AUD - Earnings call transcript Q1 2021

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Operator

Good morning, and welcome to Audacy's First Quarter 2021 Earnings Release Conference Call. [Operator Instructions] This conference is being recorded. I would like to introduce your first speaker for today's call, Mr. Richard Schmaeling, CFO and Executive Vice President. Sir, you may begin.

Richard Schmaeling

good and Stacy, you, morning, everyone. Thank is call being recorded. This shortly conclusion link of A number replay call the available be release. replay will today's after at in our noted or the

forward-looking this in statements. statements, company's During these expectations risks results forward-looking company's involve uncertainties. and company from could the may differ current which based materially upon call, are the The actual and make those projected

actual of results the information company's to materially could concerning Additional Form in section factors are on Risk report cause Factors the that annual described differ XX-K.

in updated required As be company's such, may no forward-looking uncertainties We risks any obligation may as by filings. and law. from statements, be time to except update to time SEC assume the

certain of We Investors measures over During information. to Field, now the website non-GAAP our and you financial I'll this reconciliations the Audacy. we reference turn financials. other make call, refer of page will audacyinc.com new at President of call for -- forma and such CEO David pro to to make

David Field

ourselves but a and committed just we how growth better-positioned enhanced our you, rebranded joining and call, potential. since our stronger pandemic spoke emerging and effectively company not of earnings call and first the to from navigating meaningfully the the to first our as quarter earnings transformation we call last accelerating Thank everybody, company pandemic of Audacy's March. thanks, we end On with at the for Rich, significantly

different BetMGM Audacy, Audacy initiatives this both before, fronts strong has we rebranding sign change today include we have new successful a across influencer as where goal and multiple of the marketplace, achieving Rebranding our we the holistic are across multiyear the forward our works to the as on and now progress from #X the in already headed. acquisition number a the as needed partnership announcement the a podcast and growth country's and that of excellent are audiences, the our company brand of very quarter company platforms. our and of that of during our We Audacy progress BXB and a with reflection Podcorn, breadth quarter. Highlights of than made captures well that fundamental of of that expanded company deep BXC organization is all do. a for occurred all full is the highly

been into a fundamentally of the serve have leading audio are as growth the We important Street profile news and Studios, scaled of with reach QL market audio how dynamic position Group spectrum platforms The significant broadcasting, making podcasting well investments growing various the leadership network, and transforming growth of organization customers digital, entertainment podcasting, digital, company. enhancing sports. events, our as and sports and content the we Gaming betting initiatives audience multi-platform full and and including across music, purposely listeners company on Podcorn, are radio, an our CXX, Pineapple the we and the acquisitions across changing the and

nature the of mix. We albeit our of uneven reflecting in advertising the midst strong, recovery, are a business

movies, parks. entertainment, affected things. our how and Several for our go this is large I quarter First to continue local local used concerts do our year deeply recruitment, activate theater, audiences rebounded travel, it were restaurants, categories retail, has transportation national XX% foot revenues a by digital ad be of that prior segments sporting drive quarter, and of revenues various traffic impacted and well portion In of customers radio is as severely places grew prior theme to and the business. to revenues customer many on behind first levels. remain pandemic. to our call advertiser But noted the and down, reviewing events, advertising clear including

later those hand, spending other of businesses majority the impacted across is during fourth Total sign is quarters. later XXXX recovery, home categories, spending of local local third will stage In well, our categories. down of weighted in occur positive inactive the customers average radio a advertiser exceeding strong business local improvement those garden. advertising accounts toward the anticipate and of recovery with now is financial and recovery the base the in recovery decline performed because a a less significantly Because insurance, customer services, ad and including stage categories lawn grocery, we local On concentrated average levels. substantial number of a

us markets, larger which the hit particularly addition, quarter, our during substantially hard markets than our the markets In concentration to peers. exceeds performed due which high in smaller better largest country's

this capitalize Our events now continue expect gained We to take customer-focused improve. our spot have was year. negligible. to sales the quarter, see development and share hold. grow during spending national future Events our political the pandemic, year's for we the down numerous revenue revenues organization in to QX scale business we our Based capabilities. improving spending the upon well-positioned client was X% national ad are expanding the revenues national our political revenues on to initiatives continue believe in of reflecting business radio state as to partial improvements the we across events made during later We quarter, while revenues. of and National last of the completely return combined shut a

relationship, in Very largest quarter, were growth Digital on was which soft quarterly a solutions beginning to to offset We a first our reduction in product significant our at results in weaker strong due somewhat Turning had streaming offerings. Pushkin impact the and our with audio business. podcasting, marketing meaningful parted which ways QX of second results. by our podcasting digital Industries,

