Question-and-Answer Session
Operator
We’ll take our first question from David Bank - RBC Capital Markets.
David Bank - RBC Capital Markets
I have about six questions. Thanks in advance for your patience. Let me start with the first one. The first one is on the Andrita deal, overall the studio. Can you give a little bit more color into, you’re saying it’s free cash-flow positive this year, but net income statement positive the following year.
What’s the difference there? Is it just the proceeds from the sale? Can you quantify them? Can you talk about what OpEx are you saving? What OpEx do you pick up in rental? A little bit more clarity on the economics of that deal.
The second question is on the e-commerce side, what quarter will this actually take effect? And can you give a little bit more quantitative clarity there?
The third question, Linda, you said something on the international side, there was a one-timer in there. I didn’t quite catch what it was, and maybe that partially answers this question. There was a sequential deceleration in growth on the international TV side, and I was just wondering if you had any thoughts around that.
And then on publishing, we’re looking at a 30% decline in advertising in the first quarter, but the circ is only down 13%. So, is it RJR that’s attributing for the bulk of the other 17%? Or what’s going on there?
Christie Hefner
Bob, do you want to speak to a little bit more about the Andrita transaction?
Bob Meyers
Let me talk generally about the Andrita deal. For us, this is an opportunity to help us focus on our core business going forward and also take advantage of the fact that by putting the facility in the hands of someone who it is their core business, they’re able to monetize it in a way that for us would be a distraction.
It allows us to off load the obligation related to our transponder service agreements, as well as obligations for us to find third parties to fill the excess capacity that results generally from us reducing and changing the mix of television programming that we produce out of Andrita.
So, it will be, as Linda mentioned, cash-flow positive for us this year. We expect the deal to close in this first quarter of this year and going forward, because of the way we capitalize expenses, we should see increasing savings over the next several years for us not being in a position of operating that facility and taking all the costs ourselves.
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