McEwen Mining(US:MUX)2025-08-07 16:00Financial Data and Key Metrics Changes - Total company revenue for Q2 decreased by 5% year over year to $675 million, aligning with the outlook range of down 4% to 7% [16] - Adjusted EBITDA in Q2 decreased by 14% year over year to $151 million, primarily due to declines in high-margin political and AMS revenues [23] - Cash and cash equivalents totaled $757 million at quarter end, with net leverage finishing at 2.8 times [24] Business Line Data and Key Metrics Changes - AMS revenue declined by 4% year over year to $288 million, reflecting ongoing macroeconomic headwinds [16] - Distribution revenue was flat year over year at $370 million, impacted by subscriber declines but partially offset by contractual rate increases [19] - Non-programming expenses decreased by 3% year over year due to operational cost-cutting initiatives [21] Market Data and Key Metrics Changes - The digital products segment showed strong double-digit growth year over year for the third consecutive quarter, indicating a positive trend in digital revenue [17] - The CTV streaming market is valued at $30 billion and is growing rapidly, presenting significant opportunities for local news and community storytelling [11] Company Strategy and Development Direction - The company is focused on building a world-class team culture, leveraging strengths across stations, deploying technology and AI, and growing digital revenue [8] - A major local news expansion was announced, adding dedicated streaming programming in over 50 markets, resulting in over 100 new hours of local news daily [9][10] - The company aims to achieve $90 million to $100 million in annualized core non-programming savings by the end of 2025, having already achieved 80% of this target [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position amidst regulatory changes that may benefit local broadcasters [6][7] - The outlook for Q3 anticipates a revenue decline of 18% to 20% year over year, attributed to the cyclical nature of the business and the absence of significant political advertising [25] - Management remains optimistic about the long-term growth opportunities in digital initiatives and local journalism [27] Other Important Information - The Chief Operating Officer, Lynn Beal, will be retiring at the end of the month after over 35 years in the industry, marking a significant transition for the company [12][13] - The company is committed to returning 40% to 60% of adjusted free cash flow to shareholders over the 2024-2025 period [23] Q&A Session Summary Question: Thoughts on NBC deal structure amidst scrutiny - Management values the network affiliate relationship and is focused on preserving the linear bundle while engaging constructively with network partners [33] Question: Urgency in M&A perspective - Management believes deregulation is necessary and sees significant profit pool opportunities in the broadcast industry, remaining disciplined in M&A approaches [34][35] Question: Areas of cost savings using technology - Examples include automating transcription and video editing, as well as improving workflows to allow journalists to focus on high-leverage activities [41][43] Question: Outlook for core advertising in Q3 - The advertising market may be softer due to economic uncertainty, with expectations for core advertising to decline in the low double to mid-teens range year over year [48] Question: M&A market perspective - Management sees opportunities for value creation through acquisitions, swaps, and sales, maintaining a strong balance sheet to capitalize on these opportunities [54] Question: Trends in reverse comp agreements - Programming fee agreements are showing favorable terms for both parties, with a flattening trend in programming fee expenses [57]