MDP - Earnings call transcript Q3 2019 | Hawkeye Acquisition, Inc.

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Operator

Good morning. My name is Jack, and I will be your conference operator today. At this time, I would like to welcome everyone to the Meredith Corp. Fiscal 2019 Third Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. there question-and-answer remarks, speakers' the will session. be After Instructions] Thank you. [Operator conference. you may Lovell, begin Mike your

Mike Lovell

Good everyone, results and include our morning, thanks, forward-looking morning Remarks forecasts. statements will this and actual may from for differ joining us.

of call of financial of news end discussing measures this and that is release impact items. been in section adjusted the on at our these to measures of Reconciliations this Investor a website. non-GAAP earlier our and non-GAAP in issued we're the the of some reasons are basis our was SEC Some have described exclude earnings morning, available Relations special the are included expressed our release, of are that which filings. on Certain in

the later will our call on of this available website be an Finally, afternoon. archive

turn the Chief to Harty. Meredith over Tom officer, call President Executive Now and I'll

Thomas Harty

Mike, everyone. opportunity was Thank good morning. to you our hope the issued news see and very release that you've this had much, morning, earlier I

we've our last the Inc. plan laser-focused Time the year, acquisition. For integrate to been on

Media from National Group Patrick deliver progress the and our President, the who update far. will so our made hear from President. we've time, hear Media in Local performance we you'll continue same You'll outstanding - Jon to more Werther, from Group, McCreery, At

update deal Finally, assets. along noncore initiatives sell the scenes Joe there's Chief to XXXX done those work public fiscal Financial great been and will companies from Ceryanec combine a behind of with our X outlook. corporate Officer, our staff

part plan, synergies the have are year integration a last key that spent of and focused our on plan. We

we sources for though such said, timing cost we acquisition Group production have consumer initiatives integration those growth of million organic the platforms, our to more progressed, we to term. the video digital cut revenue our expect because This as of opportunities also as particularly and has deliver agent-sourced when way investing low-margin, work you activities. subscription your our some Inc. sustainable the can't to position Time new adjusting e-commerce Apple are more That robust to growth capture our work, acquisition, and We're We targeted will long Media of profitable savings. of over National from inherited we from and $XXX subscriptions News+ grow includes in savings

As moments. example have takes solicitation of that time in acquisitions, with those campaign, more when prior for happens in of we Werther profitable opportunity detail recent most margin we're the transitioning our few subscription will but renew, which the a one improvement as they to sources, process Jon

result, a a but with outlook our to performance revenue for EBITDA more few well. provide expect reducing as XXXX moments detail line in deliver will As bit. we in our we a estimates, fiscal Joe adjusted prior are

our highlight accomplishments there Before from he important to trends are does, quarter and performance. some third

February, advertising-related in In Total XXXX. are to During grew brands. quarter. experienced in we on we integrate results work down basis. National what the our Groups the total digits as we we both we cited to in a fiscal Inc. of in Time revenues to is mid-single quarter compared third comparable calendar improvement and the in This XX% significant XX%, up XXXX were we're these the in Today, Media our in call, revenues were and Group, for Media National calendar last XXXX. improvement trends early delivered our the seeing early have pleased advertising Local a

long-term While performance. are the at performance around we the it expected brands, with legacy Meredith's historical around to and advertising longer turn expected than in Time line initially took now we

were up Group, the nonpolitical total quarter, revenues XX%, fourth National we Media Local advertising into up better being performance Group Looking quarter. anticipate In our the advertising than mid-single third were in the the digits. Media

We're focused robust newsstand viewed XX%. Meredith been consumer by revenues growing on always strong National revenues. launch our a digital Apple service was but these with consumer-related affiliate company, about our This Group. total third company are in in the more to excited Media had grew an very quarter access publications performance Group, Meredith advertising-driven years, we've along subscription and particularly XXXX driven of marketing than retransmission magazines. Fiscal consent we as primarily News+, favorable a of recent XXX including has that business Media For and than Local XX renewal offers more agreements

strong one testament consumer-based premium content brands. the world, power of of News+ is companies of successful in Apple's the paid from to most As trusted launch Apple the a

including spend from platform. with lower savings, guaranteed benefits lower our are and Apple liberty based economic areas: consumers we payments; finally, not subscription specific the are Meredith expenses we on First, we overtime; benefit at flow X the there discuss royalties advertising time second, the cost While from magazine to minimum this anticipate agreement, the third, to acquisition opportunities innovative News+ expenses platform; production will of we on brands terms and on earn

amount We consecutive to cash raising in paid XX for straight them the shareholders by to raise the shareholder years have to on continue and $X.XX for now dividend annualized of we by an returned dividends regular basis. return, to Turning years. our February the increase X.X% XX