an we podcast we had development for a quarter light show slate. have XXXX, In fairly first addition, aggressive calendar while

second a releases of We quarter business kick very podcasting in product expanding half was it expect new to for development see I'll the additional our significant from standpoint. partnerships as acceleration some studios in on our color that active a business as pipeline share QX scheduled and and in. our podcast

into global entered renowned podcast actress partnership with Lovato, the studios singer, CadenceXX an and Demi exclusive activist. superstar Our

launch Meacham to City We Pulitzer and history-focused partnership our Jon co-venture. a Shining also historian expanded studio author Audio, with podcast Prize-winning

relationships launch its based slated to CXX jointly newest releases, and We with this for Cadence's leveraging of charts with follows. endeavor working debuted our where CXXFeatures, scripted Apple on feature within develop Glennon film with working and slate initial unveiled #X its television ears your sits Doyle, content this Things week the more the closely to morning. studio, on year of X movies pioneering projects as next Can their IP. Hard it Do One feature-length to first on at the is CXX

to Studios My Audacy Your and binge original Fugitive from and Away docu-series, Matthew X the MaGill, with Fantasy. Pineapple launched created Stay original docu-series hit exclusive also Street new Our windows on Welcome

also more Show will this with to projects and come. Rich and be announced a We The Netflix and quarter, new with lots HBO distribution Eisen launching we partnership

reflect strong across speakers digital all our digital metrics total digits businesses. average underlying up hours monthly TVs Our solid on fundamentals and of double were smart Digital streaming and connected again all quarter. listening users this

RPM posted period achieved hours. app We growth also streaming since double-digit in in strong And or per our we X,XXX the revenue double-digit our solid rebranding. installs listening growth in

audio, performed with lighter the we business to in business, product and Finally, impact digital growth. business quarter versus quarter, All our expect podcasting rate RPM the first for revenues XX% combined in podcasting turn XX% quarter double-digit And of of of than offerings, digital accounted representing XXXX. first second businesses to we double our growth growth rate. solutions more our as core well digital marketing notwithstanding digital our fundamentals the our

podcast sizes country's publishers includes I all content higher influencer of greatly into As their announced to March, how The the and completed of mentioned of of the largest tap enhances create offering the and X start podcast year. creators earlier, drives builds find Podcorn position Audacy's brands company and audio XX,XXX our country's solves marketplace. community. The enables over brands #X branded monetize expands how XX% podcasters as acquisition premium content. representing acquisition to the one in since scale. the Podcorn's with now advertisers and Podcorn marketplace content. most for original micro-influencer the collaborate hard-to-access creators, for the product on podcast of growth the creator of at and we ROI advertising #X the and native Podcorn, problem brands relevant

While experiencing and business is future. growth, in impact a strategic were we and is performance radio its currently quarter. number our outstanding small, the developments also it during for across have the the important high There expectations of business

digital expanded innovation, steps news with drive enhance to offerings. brands continue We our to market-leading taking

reflection reported of ratings We population. increasingly behavioral March broadcasting, become radio our digital deeper be Notably, also jumped quality patterns prevalent This capabilities and betting platforms. versus broadcast of cross-platform a as in an integration to that establish February. sports normalization and bolster to appears the aggregate our local the across accelerated continue across podcasting, radio of X% Nielsen sales vaccinations

our growth Turning to both sports on active subscribers BetQL strong and affiliate betting. fees. platform We delivered very in

a As value-creating and rapidly is platform betters. data for betting BetQL generating emerging predictive insights reminder, analytics sports a sports

platforms. We the offerings platform enhanced content with and content in are expanded our across making progress solid enhancing integration other

is negligible in one sports of we size, we overall in While complementary Also fairly are the we number have our the opportunities still light unrivaled radio powerful where ad with across particularly headed, in multiyear business our are of FanDuel, leading previously very multiyear to March, is sports landmark about books. excited announced single the QX history largest We one country's radio the deal in partnership of industry. the announced we with BetMGM, partnership had the which a the business.

