit in the organization.

Speaker 4: As we're putting together local and national deals, we are creatively deploying assets from both local media and Scripps networks, unencumbered by where they sit in the organization.

Speaker 4: We will wrap up most of our corporate-level work this year and will realize our full savings after our local stations complete their transitions in the first half of next year. But the true value of our transformation will come as these changes take root. We are forming new and even deeper connections with our audiences and advertisers through news, sports, and other quality entertainment programming on every platform where Americans watch TV.

We will wrap up most of our corporate level work this year and we will realize our full savings after our local stations complete their transition in the first half of next year.

But the true value of our transformation will come as these changes take route we are forming new and even deeper connections with our audiences and advertisers through news sports and other quality entertainment programming on every platform, where Americans watch television the enterprise value, where we're creating will propel our growth and.

Speaker 4: The enterprise value we're creating will propel our growth and perpetuation.

<unk> I'd like to close by calling out the most recent awards of our impactful journalism as Adam said, we are very proud to win our first national New Demi at Scripps News. In addition to Scripps local stations were recognized with National Murrow Awards W. T V. Our enrichment one for an investigation into a string of sniper shootings.

Speaker 4: I'd like to close by calling out the most recent awards of our impactful journalism. As Adam said, we are very proud to win our first National News Emmy at Scripps News. In addition, two Scripps local stations were recognized with National Murrow Awards. WTVR in Richmond won for an investigation into a string of sniper shootings, and KTVQ in Billings won for coverage of the devastating flooding there in 2022.

And Katy <unk> in billings, one for coverage of the devastating flooding there in 2022.

And Phil Williams, Chief investigative reporter at W. TBS and Nashville was awarded Columbia University's John Chancellor Award for Excellence in Journalism. Phil is the first local TV news reporter to be honored with this award and now operator, we're ready for questions.

Speaker 4: And Phil Williams, Chief Investigative Reporter at WTVF in Nashville, was awarded Columbia University's John Chancellor Award for Excellence in Journalism. Phil is the first local TV news reporter to be honored with this award. And now, operator, we're ready for questions.

Yes.

Speaker 1: Ladies and gentlemen, if you wish to ask a question, please press one then zero on your telephone keypad. You may withdraw your question at any time by repeating the one zero command. If you're using a speaker phone, please pick up the handset before pressing the numbers. Once again, if you have a question, please press one then zero at 50.

Ladies and gentlemen, if you wish to ask a question. Please press one to zero on your telephone keypad you may withdraw your question at any time by repeating the ones. They will command if you're using a speakerphone. Please pick up the handset before pressing the numbers. Once again, if you have a question. Please press one zero at this time.

Speaker 1: First, we're going to the line for Dan Kernels. Benchmark, please go ahead.

And first we go onto the line for a dad kernels benchmark. Please go ahead.

Speaker 5: Great, thanks. Good morning. You guys talked all through the accolades, but Adam, no one brought up your own industry accolade, so kudos to you for being named BNC.

Great. Thanks. Good morning, you talked you guys talked all through the accolades, but Adam no one brought up your own industry accolades. So kudos to you for being named D&C.

Speaker 5: broadcaster of the year. Just a couple I think I really want to dive into the sports angle and to really appreciate the incremental data you've given us around local and I really want to spend some time maybe Adam just parsing out.

Broadcaster of the year.

Just a couple I think I really want to dive into the sports angle and it really appreciate the.

The incremental data you've given us around local and I really want to spend some time, maybe Adam just parsing out kind of the local versus national strategy.

Speaker 5: kind of the local versus the national strategy. Obviously, let's just start on the local side. A lot is really dependent clearly on what happens with some of the existing contracts and it sounds like early, maybe.

Obviously, a lot on let's just start on the local side a lot is really dependent clearly on what happens with some of the existing contract and it sounds like.

Early maybe.

Speaker 5: Next year, February timeframe, we might run out of extensions for diamonds, but just in general, sort of the opportunity that you're seeing out there, whether you have specific markets, you target pace, anything you can kind of give us and just how you're thinking about the local opportunity and then I'll follow up with kind of a national question after.

Next year February timeframe, we might run out of extensions for diamond, but just in general sort of the opportunity that youre seeing out there.

Whether you have specific markets you've targeted pace anything you can kind of give us on just how youre thinking about the local opportunity and then I'll follow up with kind of a national question after that.

Speaker 3: Thanks, Dan, and thanks for the kind words. Look, I think you should absolutely assume that we'll continue to execute this strategy where we see opportunities for our local brands to align with local sports.

Thanks, Dan and thanks for the kind words.

Look I think it should absolutely assume that will continue to execute this strategy, where we see opportunities for our local brands to align with local sports.

Speaker 6: You know, we're obviously dedicated to approaching each of the deals with discipline, and I would say we've developed a real reputation that's appreciated among the owners and the leagues for partnership and shared risk and shared reward that, frankly, really feels good to them, especially after the trauma that they're coming off of with the sort of chaotic implosion of the RSN business.

We're obviously dedicated to approaching each of the deals with discipline and.