Importantly, return a XXXX, than annual for average since our launching doubled more total delivered our shareholder XX% strategy dividend shareholders. in we've our return and

successful growing history scale; a consumer based on meaningful that activities and are The with produce time. brands value my we thesis close operate, the is by a compelling highly cash continue driven formal millennials; and for and brands national women, with a revenue large high-margin of acquisitions; morning now national set both unrivaled group generating investment and our strong local track consistently to reach over we growing comments Corporation. Meredith brands, digital and of flow strong television new stations profitable and what businesses strong flows own markets; me to diverse of attractive an integrating cash shareholder in particularly with this American now business, Let believe record and fast-growing an of

Group National initiatives. acquisition including over a Werther Now I'll Jon for turn it of our to review our Media

Jonathan Werther

quarter was third XXXX operating Group profit Fiscal Tom. million. Media National $XX Thanks,

$XXX Excluding million These million. special adjusted and was operations. items, exclude XX% profit discontinued $XXX rose results grew operating to to million. $XX EBITDA Revenues

standards As you can we've upon advertising time, and and portfolio. initiatives X sales place the and morning, historic properties Time portfolio; we new key accomplish start, of second, Inc. we into key levels said To progress to and activities; we performance on we P&L and third, and maximize disciplines increased this across these went we way Meredith's acquiring marketing advertising strategies, resulting marketing our marketed executed to put resources new implemented we aggressively in to portfolio, see First, reorganized improve we the integrate the operating brands initiatives: print To budgets. sales that and made we the Inc. and Time in and the to access invested Meredith's strategic in acquired did. our the market this, new over would significant

year-over-year consistently print result, primarily quarter have a we comparable significantly Legacy Inc. Meredith Time the and delivered is quarter third brands. improved revenue advertising and with acquired in we been line brands As driven by was in our performance third improvement the performing performance the expect. fiscal

revenues which into many of look anticipate the As by advertising year-over-year. further acquired of driven in again print we some the to brands, we fourth be up improvement, quarter, look

out year-over-year the despite our would fiscal grew our digital portfolio; a portfolio. expanded advertising digital our to to and our channels, best pleased environment. features we that ad fastest-growing margins former of well say team and extended portfolio; development a consolidated challenging from quarter including advertising said our infrastructure across will yield XXXX, scaled content to has unified To management third digital products advertising products accomplish and video, marketing, and this, audience key position advertising management us system am practices efficiently comparable revenues social. Inc. acquired benefit extend premium raise the the to enable actions we I seamlessly to to Time us properties that premium ad digital native, shopper in entire begun products of roll Meredith's we across more programmatic levels. These the the and profit Next, and high and

to evaluate new strengthen digital acquisition digital opportunities we added we couponing and space capabilities in our continue Additionally, the further to activities.

We margins the and reminder, revenues these a approximately XXX per activities to digital as of engage National approximately Media whole. Group at million annually million month. generate visitors a As operate similar unique today $XXX

margin fourth anticipate the year-over-year we into further quarter, and improvement. revenue Looking

Fiscal Third, growing Cozi. our to third our include we quarter portfolio. consumer-related These revenues and generation XX%. products committed marketing, efforts, XXXX like affinity consumer-related paid high-margin rose brand brand affiliate and revenues licensing leveraging marketing initiatives, our lead subscriptions, expanded by magazine

Group connection quarter. brands revenues consumer-related and for interact National continue strong of nearly of total the with them to revenues who XX% consumers maintain in to the a Our daily, accounted third Media millions

