Townsquare Media (TSQ) Q2 2025 Earnings Call August 06, 2025 08:00 AM ET Speaker0Good morning, and welcome to Townsquare Media's Second Quarter twenty twenty five Conference Call. As a reminder, today's call is being recorded and your participation implies consent to such recording. At this time, all participants are in listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your ...

Investor Presentation INVESTOR PRESENTATION August 2025 FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES This presentation contains, and our other communications may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements, written, oral o ...

1 Disclaimer and Notes In General. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation." Gannett Co., Inc. is referred to in this Presentation as "Gannett," "we," "us," "our" or the "Company". Cautionary Statement Regarding Forward-Looking Statements. Certain items in this Presentation may constitute forward-looking statements within the mean ...

Group 1 - Meta Platforms reported better-than-expected earnings and revenues for its second fiscal quarter, driven by strength in the digital advertising market [1] - The company continued to perform well in its core digital ad segment, experiencing double-digit top line growth [1]

Group 1: Sirius XM Overview - Sirius XM is currently facing significant challenges, with a total return of negative 55% over the past five years, while the S&P 500 has returned 113% in the same period [1] - The company generates a recurring revenue stream, with 77% of its sales coming from subscriptions as of Q1 [5] - Sirius XM holds a legal monopoly as the only satellite radio provider in the U.S., which provides a competitive advantage despite competition from streaming platforms [6] Group 2: Financial Performance - In Q1, Sirius XM reported a 2% year-over-year decline in domestic subscribers, a 4% decrease in revenue, and a 15% drop in net income [7] - The stock is considered cheap, with a forward price-to-earnings (P/E) ratio of 7.9 and a dividend yield of 4.81% [7] Group 3: Comparison with Amazon - Amazon has significantly outperformed Sirius XM, with shares increasing by 12,000% over the past two decades, contrasting Sirius XM's disappointing performance [9] - Amazon benefits from multiple growth trends, including online shopping, digital advertising, cloud computing, and artificial intelligence, while Sirius XM struggles against streaming services [10] - Amazon's operating income surged by 86% year-over-year in 2024 and is expected to grow faster than revenue, indicating strong cost optimization [11]

Financial Performance Highlights - The company achieved a $77.4 million year-over-year improvement in free cash flow in Q1 2025[15] - Net income attributable to Gannett grew by 7.6% to $10.2 million in Q1 2025, compared to $9.5 million in Q1 2024[15] - Adjusted net loss attributable to Gannett improved by $23.4 million, from a loss of $36.4 million in Q1 2024 to a loss of $13.1 million in Q1 2025[18, 19] - Cash provided by operating activities grew by 3.8% to $23.3 million in Q1 2025, compared to $22.5 million in Q1 2024[15] - Total revenues were $571.6 million in Q1 2025[39] - Adjusted EBITDA was $50.5 million in Q1 2025[45] Digital Revenue & Audience - Total digital revenues reached $250.4 million in Q1 2025, accounting for 44% of total revenues[29, 31] - The company reached 195 million average monthly unique visitors in Q1 2025[12, 34] - Digital-only subscription revenues were $43.3 million in Q1 2025, representing 8% of total revenues[29] Debt & Capital Structure - Total debt paydown was $74.5 million in Q1 2025[12, 34] - Cash and cash equivalents stood at $85.9 million[34, 37] - First Lien Net Leverage was 2.6x[34, 37]

Core Insights - The future 15 years are critical for determining the new global economic order [3] - Growth will be highly concentrated in a few "arena" industries rather than being evenly distributed [4] - The top 12 performing sectors from 2005 to 2020 accounted for half of global economic profits by 2020, leading to the emergence of numerous companies with market capitalizations exceeding $50 billion [4] Group 1: Key Drivers of "Arenas" - "Arenas" are defined as dynamic ecosystems characterized by high growth and high vitality, driven by technological breakthroughs, investment upgrades, and market expansion [7] - The rise of these "super tracks" is fueled by three deep-seated forces: 1. Technological and business model transformations, such as cloud computing, AI, and autonomous driving, fundamentally reshape products and services [8] 2. Gradual investment opportunities that yield significant returns and sustained competitive advantages through technological upgrades and data accumulation [9] 3. Massive or emerging market demands driven by global digitalization and energy transitions [10] Group 2: Competitive Landscape - The coupling of these three forces creates a positive feedback mechanism, leading to an "upgrading competition model" where companies must continuously invest to avoid obsolescence [11] - The report identifies 18 key arenas poised for growth, including: 1. E-commerce, projected to reach a retail market penetration of 27% to 38% by 2040, up from approximately 20% [15] 2. Electric vehicles, expected to account for over 50% of global passenger car sales by 2040 [17] 3. Cloud services, with a compound annual growth rate of 17% from 2005 to 2020 [19] 4. Semiconductors, anticipated to grow at 6%-8% annually over the next decade [21] 5. AI software and services, among others [23] Group 3: Emerging Sectors - The report highlights additional sectors such as digital advertising, streaming video, shared autonomous vehicles, and the space economy, all of which are experiencing significant growth [25][27][29][31] - Cybersecurity is increasingly viewed as a strategic investment area due to the rising costs associated with cyberattacks [33] - The battery market is projected to see electric vehicles dominate with an 80% share by 2040, driven by advancements in battery technology [35] - The gaming industry is expected to see 40% of the global population as gamers by 2030, indicating a shift towards content industrialization and social immersion [36] Group 4: Strategic Implications - The key insight from McKinsey's report is that future competitiveness will depend on the structure of these arenas rather than traditional industry labels [47] - For entrepreneurs, the challenge lies in entering the right arena and building a compounding mechanism [47] - Investors should shift their decision-making logic from selecting companies to betting on arena structures [47] - Policymakers and developers must focus on creating ecosystems that can nurture future arenas, which is becoming a more valuable strategic task than mere investment attraction [47]