I would say we've developed a real reputation that's appreciated among the owners and the leagues for partnership and shared risk and shared reward that frankly really feels good to them, especially after the trauma that theyre coming off of with the sort of chaotic implosion of the Rss business.

Speaker 6: There are definitely markets where we see significant opportunity, markets where we think we can do what we've done in Las Vegas. In other words, you know, flip an ION station to a local independent.

There are definitely markets, where we see significant opportunity markets, where we think we can do what we've done in Las Vegas in other words.

Flip a ion station to a local independent.

Speaker 6: without negatively impacting the ion reach because we moved the programming stream to different spectrum.

Without negatively impacting the ion reach because we moved the programming streamed to different spectrum, and then with sports as the anchor tenant of the programming of that independent station really disrupting that local marketplace and significantly taking local advertising share and increasing our take of local <unk>.

Speaker 6: and then with sports as the anchor tenant of the programming of that independent station, really disrupting that local marketplace and significantly taking local advertising share and increasing our take of local retrans in that market. And so that's why I referenced earlier from a local perspective with every new right deal that we sign, we would expect to see core revenue growth.

Hands in that market and so that's why I referenced earlier from a local perspective with every new rights deal that we signed we would expect to see core revenue growth.

Speaker 6: and the opportunity for continued expansion for revenue for distribution, even between contracts.

And the opportunity for continued expansion for for revenue for distribution even between contracts. So I think that's an important point.

Speaker 6: So I think that's an important thing to point out. Typically, you would only see us expand retrans revenue.

One thing to point out you know typically you would only see us expand retrans revenue based.

Speaker 6: based on step-ups or based on new contracts, and in this situation, you know, we have the opportunity to increase our retrans revenue every time we signed a new local sports deal.

Based on step ups or based on new contracts and in this situation. We have the opportunity to increase our retrans revenue every time, we signed a new local sports deal.

Speaker 6: And so the opportunity there to dramatically impact, I think, core revenue growth is sizable.

So the opportunity there to dramatically impact I think core revenue growth.

Is it sizable.

Speaker 6: On the national level, the revenue growth we're seeing is just as important, but given the exposure of a single national deal, which is essentially like one night over 15 weeks.

On the national level.

The revenue growth, we're seeing is just as important but given the exposure of a single national deal, which is essentially like one night over 15 weeks, it's obviously not going to show up as impactful to the overall revenue growth of the Scripps networks, but that said, we really think it's about the opportunity to leverage the national writers.

Speaker 6: it's obviously not going to show up as impactful to the overall revenue growth of the Scripps networks. But that said, we really think it's about the opportunity to leverage the national rights as a way to solidify linear viewing, grow, diversify the audience, and more broadly raise the rates of IOM.

As a way to solidify a linear viewing grow diversify the audience and more broadly raise the rates of Ireland right. So we talked about the fact that 30% audio growth the audience growth for the WNBA in my prepared remarks came from.

Speaker 6: So, we talked about the fact that 30% audience growth for the WNBA in my prepared remarks came from ION's rights.

<unk> rights for US. The season also represented good diversification and expansion opportunity. This season drew 2 million new viewers to ion <unk>.

Speaker 6: For us, the season also represented good diversification and expansion opportunity. The season drew in two million new viewers to ION.

Speaker 6: a significant expansion of the audience, and as I said in my remarks, 65% of the revenue we generated during that season was from new description advertisers. So we would expect to look again with discipline for additional rights opportunities on the national side as well, consistent with the brand we're building for ION. And we hope to have more to say about that in the near future.

Significant expansion of the audience and as I said in my remarks, 65% of the revenue we generated during that season was from new description advertisers. So we would expect to look again with discipline for additional rights opportunities on the national side as well consistent with the brand we're building for ion and we.

Hope to have more to say about that in the near future.

Speaker 5: Got it, that's super helpful. And then just on the CTV stuff, I mean, Lisa really appreciate the incremental color. Maybe you can just give us some more granularity on just how you plan on achieving the, let's call it 30% X Sunsetting growth next year and just what some of the drivers are there. I don't know if that's encompassing some of the aforementioned sports rights.

Got it that's Super helpful. And then just on the CTV stuff.

At least I really appreciate the incremental color maybe you can just give us some more granularity on just how you plan on achieving the let's call it 30% ex sunsetting.

<unk> next year and just.

Some of the drivers are there I don't know if thats encompassing some of the aforementioned sports rights expectations or if that's just simply.

Speaker 5: expectations or if that's just simply, you know, figuring out the right way to go to market with expanded products and better lineup that you guys have.

Hearing out the right way to go to market with expanded products and vendor lineup that you guys have.

Speaker 4: All of the above Dan, you just covered it. We're seeing both organic growth in our CTV revenue in 2024. We expect to see it. And we also, as I mentioned in my prepared remarks, had laid in a night foundation from an up front perspective in CTV, I think with growth of a 60% year over year in terms of what we laid in. We also are benefiting from

All of the above Dan.

You just covered it and we're seeing those organic growth in our CTV revenue and 2024, we expect to see it and.

