Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: In terms of the 3-year plan and as it pertains to 2025, how should we think about the cadence of that playing out over the next few years? Should we expect any revenue growth this year, do you think, or at least in the second half? And is the flat EBITDA margin -- OIBDA margin, excuse me, the goal for this year as well? A: David Rawlinson, President and CEO: 2025 will be a transition year with stronger acceleration of social and streaming revenue. We expect revenue from growing parts of the business to start overcoming declines in core US video commerce as we progress through 2025 into 2026. We aim to maintain double-digit OIBDA margins throughout the 3-year strategic period.
Q: International outperformed pretty notably. What were some of the key differences there, and is there anything you can leverage in the Americas? A: David Rawlinson, President and CEO: The biggest difference is the delayed impact of technology transitions like cord-cutting in international markets compared to the US. Our international markets are less competitively intense, and we have strong local brand presence. We plan to leverage our social shopping capabilities in international markets, which face similar growth opportunities.
Q: Could you touch on your plans for the St. Petersburg facility? If you plan to sell it, what will the proceeds be used for? A: Gregory Maffei, Executive Chairman: The St. Petersburg facility will be decommissioned this year, with content production consolidated at Studio Park. We plan to sell the facility, but the timing and use of proceeds are yet to be determined.
Q: Regarding tariffs, can you quantify your exposure to China and your ability to shift sourcing? A: Gregory Maffei, Executive Chairman: We've reduced our sourcing from China since 2018. While we don't control the total exposure, it's significant. We're working with suppliers to evaluate product pricing and sourcing from different countries.
Q: Could you provide the RCF borrowing today or pro forma for the '25 note pay down? A: Ben Oren, Executive Vice President and Treasurer: We haven't shared specifics, but we used cash to pay down the revolver and will continue to do so. We'll provide more details in our Q1 results.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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