BetMGM. than grow participating truly well these ourselves growing sports acquisition we in areas We are over effectively as enhancements is time of Podcorn quarter, recovery expect years new number significant the more the of of the some the we strategic to local mothballed Through important reopened the levels. a a for investments during tripling in the next as our exciting with time across months as the segments to the and partnership category same to the in million our rebranding, including to our our the acquisitions XXXX are economy while business, making at few continue advertising rapidly ahead. Audacy. Audacy It of of fully at betting achieved compete an targeted We $XXX positioning

our Our are local digital of listenership share us the combination a nature across position news, compete our increasing podcasting for sports, and platforms. differentiated unique gives digital music, And of by premium content. offerings of competitive exclusive to an powerful our

We national significantly serve improving business have we to enhancing -- capitalize have our by listeners we same revenue the sorry, reducing enhanced business our opportunities. model and and at significant our organization expenses, customers announced development while sales our how time meaningfully on

improvements that note from continue the strategic pacings the new results growth unlock road than in second across in the while And pleased recovery In of a ahead. business meaningfully months map concentration more And prior from are our looking local our and a and categories, to opportunities the over later with big with by as of all customers XX% depressed to better-positioned hampered an will potential those pandemic remain to that, recovery I'll We closing, segments levels high over committed XXXX, years from I'm stronger growth stage to are company emerging to Rich. up are forward radio of local in turn we enhanced advertisers quarter the strong ahead. exciting are year. our and reflecting that the months it

Richard Schmaeling

David. Thanks,

the driven largely which revenues, down revenues year-over-year, advertising net down were quarter, For spot first XX%. total XX% our were by

Local XX% for our the the of our made to local cases improved in and our of like first our spot on significantly mentioned, and Many of quarter dealers, perspective, over these X/X concerts, active disrupted. After year. up COVID key the quarter average than levels. significantly continued New each our to first weeks. be and also the to Events during started category car be go category, first and And only L.A. an other as largest first sign were auto somewhere active categories the end several start national meaningfully down events, Chicago revenues, out addition, of quarter. dine-in advertising restrictions. to quarter. to and more In is cities supply in down parks, account ease down flat due top new still last locked with our continues business amongst From a came fairly people about revenues good revenues, pre-COVID month a to January, slow disrupted markets, David people, restrictions the that for local versus revenues were COVID spot and majority which owing through the peak of more remain that have the require depressed. disrupted X% And year-over-year. sporting casual In as like remain our we'll the shortages York, And for to advertising get was which Other pre-pandemic future. those prior quarter, take pandemic, from amusement than spent prior

report businesses this see fully Our growing local as gets markets year. of second are and during local revenues optimism. starting We remain sales increased confident life and normal to activity back reopened, of advertising that spot levels half they rebound will to the

Our revenues were up first XX% and driven XX% by digital of and revenue. significantly for year-over-year, our total net the services quarter marketing accounted streaming for

For based revenues project up $XXX we will year-over-year. between the pacing, XX% million in our to on $XXX XX% net and second million quarter, our current come total that or

our like million. in $XXX.X excluding the operating onetime at versus total costs in million cash And operating or Our D&A, came down expenses in items came adjusting expenses year. million for XX% $XXX.X unusual prior or at of $XX first noncash total out quarter

quarter, up year-over-year Looking operating second growth. total be rate cash the about will our we at revenue that of X/X expect expenses the our

expenses pro half now expect over or billion. For versus for full our pro our forma expenses our million first total this cash XXXX XXXX be we pre-COVID plus $XX fixed for by forma down to versus of year, operating the And our will we variable million. operating be $XXX of year, more down expenses $X.XX the expenses, expect cash that

our we opportunities to $XX.X our senior podcast for March, for the acquisition consideration liquidity we enables million creators At to this X.XX% next Podcorn, and a the XXXX transaction notes Turning to also of issued and This senior end our maturities refinanced our In $XXX included to last of million over connect revolver of scheduled to our under was performance-based position million. about first-lien liquidity. debt. of our from the marketplace. the $XX used about and $XXX of notes March, of of liquidity down the native by retire on with comprised $XXX #X year end increased X advertising In earn-out years. second-lien X.XX% at unsecured quarter, $XXX pay our XX% cash acquire $XX This hand. at available the also platform up financial podcast invested The brands and $XXX scale. secured was million and influencer's country's million million, and million million proceeds

year low of tracking your million. quarter million range $XX of totaled $XX go we'll end and million net expenditures capital the Our for With $X.X that, to are questions. at now the full our guidance to Operator?