And we also as I mentioned in my prepared remarks had.

And a nice foundation from an upfront perspective in CTV I think with growth of it.

60% year over year in terms of what we laid in we also are benefiting from.

Speaker 4: continued launching of new fast channels. I think we mentioned maybe even last quarter that we were launching two new fast networks last more, which now completes our ability to have each of our networks.

Continued launching of new Fabs channels, I think we mentioned maybe even last quarter that we were launching two new fast networks last more which now completes our ability to have each of our networks with the exception of defy carried on fast <unk> is now available on fast.

Speaker 4: with the exception of defy carried on fast. So left more is now available on fast. And we...

And we are.

Speaker 4: took our IP that we own related to court TV and created a whole new fast channel called court TV legendary trials. And we're really utilizing that asset of IP that we've owned for quite some time and creating value there. So we've launched those two here in the last...

Took our IP that we own related to court TV and created a whole new SaaS channel called and court TV legendary trials, and we're really utilizing that asset of IP that we've owned for quite some time and creating value. There. So we've launched those two here in the last quarter.

Speaker 4: We'll continue to see some launches over this quarter and into next year. And then we are also launching on some large platforms.

We will continue to see some launches.

Over this quarter and into next year and then we are also launching on.

Some large platforms.

Speaker 4: And that guide includes in the early part of 2024.

And that guide includes in the.

The early part of 2024.

Got it really.

Speaker 5: Got it. Really appreciate that. Just one housekeeping, Jason, this may be better offline, but I think you have another Synergy tranche next year from the Spectrum side of the ION acquisition. Is there any way to size that?

I really appreciate that and just one housekeeping, Jason Thats may be better off line, but I think you have another synergy tranche next year from the spectrum side of the ion acquisitions is there any way to size that.

Speaker 3: Yeah, when we initially announced the ION acquisition, we talked about sort of that cadence and it was in the $15 to $20 million range incrementally next year tied to really one big contract that's coming.

Yeah, we had when we initially announced the <unk> acquisition, we talked about where that cadence and it was in the $15 million to $20 million range incrementally next year tied to really one big contract that's coming up.

Speaker 5: Perfect. Alright, thanks very much and a nice result in the court of guess.

Perfect Alright, thanks, very much and a nice result in the quarter guys.

Thanks, Dan.

Speaker 1: Thank you. And next, we go on to the line for Stephen Cahal, Wells Fargo. Please go ahead.

Thank you and next we go onto the line for Steven Koh Hall Wells Fargo. Please go ahead.

Yes. Thank you so Lisa.

Speaker 7: Yeah, thank you. So, Lisa, I was wondering if you could talk a little bit more about just the Q4 guide for networks. It's a little bit worse than what you did in Q3. Q3 came in a little better than what you'd expected. So, just trying to understand if the market has gotten worse.

I was wondering if you could talk a little bit more about just the Q4 guide for networks, it's a little bit worse than what you did in Q3 Q3 came in a little better than what you would expected. So just trying to understand if the market has gotten worse.

Speaker 7: You know, you're trying to be a little bit conservative. I know you talked a bit about CTV as well. So just any more color you can provide there and and then more broadly as more sports come on to the local side.

Try and give you a little bit conservative I know you talked a bit about CTV as well. So just any more color you can provide there and and then more broadly as more sports come on to the local side.

Speaker 7: How do you see the opportunity for moving more of ION's delivery to like across AdSales platform, where you're using both local and ION together in the sales process to maybe deliver your cell from direct response a little bit over time?

How do you see the opportunity for moving.

More of ions delivery to like a cross AD sales platform.

They're using both local and ion together in the sales process to maybe Deleveraged yourself from direct response, a little bit over time, and then Adam. So I know you. All are very excited about tableau will you be sending that to sell side analysts for trial and then more seriously wondering what kind of marketing dollars.

Speaker 7: And then Adam, so I know you all are very excited about Tableau. Will you be sending that to cell site analysts for trial? And then more seriously wondering what kind of marketing dollars you might be looking to put into that to get shelf space or promoted in some of the key retail channers over time because it seems like free TV is compelling, but it's also pretty misunderstood or unknown by a lot of the population. Thank you.

Might be looking to put into that to get shelf space or promoted and some of the key retail channels over time, because it seems like free TV is compelling, but it's also pretty misunderstood or unknown by a lot of the population. Thank you.

Yes, Stephen and I'll start and then turn it over to Adam So and as you know the fourth quarter is the start up of our new upfront season, and as I mentioned in my prepared remarks really industry wide and the dollars that were written in the upfront was down I think across the board about 10% if not more depending on sort of the networks.

Speaker 4: Stephen, I'll start and turn it over to Adam. So, as you know, the fourth quarter is the start of our new up-front season, and as I mentioned in my prepared remarks, really industry-wide, the dollars that were written in the up-fronts was down, I think across the board, about 10 percent, if not more, depending on, you know, sort of the networks. And I mentioned, you know, at least a bright spot for us was writing.

And I mentioned at.

At least a bright spot for us was writing.