Magnolia bundled SIMPLE Journal, strong response particularly are including our We Allrecipes. very those PEOPLE, rates subscription our offers, excited for and for at REAL

in million our our improved rates. XX,XXX example, in generated social generated the portfolio at mail auto-renewing For alone. an nearly direct across program recent December X investment media subscriptions subscriptions a significantly channel of most month response new And

newsstand delivered strong special in optimizing also growth sales publications portfolio. current by single-topic our interest launching We and new

identify Here, trends. leverage to proprietary insights we market predict and

consumers media million than and Anticipating to utility, XXX We at entertainment, audience the the helped $X.XX we above. entertainment all Meredith expect with become daily XX lifestyle SIP needs or brand-powered copies million to inspiration, industry. in largest with and sell year, almost of and providing food, has more priced this serve the enable them company

long the To Media in products a position the term variety our and activities. to consumer new of this, advertising is harness our across growth experiences wide over both are organic innovative brands. new technology accomplish create Group goal consumer Our we and investing in National for that

Let me handful. a highlight

recipes, and Suggested proprietary to that includes and to like shopper and our our products marketer delivery marketing with Fresh automatically advertising adjacent This recipes. authentically strategic partners recently launched or a Amazon combine integrate to platform. wine own pairings with artificial pairing intelligence stores to Instacart linked grocery data products proprietary campaign appear developing we're using First, nearby are within our first-party seamlessly content.

across smart to directly we're of or advertising enhance QR online codes portfolio simply our videos launching using smart print iOS codes millions their device, enable QR with handheld opportunities. on that camera By and the tens titles. of experience Android the consumer Second, content, readers connect of

unique our enables choices we're offerings media content portfolio insights and we're content-to-commerce from to predict enhancing investment first-party like retailers. deepen marketers engagement, categorization click-to-cart capabilities across or inform and unifying launch Third, data us food. our taxonomies This trends click-to-buy to both from shopable major and that our our richer Fourth, categories product provide key and video, with consumer drive in experiences decisions. native to content that

months. subscription-based last and the Just a past have developed over strategic product, direct-to-consumer we together month results with new several launched which in marketing client, been a we Early conceived collaboration of promising.

news TV women our top Instagram ad-supported announced and include presentation XX pursuing the plus called we've launched carpet advertising industry royal launch Reality will platforms premiere video lineup TV and week, for at SHAPE's last new OTT include new X reality will of which of coverage, Check. service the a expanded live even of These marketing enormous across red PeopleTV, on O&O show plan daily streaming Finally, series, programming slate XX a showcase of On and NewFront an shows to An greater tripled that our new Crushers, we additional new our the YouTube. the paths platforms series available for so including: incredible major IGTV show, far, causes. we all a goals Goal the event of

of weight to women XXXX, inspired world. It Lastly, SeeHer, to multitude women's have full of the content, Katie will launching of our improve partnership Advertisers an who with tied media with in a that partnership XXXth the SeeHer of These impacted initiative of programs of We're number anniversary XX-week August to suffrage. run a through include National Story, portrayal of the Couric by brand and our features the SeeHer-inspired portfolio. advertising. remarkable by women backed series proud marking be in the Association a

our News+ reach of Apple now these I'll that Tom turn President, our the Group of including and growth partnership performance, women, We're described Patrick to for review XX% to McCreery marketing Local women Media pursue earlier. Our Group all initiatives more the With over of with excited and National Media advertising about product to all Meredith XX% that X/X in lie opportunities authentically ahead, all it clients. an including of update. Latinas, millennials than positions uniquely

Patrick McCreery

for quarter EBITDA Fiscal million, million Thanks, our Adjusted million. Media to Group Jon, records profit good third everyone. was and XXXX third morning, grew quarter. $XX was revenues $XXX $XX operating fiscal all Local

records Group Local X-month the operating to for For of first adjusted X million, and fiscal period. million, the months, including advertising, EBITDA all profit $XXX was Media political revenues $XXX $XXX million, million $XXX grew

