Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| But we’ve benefited greatly from the minority certification being out there, and we’ve been certified for a long time |
| And we think we have some advantages there, as -- I mean, I think, we’re really the only sort of African-American owned organization that’s really focused on investing in this industry that I know of, on a significant level |
| And we like to pencil out our cash investments in the 20s and we feel good about that |
| Particularly, the Huston one in particular was really strong |
| I mean, we -- it’s a great business |
| Liggins I mean, we feel good about it |
| The casino investment, even though it didn’t -- it didn’t pay back for a while, we’re pretty confident that if we spent $560 million building it that it would return a $100 million of EBITDA, and we would get that kind of return, based on what we knew about the central Virginia market |
| But we like to have a competitive advantage and some skill set |
| Our digital business is actually moving along as planned and is surprising to the upside in Q4 |
| And so, we’ve got great relationships with all the operators except for we are not on DISH |
| So for the first six months consolidated net revenue was up 3.8% year-over-year |
| And ultimately, we think there’s an opportunity to buy the competitor and do really, really well |
| How do we get some advantages, some scale advantages, some programming content advantages in our TV business? The radio acquisitions that we’ve made were very synergistic because we’re consolidating in markets |
| Streaming revenue from our radio station inventory was up |
| Net revenue for our digital segment increased by 1.8% for the first half of the year, which includes $1 million of revenue from the Indianapolis acquisition |
| You guys are in a pretty nice position relative to them |
| Liggins I’m happy that it’s profitable, right? And yes, you’re right |
| When our stock got some significant lift from being a African-American focused and controlled company because of the whole sort of mean from -- there was a moment in time wherein our stocks, companies like ours were running |
| And you guys have definitely done about as good a job as anybody in the industry at that |
| So, I do think that there is absolutely value there |
| Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $172.8 million for the six months period ended June 30th, up 16.2% from approximately $148.7 million incurred for the comparable period in 2022 |
| Excluding political, net revenues increased by 1% on a same-station basis |
| And if we can get an opportunity where we think we can earn a 20% return pretty confidently, then, we’ll take a hard run at it |
| That’s great |
| And so, we generally like to look for businesses that are tangential to the assets that we have, meaning that the assets that we have, have the ability to make us be more successful or can help us enter those businesses or actually be successful in those businesses than we might otherwise be |
| But we are aligned with the debt holders in this instance because it’s really about being safe and preserving your viability |
| Operating expenses in the digital segment were up by $3 million, driven predominantly by variable expenses related to traffic acquisition and audience extension, which were up by $1.3 million, and also, ad production and marketing, which was up by $1.6 million |
| We took advantage of it |
| The discipline makes sense |
| I would say that our number one priority is -- it could be in a defensive posture from the standpoint of making sure we continue to delever |
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| The cable television business struggled in the first half of the year, due to ratings and churn and ADU, Q1 in particular |
| So, if we peel that asset off, it’s also going to degrade the cash flow in that market |
| Direct sales from our national New York office were down as advertisers pulled back somewhat on marketing budgets due to recession concerns and fewer advertisers committed to Black History Month and the Juneteenth efforts compared to a year ago |
| Cable TV advertising revenue was down 5.8% or $3.5 million, with an unfavorable rate volume impact of $2 million, and an additional $1.3 million of ADU deficiency |
| There’s ad revenue pressures and so -- digital is so tricky |
| Digital segment was down by $2.4 million and cable TV was down $13.8 million, due to the advertising revenue decrease, subscriber churn and some increased content amortization costs |
| For Q4, we’re currently pacing down 11.6% all in, down 21.2% same-station, and down 10.1% same-station, ex political, with national down 26%, local down 2.1% |
| For the six-month period ended June 2023, consolidated adjusted EBITDA was $67.8 million, down $21.7 million or down 24.3% from last year |
| Net revenue for the cable television segment was $102.1 million for the first half of the year, decrease of 6.8% |
| I think, I’ve read something in BuzzFeed’s last conference call when they were talking about their ad revenue being down significantly and why |
| According to Miller Kaplan and on a same-station basis, our local ad sales were down 4.6%, against a market that was down 2.7% |
| P25-54 Prime delivery was down 31% in Q1 and down 21% in Q2 |
| The radio spot markets were down 1.6% in Q1 and down 6.8% in Q2 |
| National ad sales were down 2.4% against the market that was down 7.7% |
| So, normalizing for those two items, net revenue was down 3.9% or down 3.2% excluding political advertising |
| And I think I remember the number one thing they pointed out was that the big platforms are prioritizing their own content or their own verticals over third party, and it’s reduced their ability to monetize their content |
| And we finished Q3 down 0.6% overall, down 14.4% on a same-station basis and down 12% on a same-station basis excluding political |
| And obviously the back half, as we said, is going to be softer, because of the lack of political |
| And one of the problems is, does it weaken our position in that market versus something that we might want to do that’s going to get us a bigger return? Not mentioning the market, but in one of them it would make it weak -- make us weaker against the competitor there |
| So, that was going to put pressure on the returns |
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