International Speedway Corp. (NASDAQ:ISCA) Q1 2019 Earnings Conference Call Transcript
Apr 04, 2019 • 09:00 am ET
Thank you. (Operator instructions) And your first question comes from the line of Jaime Katz with Morningstar. Please go ahead.
Hi, good morning. Thanks for taking my questions.
So, I think you guys talked a little bit about value ticketing and maybe the mix having an impact on admissions. But I'm curious if the demographics of those attendees are changing and maybe you're able to capture some new underpenetrated cohorts coming into the space that you weren't able to reach before.
Greg S. Motto
Hey Jaime, it's Greg. Yes, we are undergoing a very extensive consumer marketing and sales strategy, which we've been talking about; which includes five key strategic categories of acquisition of data, segmentation analysis using predictive modeling, engagement with various outbound strategies using all media channels, monetization to convert these tickets into sales, and building these customers through a retention program which I also think is important to note here that we focus on converting our first time customers to second year customers. What we found is once a customer is a second year customer, they're 75% or more likely to continue renewing their tickets. So, we think these strategies can encompass an opportunity for us to stabilize our attendance trends and to market our properties year round.
And then is that what you guys have been seeing? Is it actually bringing in new consumers to the sport or is it just existing consumers trading down to the lower priced tickets? Is there a way to determine that maybe is a better question?
Greg S. Motto
Well, I think we use this information again to market to these consumers in a -- in our various ways and where consumer demand pursues, then that's where the results will come.
Okay. And then is there any update on what next year looks like after the Monster Energy relationship lapses?
Jaime, this is John. NASCAR is currently, as they've advised us, in the marketplace looking for an upper tier of multiple sponsors to present the series going forward. I think we've talked on previous calls that the costs for one company, such as Monster or previously Sprint or going back to the Nextel Winston days, is a pretty significant number and we feel and agree with NASCAR that having more of let's call it the Olympic model of presenting sponsors to represent the series is a better way forward. They're currently in the marketplace talking to folks. It presents a great opportunity for 2020 and beyond, but I don't have any more to add to that at this point.
Okay, I was just curious if there was any update. And then lastly, I know you don't want to talk about a potential transaction, but it did cost the business $0.05 this quarter. So, maybe a better way for us to think about it is to better understand what we expect the expense to evaluate this transaction to be and maybe that will help us think about what a timeline might be because I assume that