top total performance, by spot having advertising quarter driven our third broad-based was primarily grew which Super benefited strong XXXX revenues from due offset to fees prior fiscal we Consumer-related revenues from from particular at saw in media by increases stations, increases performance revenues as operators. with advertising in the satellite XX% Nonpolitical nearly grew X professionals increased XX growth $XX closely of category higher million services, affiliated From our and strength networks. Bowl. period. growth more CBS an partially and Looking categories, cable to to affiliated X%, were retransmission television in the X% standpoint, payments furnishings. from advertising These

subscribers to over-the-top remains XXXX The third the year prior subscribers. even across Our strong. TV quarter consumer our approximately markets compared of in by connection period, was in growth the fiscal number pay of driven

or X of still retail we've X XX X to stations stated in delivered medium effective during most our the past, ranking as local And strong number broadcast period, the television the driving sign-on in Additionally, February sign-off. stations is that either our markets rating traffic. with performance

our show connection from air local through brand all of company. to entertainment by XXXX in-house more. Friday led of our Studios, PEOPLE Our interviews, PEOPLE we've develop stories, on stations. in the features most The and and committed television the us Four launching exclusive production M will crime the that viewers, on with will beauty, to show to of evenings Monday the will strength produced highlight be The feature daily magazine, PEOPLE based television Meredith's along popular show news, fall brand, syndicated XX a including

over it Joe Officer, Financial turn Now Ceryanec. Chief to I'll

Joseph Ceryanec

completing the leverage allows better brands that our our of began under From all comprehensive program shortly consolidation for an asset savings. Patrick, scale and now this operations a update to and our service sales. quarter morning. cost and a not included process And employees one and of From Time in our This customer billings our businesses Thanks, an recall Tampa. on integration transitioned asset integration the payable wind First, included: third accounts system. payroll, start vendor. a legacy brand-related Time all fully I'll our brands an We've all the third-party with and we our media on of into to ownership has to fulfillment consolidated employee our Time standpoint, good All review single business. vendor. sale benefits now T&E, all accomplishments larger portfolio, announced finishing single Inc., down Meredith's divest standpoint, core with us for a to to

used Time So debt fiscal realized Illustrated far Viant. brand XX% Sports selling aggressively XXXX, Fortune and $XXX with on media the in we've we're proceeds and reduction. of million the sales proceeds for and stake we've our in of Currently, brands, those working the

XXXX. successful the March closing and reach in total acquisition. We debt net fiscal our billion Inc. since expect repaid million at debt at third our our in a to future. $XX of quarter, stood conclusion This We've Time $XXX the XX, million includes of $X.X XXXX near

we $X.XX expect $X.X of compared outlook, range range to company of billion billion from billion. to fiscal XXXX our full $X.XX to $X year total the original Now billion our to turning to revenues for

and billion $X.XX We to $XXX Group Revenues Media million range expect million. Media range National $X.XX Local revenues from to from $XXX to to billion,

the at cost we synergies integrating continue expenses, deliver of as of expect Looking result million acquisition. a Inc. to annual net Time $XXX to

synergies. are achieve modifying to the time these However, we frame

million XXXX. the synergies of $XXX about through realized we've far, quarter of third fiscal So annualized cost

integration; factors, to quarter to spending realize to an including: in $XXX to grow employees expect due the XXXX. savings holding in and fiscal the the yet adjustment We expected. finalize key sale than assets for million is we initially cost some than longer our an million This to due not our Investment business; originally fourth then achieved held additional and certain have keeping $XX incremental several longer anticipated

a basis. earnings first we a That As charge to share range XXXX to from special operations per tax items result, $XX after includes net now for to million fiscal months. in million from $XXX expect X million $X.XX a from continuing $XXX on of and the full $X.XX

- we actual predict not year occurred have may have difficult certainty. results special and are for not with that items vary, Now our additional reasonable that including to the full yet

to range $XXX And fiscal $XXX of $X.XX to we to adjusted to million expect million XXXX earnings $X.XX. range to adjusted from million. compared We from EBITDA our to million $XXX range original per $XXX expect share

nonpolitical in fiscal in Now consistent we for guidance fiscal than expect $XXX of a mind XXXX million outlook is with our political historical for XXXX XXXX report early August. and practice, fiscal when to XXXX. generated Keep we've we provide fiscal in Meredith, results year our that more

business fiscal consumer more particularly automatic and our Additionally, a platform, of the grow usage to consumer for to profitable we're renewals. XXXX, evaluating including credit spending increased business activities - acquisition card investment

back turn Now I'll to to it the Q&A. Tom lead

Thomas Harty

performance in Thank quarter our our revenue Joe. fiscal We're you the much, trends of quarter. the and proud third very seeing in we're fourth

