Financial Data and Key Metrics Changes - Media revenues for Q3 2019 were $1.70 billion, an increase of 47% or $340 million compared to Q3 2018, including a partial quarter of the RSNs [24] - Distribution revenues were $679 million, a 105% increase year-over-year; excluding RSNs, distribution revenues were $373 million, exceeding guidance by $7 million [25] - Total company free cash flow for Q4 is expected to be approximately $177 million to $203 million, with full-year free cash flow guidance of $578 million to $603 million [37][38] - Diluted loss per share was $0.64, or $1.15 of income per share when adjusted for non-recurring transaction fees [36] Business Line Data and Key Metrics Changes - Core advertising revenue in Q3 was better than expected, with pro forma Q4 expected to be up mid to high single digits [15][26] - Digital businesses posted over 30% revenue growth in Q3, with total media revenues for Q4 expected to be approximately $1.565 billion to $1.587 billion, up 84% to 87% compared to Q4 2018 [27] - Media operating expenses in Q3 were $745 million, up 62% from the previous year, primarily due to the RSN acquisition and higher programming costs [28] Market Data and Key Metrics Changes - The company now derives about 70% of its revenues from distribution, which is more stable compared to advertising revenues [12] - Political revenues were $6 million in Q3, with expectations of $15 million to $20 million in Q4, and a total of $26 million to $31 million for the year [26] Company Strategy and Development Direction - The company aims to deepen its commitment to local content, becoming a leading provider of premium live local sports and news [11] - The addition of RSNs is expected to create new revenue streams associated with legalized sports betting [12] - The company is contemplating redeeming a portion of the $1 billion of Diamond Sports Holdings preferred stock to improve free cash flow [17] Management's Comments on Operating Environment and Future Outlook - Management noted that 2020 is expected to be the biggest political ad spending year on record, with strong fundraising by both parties [15] - The company views the DISH blackout as a temporary issue, with expectations of subscriber churn improvement in future reports [14] - Management expressed optimism about the strength of the core advertising environment, driven by pharmaceuticals, attorneys, and insurance sectors [61] Other Important Information - Corporate overhead in Q3 was $237 million, including $94 million in non-recurring transaction fees and a $120 million reserve related to litigation [31] - Total debt at the end of Q3 was $12.5 billion, with cash of $1.4 billion, resulting in a total net leverage of 4.8 times [40] Q&A Session Summary Question: Adjustments to Diamond Sports balance sheet - Management confirmed a $400 million earmarked for a put option related to the YES transaction and discussed evaluating the redemption of preferred stock to generate free cash flow [44] Question: Impact of redeeming preferred stock on future M&A - Management stated that redeeming preferred stock does not preclude participation in further RSN M&A opportunities [46] Question: Drivers of core advertising momentum - Management identified pharmaceuticals, attorneys, and insurance as key drivers of advertising momentum heading into the end of the year [61] Question: Status of negotiations with DISH - Management refrained from specifics but emphasized the strong value proposition of RSNs and the importance of reaching an agreement with DISH [64] Question: Political ad revenue potential in RSNs - Management indicated that they are starting to connect political ad revenue with RSNs and expect substantial increases in ad dollars, especially in hot markets [71] Question: Long-term rights cost growth for the new sports segment - Management expects low to mid single-digit growth for expenses related to RSNs [74]

Financial Data and Key Metrics Changes - Media revenues for Q2 2019 were $721 million, a 4% increase or $24 million higher than Q2 2018, exceeding the low end of guidance [14] - Distribution revenue was $367 million, a 15% increase over the prior year [14] - Political revenues in Q2 were $3 million, down from $28 million in the same quarter last year [15] - Media operating expenses were $500 million, up 11% from the previous year, primarily due to higher reverse retrans fees and growth initiative costs [15] - Adjusted EBITDA for Q2 was $193 million, $11 million higher than the high end of prior guidance [17] - Free cash flow for Q2 was $97 million, exceeding the high end of prior guidance by $27 million [19] Business Line Data and Key Metrics Changes - Core advertising was up low single-digits in Q2, with automotive advertising slightly up [34] - Digital business revenues grew 30% in Q2 compared to the same period last year [36] Market Data and Key Metrics Changes - The pay TV universe saw a very slight decline in subscribers during Q2 [64] - The company expects media revenues for Q3 to be approximately $695 million to $703 million, down 4% to 5% compared to Q3 2018 [37] Company Strategy and Development Direction - The company