Speaker 4: more CTV dollars for the upfront starting in fourth quarter and next year, and also some of the

More CTV dollars for the upfront next starting in fourth quarter and next year and also.

Some of the.

Speaker 4: the real bright spot which was balanced. So we're basically starting with a lower volume because of the upfront reset in third quarter. However, we are...

A real bright spot which was balanced.

We're basically starting with a lower volume.

Because of the upfront reset in third quarter. However, we are.

Speaker 4: Continuing to see, we've seen it in second quarter and third quarter, it's got a revenue.

<unk> seen we've seen it in second quarter and third quarter scatter rabbit revenue.

Speaker 4: really holding its own. We are also seeing and expecting in fourth quarter for our scatter pricing to remain pretty strong in terms of CPMs compared to what we wrote in the up front. For instance, in third quarter we saw about a 55% increase over our up front dollars in terms of CPMs that were in the scatter marketplace.

Really holding itself, we are also seeing and expecting in third fourth quarter.

For our scatter pricing to remain.

Pretty strong in terms of CPM as compared to the what we wrote in the upfront.

For instance.

In third quarter, we saw about a 55% increase over our upfront dollar.

In terms of CPM that we're in the scatter.

Marketplace.

Speaker 4: The part of the guide also includes, I would say, the typically in fourth quarter you see high dollar

That's part of the guide also includes I would say the typically in fourth quarter you see high dollar.

Speaker 4: Advertising on the DR side, because of Medicare and those sorts of things, which has really, in many ways, is a little bit softer in fourth quarter, so that's flowing through our guide as well. I think the bright spot continues to be CTV. We continue to see that growth, not just ending Q4 of this year, but as I mentioned in my comments to Dan, into 2024.

Advertising on the Dr side, because of Medicare and those sorts of things which has really.

And in many ways, it's a little bit softer in fourth quarter. So that's flowing through our guidance well I think the bright spot continues to be CTV.

We continue to see that growth not just.

And in Q4 of this year, but as I mentioned in my comments to Dan into 2024.

Speaker 4: As for your next question, selling ion...

And as far as your next question selling ion.

Local with local that is absolutely something that's in our.

Speaker 4: with local, that is absolutely something that's in our.

Speaker 4: you know, not only something that we did this year as a result of a couple of big advertisers wanting both, I think, the reach that ION provides across the country, you know, reaching 97 percent of the country, and the depth of the markets that we have in local. And I think that's a really unique.

<unk>.

Not only something that we did this year as a result of a couple of big advertisers want in both I think the reach that ion provides across the country, reaching 97% of the country and the depth of the markets that we have in local and I think that's a really unique and go to market strategy that we are really working with our new <unk>.

Speaker 4: and go-to-market strategy that we are really working with our new Chief Revenue Officer, working to put in place for 2024 and beyond, because we see that as a huge opportunity for us.

Chief revenue officer.

Working to put in place for 2024 and beyond because we see that as a huge opportunity for us.

Speaker 4: that maybe others in the marketplace aren't able to quite pull off.

That maybe others in the marketplace aren't able to quite pull up.

Speaker 6: Dan, thanks for the question on Tableau. In the fourth quarter, we'll continue to leverage our own inventory across our local stations, national networks, digital media, alongside targeted paid media on linear TV, connected TV, social and digital platforms, and some work we're doing with influencers to drive sales of...

Dan.

Thanks for the question on tableau in the fourth quarter, we will continue to leverage our own inventory across our local stations national networks digital media.

Alongside targeted paid media on linear TV connected TV, social and digital platforms.

And some work we're doing with Influencers to drive sales of <unk>.

<unk>.

Speaker 6: of Tableau. The balance of the loss in the other segment is this work, you know, we've essentially transitioned from the spend we had dedicated to, broadly speaking, the growth of the over-the-air marketplace.

Of tableau the balance of the loss in the other segment is this work we've essentially transitioned from the spend we had dedicated to broadly speaking the growth of the over the air marketplace to this to the spend that we are.

Speaker 6: to the spend that we are considering consistent with growing the over-the-air marketplace, except now through retail sales and through sales of Tableau.

Considering consistent with growing the over the air marketplace, except now through <unk>.

Retail sales and through sales of tableau.

Speaker 6: So, you know, this is really consistent with what we've talked about before. We expect to continue to track carefully the RPU of Tableau. We're tracking the CAC or the sort of the average customer acquisition cost.

So this is really consistent with what we've talked about before.

We expect to continue.

To track carefully the <unk> of tableau, we're tracking the CAC or the sort of the average customer acquisition costs.

Speaker 6: and want to manage it effectively so that we're, you know, ensuring that we're, you know, doing activities here that are adding to the value of the company. And I expect to be able to share some of that information on future calls.

And want to manage it effectively so that we are in.

Ensuring that we're doing.

Doing activities here that are.

Adding to the value of the company and I expect to be able to share some of that information on future calls you look tableau is is not only consistent with our focus on growth of the over the air marketplace. It also is consistent with growth that we expect in the connected TV marketplace and I would say.