Time consumer the Local and both advertising our to team Media rate while Inc. business Media twice a progress do, Apple revenue team closing, trends was of contribution. performance to turning our accomplished our since in acquisition. and the is its our very great a significant continues deal encouraged continued there's we growth growing subscription and launch offers; National in We're size. company, that in including to Media high Local around e-commerce retransmission at Our on revenue activities; level making the News+ across more closed perform a we've groups; the and response platform; still revenue by: In National

our agreements renew fiscal XX% year. As a of we expect reminder, consent to next retransmission our in

focused those intelligence. as voice, and in number those new opportunities new shopper digital consumer of and clients marketing content on our artificial areas and underway, as on well focused platforms for Finally, including a have marketing as such initiatives we engagement exciting sales

morning. questions happy to any be this you have Now, might answer we'd

Operator

with Dan Benchmark. Kurnos [Operator Instructions]

open. Your line is

Daniel Kurnos

Great. Thanks. Good morning.

Thomas Harty

Good morning.

Daniel Kurnos

waiting I Tom. was it for

So want whatever - Joe, - guys call a look just on here. or housekeeping couple to just it. the of delay you I things can you synergy

got timing of you on the reinvestment all out us of buckets - some just a called just of for filter that You've kind sense buckets. through have what how we so is? you kind X actually Can stuff? might and up size different those And it of

Joseph Ceryanec

if couple than calls broadly that Dan, to compare would previous some sales XXXX. $XX asset taken the in say organization synergies, I in categories. guess, arrayed by though and One, kind have anticipated, into put would of through would around there's gave originally million obviously numbers those like the a and costs, that you what thought from there's people have push I said left the those we've us longer we we've XXXX I facilities we have would keeping as now. so about the we those things brands service to walk stranded

So again, timing is that, a difference.

held As support anticipated some we're we right, it sure longer the or accounting business. the of to areas make we to integrating people functions we've those initially make more in the than finance all with back-office do IT, sure we and

costs. is really feel realizing So timing the those those synergies. it are on a We difference like

into so will those XXXX. And push

said, we're to the committed total. we As $XXX in million

Thomas Harty

profitable you'll subscription and And when in of then out Dan, we source and from it that XX% expense a the subs was mail Inc. the on mentioned, margin Q, you campaign couple subscriptions more mentioned side in the years. lower-margin Jon we words, recent we A renew we around as them other where year had when been has that in the detail. those see Time cash-neutral, X, had lot and subs subs swapping the direct become acquiring see investment

you when think expense detail from our see the expense standpoint. sub in an of increases Q, see line you'll the I So

Joseph Ceryanec

on the SHAPE, it Rachel you've many that of talk Martha the mix or mail of a does Dan, a we've sub. of Interact it through take Stewart platform. us whether time us have heard whether was getting or where larger acquisitions brands Ray or this and inherited load And move customers and to about auto-renewal little it's investment online profitable customers over to with some margin through them those more

but base, we higher working to move So due into the that's little shift inherited as a seeing something we're XXXX. again, bit we're of expenses to

Thomas Harty

that we're platform. to Texture And ago, point area Yes. I product committed other the News+ this. year to Apple would to committed the buy is, here the a even Apple If hadn't

see we very going of So that. is platform. to excited talked we some, And really It's brands It look are the about. involved can to could insignificant getting in us a that it again, we obviously, get this future, our count, margin something took some our we going + adoption. people about from to a with on that just on be $XX get investment, economics on our into sub as we're not that QX. for a standpoint, But from consume subscriptions. consumer we're have if think, to the marginal from it But close increase economic to the Apple perspective platform, about

Daniel Kurnos

it. all color. That's super helpful Got

circ of Just the on before into with kind was get I the and quarter. just telling I for what strength which less concerned I underlying that your margins think the commentary, past in was it's worth,

the out. understand making because, synergies. making you X guys out push of obviously, how does primary mean X that Just is about to this what's Viant go - trying sticking that got there assuming just thoughts X, on I probably And owned point? any it just talked to the Is have SI, stand-alone, up? within on or sales XUMO, the this obviously, you - I'm process, But there X you've really this of dragging the wrap fan-sided that's this is kind

Joseph Ceryanec

head. with that separate with we the with and processes on sub fan-sided the Viant. XUMO actually and even hit the X And - Yes, upon under you Viant, under SI SI though say on there's brands Dan, going

the So is that to adding complication.