Operator

Watts [Operator Bank. Instructions] Our first question comes from Deutsche with Aaron

Aaron Watts

it of the back all kind a to pre-pandemic, I'm Appreciate revenue time, as back us you if that like advertising. either of to as get is of prior for above you're those sense any you matter or get levels? when, cross EBITDA when might on kind that you And encouraged threshold not the curious, color do sit today, it levels? and of when, turning view corner if a hear you it and David, matter seems just

David Field

and we Aaron. evaluate of a time information access. lot have lot to spend it, a Yes. thinking of about that we Thanks, We

as we're I of coming at, of an looking further in increase of be and time. expect that no XXXX. thinking last quarter of And see to best reason mentioned, rough recovery second XX-plus revenues in We second shouldn't EBITDA this as back XXXX percent mentioned, Rich see As that's quarter year, very in we off through our we why to the as go levels point in year. we

Aaron Watts

And the you early with on Okay. digital podcasting, space. That maybe made some the is of moves kind helpful. then into side, secondly, specifically

mix any of there distribution? areas like And grow, to to in are you to with -- whether continue that organically continued opportunity publishing of think there's terms there You've assets there, bolster are happy or you'd your that's versus you kind your inorganically?

David Field

quickly We created the right? with inside made doing, are of and partners stands we're catch us the anybody everybody in CXX between quality pretty their have both ahead having some up that progress a and we've studio of I the in great work outside about quality Pineapple we've building. reputation, podcast that years, space, the Street others establishing feel pipeline terms business a by think and to that few digital that our tall and to we of been a of and of

terrific feel about that. we So

part think audiences to patina build all distribution the and today. that consumer compelling On player, the it the a app think we Audacy forward. even in I us of see is part it continue going an the will side, it essential was and motivation you're think an the take live for And to going which that enhance new make and be we world rebranding, we to that robust was to of give further experience into more

we're our the our So the caliber, really of addition personalities Podcorn lot the news intelligent ourselves we our terrific caliber with content have and of because is and excited radio across The our by and about the well differentiated of enhancement our of high premium great a influencers quality we a that. that sports as network. on stations, have

at a that work, in solve. how customers, marketplace so extend and that we're the listeners for of creates previously offering said, of and are over to we're that we're ways for the longer tail enhance sort think to in And serve us And forward. our and influencers really our we're embellish to be have advertisers and opportunities problem there, and opportunities going and looking positioned for of about going XX,XXX the forward able and still into important lots all excited we still platform to mid hard now to

Aaron Watts

we as this missed hat comments, putting I leverage, Okay. maybe recover But out? should credit about focus And X in about earlier for it you my I about X you that but on, years your Great. think recovers, that's would obviously, maybe and I X, how your just like as last if on And I down bringing apologize question and the leverage? see live could talked David to and ability think X, EBITDA where in, that squeeze will If me. Rich, for that. your

Richard Schmaeling

Yes.

the things covenant. we're covenant total first first term, comfortably and leverage. focused targeting our this we're We look, inside year, on a So total expect compliant right, that's of be do our Xx reducing at longer leverage. with first-lien to And Xx leverage first-lien and our be net to end

see there we but bit, get years little time. a of think I a a to path couple So in

Operator

from Our with Steven Instructions] question Wells [Operator next Fargo. Cahall comes

David Field

muted. you maybe Steven,

Steven Cahall

that. about Sorry

So I late. And answered little if a apologies, joined apologies already you this.

bit I digital little decelerated a think sequentially.

Just wondering color helpful. if podcast Is of podcast growth might the if digital what timing maybe the sports? and deliveries? you timing be to of you could in there. some sense to And speak new any us Is was could give non-podcast that quarter the as that

David Field

second with the we releases the an quarter. about partner partners quarter schedule talked accelerating our of a And our So really digital how you some was we first audio and of new by streaming -- fact, that did in solutions slower comments and softness And back the on second of well our slate ahead overall in or forth. businesses really marketing as miss fact about growth held podcasting, the in got and largest and We and a parting quarter as fourth rate. in that, Pushkin, talked which our ways offerings reduced about performed beyond so slate podcast well. we digital have

about digital So first that back recognizing our about the reasons for our and feel business, softness I we feel quarter, podcasting the good in were we held good we by mentioned. business, in podcast

Richard Schmaeling

our more to expect Xx first rate. quarter said, be And then we also digital our growth we rate than growth quarter second Steven,

Steven Cahall

helpful. either That's then for Rich And maybe JD. Great. or

about talk opportunity. pretty could from line on the you get content Podcorn. like influencer of you that if wondering interesting That of area sounds sight a Just

you'll you So a sort like is before? the Podcorn as feel little acquisition? the think do can the what ecosystem, better you like podcast of we benefits one. example an Do get that that content just from Pushkin through acquisition have you you into with didn't interesting this feel maybe lock And