Speaker 6: You look, Tableau is not only consistent with our focus on growth of the over-the-air marketplace. It also is consistent with growth that we expect in the connected TV marketplace. And I would say, you know, for people who don't quite understand how it works, definitely visit TableauTV.com. And I'm happy to provide cell-citer with the full package. and 10-up plus

For people, who don't quite understand how it works definitely visit tableau TV dot com and I'm happy to provide sell siders with.

With the full package antenna plus.

Speaker 6: Plus Tableau if you can't afford the $99.

Plus tableau, if you can't afford the $99.

Speaker 1: Thank you and next we're going to the line for Nick Daugler from Steven's. Please go.

Thank you and next we go into the line four Nic Ziegler from Stephens. Please go ahead.

Speaker 7: Hey guys, I got a few here. First, you're just a high level one. You kind of touched on it in the call, but just wanted to see if you could expand on the commentary.

Hey, guys I got a few here first just a high level one you kind of touched on it in the call, but just wanted to see if you could expand on the commentary.

Speaker 7: regarding your thoughts on Disney Plus streaming service accessibility via the charter subscription just specifically, you know, do you expect and do you think that we're entering a time where

Regarding your thoughts on Disney plus streaming service accessibility via the charter subscription just specifically do you expect and do you think that we're entering a time, where mvpds and streaming services are going to collectively pivot their model such.

Speaker 7: MVPDs and streaming services are going to collectively pivot their model such that it's accessible via a distributor, the streaming services that is, and would this be a potential catalyst for stabilization across MVPDs in what seems to be in the face of what is accelerating churn, I guess, across distributors in this last quarter?

Such that it's accessible via a distributor the streaming services that is and would this be a potential catalyst for stabilization.

Cross Mvpds.

What seems to be.

And in the face of what is accelerating churn I guess across distributors in this last quarter.

Yes, Nick I mean, I think you you're exactly right ultimately first of all the price of all of the streaming services alone and Ala Carte has gone up so much that a is that we've essentially.

Speaker 6: Yeah, Nick, I mean, I think you're exactly right. Ultimately, first of all, the price of all of the streaming services alone and a la carte has gone up so much that we've essentially built a new, more expensive bundle. And so the pay TV ecosystem will absolutely benefit from bundling in SVOD services with the pay TV subscription.

<unk> built a new more expensive bundle and so the pay TV ecosystem will absolutely benefit from bundling in <unk> services with the pay TV subscription. So we think that the resolution of the charter Disney Blackout validates.

Speaker 6: So we think that the resolution of the charter Disney blackout validates the future of the retrans ecosystem, right? So their agreement showed us, first of all, that broadcast station content was still the most watched and most valuable content for distributors.

The future of the Retrans ecosystem right. So Theyre agreement showed us first of all that broadcast station content was still the most watched and most valuable content for distributors and the power of the linear cable platform was obviously clearly visible in Disney's willingness to bundle in Disney plus which we believe will slow.

Speaker 3: and the power of the linear cable platform was obviously clearly visible in Disney's willingness to bundle in Disney Plus.

Speaker 6: which we believe will slow cord cutting and provide that stabilization you referenced. One thing I also want to add in, you know, the fact that Charter was able to successfully drop Disney's lower viewed cable nets, freeze up ad dollars, freeze up, sorry, freeze up dollars in general to be redirected to the more valuable programming. Like we've for a long time been calling for a rationalization of the cable lineup and we think Charter came out with a clear and compelling case.

Cutting and provide that stabilization you referenced one thing I also want to add in.

The fact that charter was able to successfully dropped Disney's lower view viewed cable nets frees up AD dollars, sorry frees up dollars in general to be redirected to the more valuable programming like we've for a long time been calling for a rationalization of the cable lineup and we think charter came out with a clear and compelling case.

Speaker 6: for value and bundling it together is gonna make the pay TV ecosystem better for the consumer and will hold it together benefiting broadcasters. So given the results of the negotiation, I think broadcasters benefit.

For value and and bundling it together is going to make the pay TV ecosystem better for the consumer and will hold it together benefiting broadcasters. So given the results of the negotiation.

Thank.

I think broadcasters benefit.

Very helpful and then.

Speaker 7: Very helpful. And then just a question on the network side, just expanding on the previous one. With regards to the upfront weakness that you talked about, definitely hearing that across the board. But I'm wondering if this is just a reflection of advertisers looking for more flexibility. And effectively, they're unwilling to commit to that upfront as they have been in years past.

Just a question on the network side, just expanding on on the previous one.

Just regard to with regards to the upfront weakness that you talked about definitely hearing that across the board, but I'm wondering if this is just a reflection of advertisers looking for more flexibility and effectively they're unwilling to commit to that upfront as they had been in years past.

Speaker 7: And therefore you have less visibility, which is leading to your guide. And so my question is, given that, are you guiding me because of the less visibility that you have there? And then if the scatter market demand materializes, that would be the catalyst.

And therefore, you have less visibility which is.

Leading to your guide.

And so my question is you know given that are you guiding because of the less visibility that you have there and then if the scatter market demand materializes that would be the catalyst to fill it and then.