is working towards the acquisition of RSNs and has successfully closed bond financing for this purpose [9][27] - The company aims to achieve investment-grade leverage in the long term, aligning equity value with diversified media companies [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving net retrans growth in the low teens for 2019 and 2020 [15][60] - The company anticipates 2020 to be the biggest political year on record, with campaigns raising more money than in previous presidential elections [35] Other Important Information - The company has a total debt of $3.788 billion and cash of approximately $929 million as of June 30 [25] - The company has raised significant financing for the RSN acquisition, including $3.050 billion of secured notes and $1.825 billion of unsecured notes [27][28] Q&A Session Summary Question: Why is there no step-up in distribution revenues from Q2 to Q3? - Management explained that AT&T's contract is only partially included in Q2 numbers and that other stations are currently dark [44][45] Question: What is the outlook for core advertising? - Management expects core advertising to be flat to up in Q3, with a positive outlook for the full year [34][57] Question: How are underlying subscribers trending? - There was a very slight decline in the pay TV universe, with growth in virtual subscriptions offsetting declines from satellite providers [64][65] Question: What is the status of the RSN acquisition? - Management stated that there is no financial impact from the current DISH blackout as the company does not own the RSNs yet [102] Question: What are the implications of the STELAR renewal? - Management indicated that the STELAR renewal is not problematic for the industry and should be allowed to expire [105]

Financial Data and Key Metrics Changes - Media revenues for Q1 2019 were $673 million, a 5% increase or $30 million higher than Q1 2018, at the high end of guidance [21] - Distribution revenue was $352 million, a 12% increase over the prior year [21] - Non-media EBITDA was approximately $10 million, significantly better than prior guidance [24] - Free cash flow for the quarter was $101 million, exceeding the high-end of prior guidance by $25 million [26] - Total debt at the end of Q1 was $3.883 billion, with total liquidity of roughly $1.5 billion [31] Business Line Data and Key Metrics Changes - Political revenues in Q1 were $2 million compared to $7 million in Q1 2018, aligning with guidance [21] - Core advertising revenues are expected to be flat to slightly up in Q2, with a positive outlook for the remainder of the year [33][34] - Digital business revenues grew 10% in Q1 compared to the same period last year [34] Market Data and Key Metrics Changes - The company expects core revenues to be up for the year, with significant contributions from the service sector and retail [50] - The company anticipates a strong political advertising cycle in 2020, which is expected to drive broadcast media spending [34] Company Strategy and Development Direction - The acquisition of 21 regional sports networks from Disney for $9.6 billion is seen as a transformative move, expanding local sports focus and diversifying content sources [9][10] - The company is focused on digital platforms, political advertising, and programming enhancements as growth opportunities [10] - The company aims to achieve investment-grade status in the long term while managing leverage post-acquisition [87] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the core advertising market, citing improvements in key categories such as services and retail [50] - The company is preparing for a strong political advertising cycle in 2020, which is expected to positively impact revenues [34] - Management highlighted the importance of the RSN acquisition in enhancing the company's competitive position in the market [9] Other Important Information - The company has been recognized for its quality news reporting, with 192 news awards to date [12] - The launch of the Marquee Sports Network is on track for February 2020, with significant partnerships in place [11] - The company is making strides in deploying ATSC 3.0 technology, with plans to initiate deployment in 20 to 30 markets in 2019 [16] Q&A Session Summary Question: What is driving the acceleration in distribution revenues? - Management indicated that renewals and timing of payments from virtual platforms are contributing to the acceleration [41] Question: What is the outlook for core advertising growth? - Management expressed confidence in core advertising growth, particularly in the service and retail sectors [50] Question: How is the company addressing the RSN acquisition's impact on share repurchases? - Management confirmed that share repurchase activity would be suspended due to the upcoming RSN acquisition [44] Question: What is the status of the ATSC 3.0 rollout? - Management reported that testing is ongoing, with significant improvements in signal quality being achieved [93] Question: What are the expectations for auto advertising revenue? - Management anticipates low single-digit growth in the auto category for the full year [86]