Thomas Harty

purchases TIME, businesses platform take and And both don't publication a these, like did forward. with these to we also, of have most FORTUNE just

very we're for some back-office them GSA to contract. under it's do going operations a negotiation complicated So to a as continue

near bring all end still we future. of forward parties to process in the looking very to multiple for So it interested the brands, these in we're have the and

Daniel Kurnos

get quarter. I'd of more in color to seem the most it I - that think, some strength margin little bit Got where to National, there. versus circ and was the just love In came accretion Can it. you expectations understand in you TIME that help better Just of us mentioned improvement better products? as understand shift Was customer of to you're on a in say, and of kind even exactly profile? guys drove auto-renew Apple go-forward renewals the was was, some sort the us our help it +? circ a what and upside without, the Jon it Tom, anyway or on channel, what drive seeing in strength

Thomas Harty

Yes.

obviously, accounting the that that there there's grossed sources. this was of that. how to There a the we with think, of the change accounting historically variety of new standard associated entire do the circulation when and revenue industry I behold, our our lot including things a things Meredith of the recognize little sub are go always year, Time a revenue This switch business. from price Historically, has of the into faced recognition has came Meredith different and was because some out, subs. is, industry bit actually Well, an something didn't right, lo agent up to Inc. and we

of direct mail is driven campaign. driven that, other that are by of of is part So some - part it parts by the it

finally their rates to Meredith's together where the is value first rate campaign. Meredith's did where that's same to cheaper living combined to the so mail a of for strength this was these standard. had the and us consumer that were X%, using has the XX,XXX - Inc. some And to our brands, then credit a social the looking So like At through their as one magazines which under XX% with actually Time company XX% best had the time, different close future. on new direct-to-publisher, one response the incredible way for team was the and in talked more that close the all our that just were do for ads, automatic of magazine we mail mentioned media paid This margin. million our month increase at campaign the added about, create XX of become southern during sourcing that source was also that response of into history the bundling that and orders mailed generated we've we titles, Jon we winter renewals to company certain standard actually the code direct Facebook that we will of in executed cracked campaign we source activity, December card the we we pieces acquired

So side of different e-commerce really We've is lot that also about the long then a have really, circulation activities Women of a our other And for time. business magazines. of talked love period still we strong. around and consumer things.

growing. very we're it's So and line the great excited this see while for seeing been - a and top about talking start we've to the

Daniel Kurnos

Super Perfect. helpful.

growth? Just a Joe print housekeeping. a - just was What and decline and the digital on comparable basis, the

Joseph Ceryanec

said we think digital, about mid-single... - X think we're In down I I combined

Daniel Kurnos

mid-single, think, single? down slightly, and said print what, one individually, was I kind like of so Jon said high each but You down up mid-to

Thomas Harty

but QX portfolio, X%, at kind percentage and as was improved. down digital minus When the X% was the points. sorry, it - QX X a combined combined quarters significantly down, look print you you that X-ish print That's how last trailing couple was got I'm of portfolio, down a XX%. up for

XX% from to down again. So that X%, fourth minus to we actually improve see going in the it's and quarter trending

turnaround. Inc. - of side the color. turn give it So I'll we're Time you finally the some will getting portfolio Jon

Jonathan Werther

it. that Yes. can One print key is reasons for correction would one we course to the is, that our thing I of add

share quarters agency the points two efforts. fiscal take first from place strategic to of market client-facing deals the and large at nearly our 'XX, of company, share So we And through we continue points picked in look holding three if both up perspective. the X.X set strategic comp largely three set. X the if calendar But share our 'XX, and up points kicking we at industry but first in, months picked deals where of competitive of industry this the are against you against look these particularly you

our So forward and the portfolio entire entire perspective. very from to very, about trends and these with historic starting that our we're large see print grow secured, to we've we're look to excited of in wins a operate advertising portfolio that, impact or line really continuing

Daniel Kurnos

No Yes. would that. do you didn't to guys people doubt, think be able

least front. So on at congrats that

Operator

Kyle Evans with Stephens.

is Your open. line

Kyle Evans

Thanks. guys. morning, Good Hi.