Speaker 7: fill it and then potentially generate upside versus what you're guiding for that line item.

Essentially generate upside versus.

What you're guiding for that line item and then just.

Speaker 7: And then just thinking about 2024 and how we should think about networks for 2024, what would you think on modeling out the potential continuation of this trend that you're guiding right now? Just thoughts on how we should think about modeling out 2024, given how you're thinking about fourth quarter.

Thinking about 2024, and how we should think about networks for 2024.

What would you what would you think on.

Modeling out the potential continuation of this trend that you are guiding right now just just thoughts on.

How we should think about.

Modeling out 2024.

How youre thinking about fourth quarter. Thanks.

Speaker 4: Thanks. Yeah. I think you're absolutely right. The less visibility phenomenon has really...

I think youre, absolutely right the less visibility phenomenon.

Really.

Speaker 4: Probably for the last several quarters been an issue and probably led to a little bit more conservatism, certainly in our guide for Q2 and Q3. I would say that certainly that lack of visibility continues their writing dollars later and later. And certainly the up front, the weaker up front industry wide weaker up front.

Probably for the last several quarters been an issue and probably lead to a little bit more conservatism certainly in our guide for Q2 and Q3.

I would say that that certainly that lack of visibility continues they are writing dollars later and later and certainly the upfront.

The weaker upfront industry wide of weaker upfront.

Speaker 4: does in some ways give you an opportunity to write more in scatter. As I said, we see pretty big premiums from a CPM perspective in scatter versus our upfront dollars that are committed.

And does in some ways.

Give you an opportunity to write more and scatter as I said, we see pretty big premiums from a CPM perspective in scatter versus our upfront dollars that are committed.

Speaker 4: And so, you know, if advertisers want that flexibility, they're gonna pay for that flexibility with higher rates from a scatter perspective, which we're happy to do.

And so if advertisers want that flexibility theyre going to pay for that flexibility with higher rates from a scatter perspective, which where we're happy we're happy to do them.

So I think with the the guide are our guide being down.

Speaker 4: So I think with the the guide our guide being down, you know, in the 10% range, you know, if you back out, you know, what we've talked about in terms of our, the sun setting of our

In the.

10% range, if you back out.

What we've talked about in terms of our the sunsetting of our.

Speaker 4: lower margin CTV product, we would be closer to the 8% range. So I think we're watching the marketplace carefully.

The lower margin CTV product, we would be closer to.

The 8% range. So I think we were watching the marketplace carefully we're being.

Speaker 3: you know, being very diligent in writing the highest CPM that we can, whether that's in scatter or DR, if certain categories get hot. And, Nick, I think in regards to your 2024 question, it's Jason, you know, I think because of that uncertainty that Lisa referenced, you know, it's really too early for us to really comment on 2024. Certainly, when we get to the February call, I think we'll be in a much better position to give you some insight into how we see the year shaping out.

Being very diligent in writing the highest CPM that we can whether that's in scatter or D. R.

Is it certain categories get hot and Nick I think in regards to your 2024 question is Jason I think because of that uncertainty that Lisa referenced it's really too early for us to really comment on 2024, certainly when we get to the February call I think we'll be in a much better position to give you some insight into how we see the year shaping out.

Great. Thanks, so much much appreciate it.

Speaker 1: Thank you. And next we go on to the line for Michael Kaczynski.

Thank you and next we go onto the line four Michael Kaplinsky Noble capital markets. Please go ahead. Thank.

Speaker 3: Thank you, and thank you for taking the questions. Nice quarter. Adam, thanks for providing more color on your sports rights strategy. I think it's amazing that a few that you already have so far is having such a meaningful impact on the total company revenues. A question on that, if you can provide, what are your margin assumptions as you interview sports rights arrangement?

Thank you and thank you for taking the questions nice quarter, Adam Adam Thanks for providing more color on your sports right strategy I think it's amazing that it.

A few that you already have so far is having such a meaningful impact on the total company revenues.

And on that if you can provide what are your margin assumptions as you enter these sports rights arrangements are they different from the local strategy versus your national platforms, and I kind of think that this would be helpful for investors to understand that because many broadcasters have historically viewed sports rights.

Speaker 3: Are they different from the local strategy versus your national platforms? And I kind of think that this would be helpful for investors to understand that because many broadcasters have historically viewed sports rights, in some instances, as a lost leader to drive advertising and ratings. And I think it would be helpful just to kind of lay out your strategy for getting into sports rights.

In some instances as a loss leader to drive the advertising and ratings and I and I think it would be helpful. Just to kind of lay out your strategy for getting into sports rights.

Speaker 3: Hey Mike, it's Jason, I'll start in an adipment can add on. You know, I would say when we look at the sports rights and opportunities, you know, we're not giving any specifics on individual deal margins. What I can tell you for is that model these out, we model them out to be, you know, profit positive year one and to create incremental value in cash flow for the company. You know, there is a different, you know, calculation that goes into a local year versus a national year because the local deal we're essentially starting from scratch on top versus on the national side, we're replacing something that already makes, you know, makes good money on, on, on Ion. And so the, the math works a little bit different. You have a higher hurdle rate. You need to clear on the national side, but all the deals that we've modeled out thus far, we've modeled out to be, you know, profit positive year one.

