Audacy, Inc. (OTC: AUDAQ) today reported financial results for the quarter ended March 31, 2024.
David J. Field, Chairman, President and Chief Executive Officer, stated: “Audacy delivered a solid start to 2024 with Q1 EBITDA increasing 173% vs the prior year. Second-quarter revenues are currently pacing up low-single digits, and we expect another quarter of substantial EBITDA growth, enhanced by our continuing work on expense reductions.
Our improving results are predominantly attributable to a significant acceleration in digital revenue growth, continuing meaningful revenue share gains, and declining expenses as our transformational investments bear fruit.
As previously announced, we received court approval of our consensual pre-packaged Plan of Reorganization, which will reduce our debt by 80%, and are now awaiting FCC approval to complete the process. I want to salute our team for their excellent work in driving financial and operating progress while simultaneously executing our reorganization plan, all without disruption to customers, listeners, partners, vendors or our staff.
The Audacy team is very much looking forward to a bright future, emerging as a scaled leader in the dynamic audio market, distinguished by our best-in-class balance sheet, our top positions across the country’s largest markets, and our exclusive premium content highlighted by our unrivaled leadership in sports audio.”
First Quarter Summary
- Net revenues for the quarter were $261.8 million, up 1% compared to $259.6 million in the first quarter of 2023
- Total Radio revenues decreased 2% while Digital revenues increased 10%
- Total operating expenses for the quarter were $262.2 million, which includes a gain on asset sale of $15.8 million, compared to $271.8 million in the first quarter of 2023, which included a gain on sale of $12.4 million and a non-cash impairment loss of $5.1 million
- Cash operating expenses for the quarter were $252.2 million, down 2% compared to $256.1 million in the first quarter of 2023
- Operating loss for the quarter was $0.4 million, compared to an operating loss of $12.2 million in the first quarter of 2023
- Adjusted EBITDA for the quarter was $9.6 million, up 173% compared to $3.5 million in the first quarter of 2023
- As of March 31, 2024, the Company’s liquidity, which includes restricted cash and the Company’s undrawn Accounts Receivable Facility capacity, was $131 million
Market Share Highlights
- Audacy’s total revenue market share grew approximately 50 basis points in the first quarter, with Radio market share increasing by approximately 70 basis points
- These share gains mark an acceleration from the positive growth trends in 2023
Second Quarter Pacing
- The second quarter is currently pacing up low single digits. April was particularly strong, up high single digits, while May is flat and June is up mid-single digits
- Radio is currently pacing down low single digits for the quarter and Digital revenue is pacing up high teens
Recent Company Developments
- Maintaining Strong Radio Ratings Growth: With the release of the winter 2024 PPM market ratings, Audacy logged its 8th consecutive quarter of Y/Y broadcast and digital ratings share growth in the key A25-54 demographic.
- Streaming Performance: Audacy’s streaming platform continues to deliver consistent growth in both unique users and listening time, with Y/Y growth of +14% in unique users and impression growth of +24% in the quarter, driven by strong growth in Sports and the Audacy Digital Music Stations. Exclusive Audacy Check-Ins and artist collaborations in the quarter included The Black Crowes, Green Day, Mary J. Blige, Billy Joel, Jennifer Lopez, Gwen Stefani, Kings of Leon, Bon Jovi and Lenny Kravitz.
- Podcasting Update: Audacy extended its partnership with Amy Poehler’s Paper Kite Productions with the weekly career advice show Million Dollar Advice. We launched multiple Audacy Originals, including Who Killed the Video Star, which launched in the top 10 on the Apple Charts and as the #1 TV & Film podcast. Expanding on our #1 sports podcast network position, we launched Season 2 of our WNBA podcast Queens of the Court, hosted by Sheryl Swoopes and Jordan Ligons Robinson, and expanded our hit original show Cash the Ticket, one of the largest sports betting podcasts in the country, through a partnership with Fanduel. The quarter also saw two new launches under our growing TenderfootTV partnership, including Untraced, which hit #1 on the Apple Charts.
- Technology Update: We continue to invest in modernizing our Ad Tech Platform solutions to drive sales efficiencies in support of our Digital business, including more robust business intelligence, programmatic capabilities and the ability to scale ad product solutions. We announced two new partnerships: Super Hi-Fi to upgrade our 700 digital Exclusive Stations and streamline our programming, production, and broadcasting capabilities, and ElevenLabs to enhance our production processes, freeing up our creators to focus on building the exceptional content and experiences they expect from Audacy.
- Audacy Brand: We launched two sub-brands to deliver enhanced, differentiated buying propositions to the advertising community: Audacy Podcasts, retiring Cadence13 and 2400Sports as standalone brands while retaining Pineapple Street Studios as our premium production studio; and Audacy Sports, consolidating our broadcast, digital and podcast assets under one name.
- Restructuring Update: The Company received court approval of its consensual pre-packaged Plan of Reorganization in late February. Under the Plan, the company’s debt will be reduced by 80%. The Company is now awaiting FCC approval to complete the process.
This story first appeared on radioinsight.com