Thomas Harty

Hi Kyle.

Kyle Evans

little you backdrop, the And you underlying and more verticals? bit bit trends more other little National what An detail by maybe a on Jon, on challenging update could you provide also challenging? the a on digital pharma Media in then the meant key mentioned Group.

Jonathan Werther

perspective in think nonprescription seeing marketplace, particular, triopoly. home. print terms a desire expect that Sure. for us. high platforms more that greater them innovative a we're continued insights, to continued also travel QX, perspective, in a drugs, what big desire marketplace a trends of from we shift travel the in in higher think continue. of Obviously, party there's And are the an we've trends of across challenges with and Obviously, we're to be branding there's board. in ideas, from from quality strength QX, transparency the From demand had those the formidable insight to those I for I seeing a performance across the in for And some to first from in video obviously, number a demand we some of competitors partner and trends create and for gave continuing in

are through perspective, platforms. some the that large, there continue done down from side. degree, been In across Digital that as food But print bit print up some challenged on has you some little a improving. a areas a pharma the navigate the and a from CPG those bit and perspective. better of those both digital to It's imagine seeing categories are us of beverage, actually a that direct to categories for there have and of terms trends by we're some of are and little can the and challenges response we retail

Thomas Harty

then for Yes. it Kyle, programmatic at when and where when side saw look on our down there's actually we were we Amazon Also, taking challenge we're significantly rock-solid QX is in QX, trend were engagement down an sorry big the But I some say I'm guys from driving QX. performance - of you more we the when marketplace perspective, obviously, share. CPMs. a than and was better perspective, digital, coming actually the look in what QX, X obviously, flattish and in where slightly we we at recently,

great actually than QX we up better being and us a is X% see So trend QX. for actually

the might television. into clients an disclose we're development, be of this from there's to some our pharma in pharma on is regulatory actually side, it's this saw on put But starting shifting and have media a them do in they been former for audio like and actually from pricing big back of because have mention print hear pricing on television dollars print, which easier some to you a to it advertising. thing And in away bigger much you to that actually pharma television one week. interesting perspective than from print development, Now I'd it interested that may in they push

Jonathan Werther

scale is ad one Obviously, future. add And second none. think And would focus. thing a feel our brand to about we reasons good we our other there's is on remember continue I very to portfolio why still to we that

the every channel every category. merged in key $X experiences that of that consumers have really represent $X reach We spent cross

focus real consumers a have alluded Tom on that to. XXX degree We

our And Those As are we're things them of consumers consumers with trends. can what it's shift cetera. our the voice, trending thing entirety. consumption digital revenue factor types is at QX behavior, continue digits other for et business position when the And single actual with whether allow I higher around growth. rate digital add in digital really its for million and it's combined how we they us predict staying us the XXX growth growth, look differentiated that's data really and more our will is business for feel one insights you we towards that OTT, whether to that would go advertising consumer we our their have where growth to

Kyle Evans

now? for And maybe talk Could it. out a Got then few the little in quantify going it side, in the on Super from we're commentary core backing bit Patrick the quarter? current you a on please the the some be since quarter. year about Bowl A pacing Local questions to

Patrick McCreery

Sure.

Kyle Evans

the on subs? on XX% just also then of And phasing renewals

Patrick McCreery

Got it.

up group. third for and was the because impacted that CVS-heavy core X, a quarter obviously Bowl we're by So heavily plus Super was affiliate

spaced evenly in at of without that's July have with some and of beginning was up slightly. at some year. the our Bowl, XX%, fiscal up throughout we I'd say, retransmission it The 'XX, year then XX% calendar, up Super end pretty calendar, and at So May coming the in renewals the in end here the up the of then of this the next

So that XX%, it's for virtually XX-XX-XX.