Hey, Mike, It's Jason I'll start and Adam can add on I would say when we look at the sports rights opportunities, we're not giving any specifics on individual deal margins. What I can tell you for is that when we model. These out we model them out to be.

Profit positive year, wining and to create incremental value and cash flow for the company.

There is a different.

Calculation that goes into our local here versus the national deal because the local deal were essentially starting from scratch and adding this on top versus on the national side, we're replacing something that already makes it makes good money overall on an ion and so the math works a little different you have a higher hurdle rate you need to clear on the national side, but all the deals that we.

We've modeled out thus far we've modeled out to be profit positive Euro yes, Mike Let me just be really clear.

Speaker 6: Yeah, Mike, let me just be really clear. With our strategy, sports is not...

With our strategy sports is not a loss leader.

We don't think Theres, a reason for sports to be a loss leader at this time, especially for four.

Speaker 6: We don't think there's a reason for sports to be a lost leader at this time, especially for a platform like ours with such a significant reach. In this fragmented marketplace, we think that the owners have recognized the value of the reach. And we think that the leagues are seeking partners that can provide that kind of...

For a platform like ours with such significant reach in this fragmented marketplace. We think that the owners have recognized the value of the reach and we think that the leagues are seeking partners that can provide that kind of reach so in no scenario would we do a deal in which we would say that sport.

Speaker 6: So in no scenario would we do a deal in which we would say that sports over the life of a contract is a lost leader for us. These deals have to stand on their own.

Over the life of a contract as a loss leader for us.

These deals have to stand on their own.

Speaker 3: And thanks for the color. I think it's important that that's stressed out there. I appreciate that. That's all I have. Thank you.

And thanks for the color I think it's important that that.

That's stressed out there I appreciate that that's all I have thank you.

Thanks, Mike.

Speaker 8: Thank you and I'll ask questions to go to the line for Craig Hoover. Hoover research partners, please go ahead. Great, thank you. Good morning. I thought it was interesting. You guys obviously talked about a 4% list.

Thank you and our last question will go to the line for Craig Huber Huber Research partners. Please go ahead.

Great. Thank you good morning.

I thought it was interesting you guys all just totally a 4% lift.

To core advertising for your TV stations in the fourth quarter I just want make sure.

Speaker 8: You're pretty happy with the profitability that you're going to get off those two NHL deals you have here. It's all incremental. And I'm bringing that up because you're talking about costs.

You are pretty happy with the profitability that you're going to get after those two and H L.

Deals you have here, it's all incremental and I'm, bringing that up because you're talking about your costs in.

Speaker 8: Fourth Corps of a TV up mid single digits. So maybe Jason maybe just walk me through why is cost and TV station?

In the fourth quarter for TV.

Mid single digits, so maybe.

Jason maybe just walk me through why is cost and TV stations can be up mid single digits in the fourth quarter year over year. Yeah. So there are there are a handful of things go in there and had two of them I referenced in the script one being some of the cost for for some of our frontline reporters and some compensation adjustments. We did we did there.

Speaker 3: Yeah, so there are a handful of things going there. And two of my reference in the script, one being some of the costs for some of our frontline reporters and some compensation adjustments we did there earlier in the year and seeing that impact year to year. We also do have the cost starting to roll in for sports. What I would say is my comment earlier, where we model these profit positive for the season, season one, there is some timing throughout the year. So when you're launching new sports franchise, there's a lot of marketing initially to help viewers in that audience find where the product is.

They're earlier in the year and seeing that impact year over year. We also do have.

The cost starting to rollout for sports what I would say is my comment earlier, we where we we model. These profit positive for the season season. One there is some timing throughout the year. So when you're launching new sports franchise. There's a lot of marketing initially to help viewers in that audience find where the product is.

Speaker 3: you know, and so customer acquisition early on. So, we are not looking at sports as a, what is it happening in Q4? We're looking across season one. So, from Q4 through Q1 of next year, these are profitable enterprise.

And so customer acquisition early on so.

We are not looking at sports as a what is it happening in Q4 were looking across season. One so from Q4 through Q1 of next year these either profitable enterprise.

Speaker 3: And I would also reference in the case of the coyote specifically we announced that deal eight days before we launched it And so from a sales perspective, that's one where the revenue is going to be more back unloaded as we as we work to You know to go ahead and really get out in the local marketplace in Arizona and sell that franchise So there is some timing there And there are just some other costs to in the fourth quarter outside of sports

And I would also reference in the case of the Coyote, specifically, we announced that deal eight days before we launched it and so from a sales perspective, that's one where the revenue is going to be more backend loaded as we as we work to <unk>.

To go ahead, and really get out in the local marketplace in Arizona and sell that franchise. So there is some timing there.

And there are just some other cost too in the fourth quarter outside of sports and <unk>.

Speaker 8: and the or item I mentioned that just are up a bit in Q4 as well. So if not just one thing, it's not just sports, it's a variety of things. And so I wouldn't take that, I wouldn't take what you're seeing Q4s and trends. Okay, I mean, obviously, obviously,

And the.

Our the quarter item I mentioned that just are up a bit in Q4 as well. So it's not just one thing it's not just sports it's a variety of things and so I wouldn't take that as I wouldn't take what you're seeing in Q4 as a trend.

Okay.

Do you see the extra 4% lift.

On the core advertising side as you call. It another $6 million to $7 million of added revenue, you're seeing costs, though up mid single digits take the midpoint of that 5%.

Speaker 8: $6 to $7 million of added revenue. You're saying costs, though, up mid-single digits take the midpoint of that 5%.

40 million extra cost, you're saying, there's a lot more than just sports cost is bumping that up even though the year ago quarter did have some political related costs.

Speaker 8: sports costs, it's bumping that up, even though the year ago, Horder did have some political

Speaker 3: right that there really would be i mean political is high margin almost no cost and so there would never really been any material political cost in four quarter last year so it's it's it's other items

Assuming thats correct, there really would be political is high margin almost no cost and so there wouldn't have really been any material political costs in the fourth quarter last year. So it's those other items I mentioned.

Speaker 8: Appreciate that. Adam, on the ATSC 3.0 side of things, can you maybe just update us on what percent of the households in your markets have that signal, and what do you think it will be at the end of, say, next year, please?

Okay I appreciate that.

Adam on the a T. S. C 3.0 side of things can maybe just update us on what percent of the households.

In your markets.

The signal and what do you think it will be at the end of next year. Please.

What percent of the markets, you're more sort of your markets the households.

Speaker 8: What percent of the markets? Of your markets, sorry, of your markets, the households, what percent of ATSC 3.0 signal being broadcast to them? And where do you think that percentage will be end of next?

What percent of <unk> 3.0 signal be broadcast to them and where do you think that signage will be end of next year Whats your goal there. Please.

Speaker 6: Craig, I can get that to you later this afternoon. It's not necessarily a script's goal. It's ultimately done, market by market, with the rest of the industry, because the station doesn't flip to 3.0 on its own. We can get you an up-to-date version of what the industry's transition looks like thus far, and about where we think it's going by next year.

I can get that to you later this afternoon.

Not necessarily our scripts goal, it's all ultimately done market by market with the rest of the industry because of the station doesn't flip to three <unk> on its own but we can get you an up to date version of what the industry's transition looks like thus far and about where we think it's going by next year.

Speaker 4: Okay, and an end pick question. How much was auto up in the quarter here that we just finished? I know you said 10% up, I think, for October , but that's similar in the last quarter. Yeah, actually auto was up 14% in Q3, which was really strong. And as I said, we're seeing some continued increases in certainly in October , so we expect.

Okay and then it did pick question how much was auto up in the quarter here that we just finished I know you said, 10% up I think for October but yes, it's similar.

Okay.

Actually auto was up 14% in Q3, which was really strong and as I said, we're seeing some continued.

Increases in certainly in October so, we expect really to end the year and upward territory.

Speaker 3: really to end the year in upward territory. It was 18% of our core and the core, probably the highest percent it's been in quite.

It was 18% of our core in the quarter, which is probably the highest percent it's been in quite some time.

Speaker 8: I might guess my last question on TV stations in the third quarter. Can you just break out National?

I guess my last question on TV stations in the third quarter can you just break out national co.

Speaker 8: core advertising trend there versus the local. I mean, how much worse was national?

Core advertising trend there versus the local I mean, how much worse was national.

<unk>.

Yep.

Speaker 3: The local national breakdown and key I would say yeah, I would say in three cues They there was not a material difference between

The local national breakdown in Q.

Sure Yeah, I would say in <unk>. They there was not a material difference between the year over year change in local and national.

Speaker 3: It's certainly their had been earlier in a year, but in three Q, I would say they will roughly align with each other in terms of the year.

It's certainly there had been earlier in the year, but in <unk> I would say they were roughly in line with each other in terms of the year over year decline.

Speaker 8: Okay, great. Last question, please. Retrans... I do have one more.

Okay great.

Question. Please retrans I do have a more retrans subs.

Speaker 8: and Santa recent quarters down the single digits year over year. What was it in the third quarter, please?

<unk> been seeing in recent quarters down mid single digits year over year was it was in the third quarter. Please.

Speaker 3: It continues to be down in that mid-single-digit range on a trailing 12-month...

It continues to be down in that mid single digit range on a trailing 12 month basis.

Is it.

Speaker 8: Is it the high end, is it changing much variability there? That's obviously been a concern of investors.

Due to the high end is I mean is it is it changing much as much variability there. That's obviously been a concern of investors I would say I do not see we did not see a material change in it from what we communicated last quarter this quarter.

Speaker 8: I would say we did not see a material change in it from what we communicated last quarter to this quarter. Great. Thanks a lot.

Okay, great. Thanks, a lot.

Yes.

Yes.

Thank you and there are no more questions in queue you may continue.

Thank you very much John and thanks, everyone for joining us today.

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