Joseph Ceryanec

end And Yes. would probably we expect now pacing where about QX, to of for mean, up the that's we're where right quarter. Kyle, I think we're asked you slightly. I pacing

Thomas Harty

the the Bowl. QX with without Consistent Super

Joseph Ceryanec

Yes.

Thomas Harty

final of Some the force.

Joseph Ceryanec

Up bit. a

Kyle Evans

and outlook then in And it's the auto year? quarter? was you. it Thank Where Or your calendar lastly, last it. pacing the LMG. for where Got

Patrick McCreery

Yes.

and that X, So auto into breaking was minus we minus and flat, pacing really foreign, out domestic the quarter see was last XX. continuing quarter. that's fourth foreign was and domestically And that

right think down auto got now we've I X.

Thomas Harty

Professional services.

Patrick McCreery

by But quarter quarter. up professional it's third services, its in pacing fourth in Yes. offset XX XX which was plus and

Kyle Evans

Great. Thank you much. so

Thomas Harty

you. Thank

Operator

Katz with Wolfe Eric Research.

open. line is Your

Eric Katz

a things offerings Good all. going investment. exciting bunch with morning, sounds It regard quite like and product there's of on to your

type much I'm trying going just these sort your incremental further maybe understand the how repurposing originally just guess, of And you'd typical of is are looking forward? to versus levels much ongoing into guide? sort how then I And investments? out, built of So this organic at investment expect is, new versus that these of your maybe

Thomas Harty

Yes.

So this is Tom.

up, we that business shareholder trying almost the maximize of this running talking we at these investments think and when say things we're value I Obviously, original So that or not gave I guide. penny, that weren't but for - we're come beginning Apple all about circulation start something of to term, side that in heard in Texture, our Time and long economics the News+ and Inc. the about practices Apple we've have weren't comes because running practices engages the buys perspective. of got when and that. the best got from we their some business, and our August to fiscal lean it to the you we in would like year about guide the When last of out all about

short-term and profitable to investment cut can term. you be that aren't add sources as going So longer

as circulation usually where subs you the investing business mentioned, they money. that that's start love renew been to I and upfront products road, really and our our So of historically those always business down has you're the print

into the we source things make business files those the that to that decided So were running started investments. at we and looked really we as got

long-term We're So some going is of it's be always that we've it's hard But in significant that we're our of some developing. than of year, stuff digital those finishing going and tradeoffs think wouldn't the to front I we're in fiscal this to make to kind much that of board what investment. on be going Jon the year. more done

Eric Katz

take going your know there shot potentially you you're that I'm side? TV rethink some been were cause you stations to looking out Is you've and said a speculation would sell I here. buyer there broadcast to here. a the of there's on now. sort anything historically to strategy of that Got

Thomas Harty

Well, we're expecting question. that

there's our - I a business. sale of rumors know and lot in not, there's So broadcast not a of been pursuing there's press. we But been stuff underline out there, are the some I

like team, at Patrick PeopleTV Group really year, in of Media sure we seeing the biggest about team some the all are National Obviously, excited both company. the long-term done the Meredith's and we this Media the of for Local be our history Inc. to And Time with on was business get to that continue We laser-focused the the acquisition of the Group acquisition same between time, the making continue been And the National and Local integration have things in opportunities growing brands Media Group. right. acquisition the his Group we and goals management first the and last the acquired, Media that. history, time and has and of sides the this

to continue if broadcast every single and time we over up to we're and value participating shareholder participate. on maximize those but place, side, going market deciding the looking we're comes we watch again, the reviewing and that deal So we're

Eric Katz

right. All

like Sounds Thank fickleness some you [ph] much. very out there.

Thomas Harty

at Okay. morning future we'll and for we our Thanks get Thank Meredith. you look back forward for to Thank very discussions, on and everyone having very here to participating much. much. you work this call

Operator

your We participation. Meredith Corp. the concludes Third for Conference Fiscal you thank XXXX Call. This Quarter Financial Earnings

You may disconnect. now

Hawkeye Acquisition (MDP) 12 May 192019 Q3 Earnings call transcript