Richard Schmaeling

have Well, call. you on the don't JD

our guess do that I that feel robust I So say what with you're is lowest marketplace. we a would margin Pushkin And was me. partner. is it stuck the

of We have building. a original very engine active that products we are

or that on bunch and a have slate new the that we partners announced great discussed yet. of products call that mentioned haven't new we and we a We haven't

good another. see we've of seen little that. bit feel marketplace, the movement as we jump to there'll continue in as So a about to yes, and the X from will And creators already some be of partner

far important but providing As delivers. business we think micro-influencers Podcorn, of great a differentiated again, create it marketplace our requires that opportunity solution, terrific where which -- importance for with strategic with these to which has brands a as influencers integrated connect value are as to ROI, the and Podcorn into I the technical who --

really no there XX,XXX way across solution, participants. at advertising this native and to growing Before was scale do

marketplace we for be think growth going important it's and an important will really that our offering customer So forward. for the our of in part

Steven Cahall

I it And little you and more all sports than one more today me. maniacal digital, different been last have on XXXX, know is the in business then was for betting. costs, a

we getting that run feel the you've of sometime kind of to a we year as sort given what level think through? of So calendar 'XX run on there EBITDA, you on do cost get rate we're to you that get Or made? efforts to pace like basis else this do rate need back think about

Richard Schmaeling

what Yes. in I'll EBITDA increased looks guess We in seeing the That's half. to significant sales what that repeat see local now. pretty in we're David now. like said that to We're our it going levels best XXXX XXXX. activity to is us earlier Look, a rebound back second do get

there's So signs, think that's reasonably pretty scenario. good possible we and a

we'll also be forma. expect more provide work work improve productivity $XXX said permanent. cost or to all these total full But than year we continues it's costs, of Most type operating cash operating -- more to we on In $XXX is later million plus to additional the this permanent. our to efforts year. of permanent. of fixed specificity our heard that is million pro XXXX addition, costs. that company not that Steve, might have you Over that Not of And less about now variable, it

So more over good I time. news front do that in expect

Operator

comes from question Steiner Next with JPMorgan. Avi

Avi Steiner

So the of questions do of but digital mix margins flow-through and your versus how repetitive, changes? think One, I of a may broadcast if couple this as we recovers and apologize of here. some be about revenue

Richard Schmaeling

content -- it's business Look, We're the that the making Yes. is And profitable digital the a is ex-podcasting. into an margin mid- broadcast marginal Podcasting rate mix. over the operating XXs. But effort flow-through of us business, now going little business, the the a that single-digit the on things. to it's marginal upper time more the as business streaming take right It's number do to is to an the low effort legacy on margin. a say they expect reshape business, time. the the get I'll or It's as marketing XXs, for up a business broadcast. look basis as spot The business, if progress, you and to of flow-through recover, mid-XXs. low but still, revenues we the rest to do services at to

we in of back the expand should like to EBITDA the looked as we margin half to at recover and year, start back XXXX. So does we spot when see like if our believe, accelerate, hope look the it more and

Avi Steiner

then And been the just tuck-ins helpful. That's very albeit them. small as fairly acquisition I'd acquisitive, front, you've characterize on

where expansion we forward? you set of and what further going that competency interest are of either been look about -- think or bolstering focused, your And there you core have? As interests how any areas you've should kind of at

David Field

get fraction to I a paid to it Look, a be same price that that to very player sold time, strategic, think of going give space really network we've that. at want stage, in the recent smaller space a our I It's look take, while And space. had and think, at others enter strategic points here that a become of having forward been the in the the in Gaming to approximately And headline is as earlier been at I paid. path the what be need action some have purchase built. valuable on that noting and we $XX million. also have million, to we when Group, able the it, which podcast we but in is formidable the that say, $XXX at QL an you think darn of for, with And acquired disciplined or pretty gets worth

track we've the feel really been sheet. And good see as while what we of our disciplined. of think create about quickly balance we'll and to balance and minimizing recovery. impact prudent our We're do on our we down So to our and and sheet here record able mindful very that the be continue value I importance getting leverage

for we selective. think will So keep if that we and But anything will our value-creating open be very smart eyes see us. we we is really for shareholders our

Avi Steiner

high I capabilities how deliver do a we et X more cetera, on could. CPMs? should And listenership got maybe targeting more last if and can X advertisers? where CPMs evolving see as kind you've How you happens at level, think to That's of about Or smart speakers, great. maybe better

David Field

question, please? up. repeat the I'm Can sorry, you you broke

Avi Steiner

how you -- ahead. curious just go I'm see

Richard Schmaeling

increase in David. a Avi, take I'll now, significant We're Yes, it, very RPMs. seeing our

we're inventory as quite we've streaming increase as becomes of seeing marketers' significantly. increased part seen that So arsenal. increasingly an demand, those important We're CPMs

we're optimistic demand growth CPMs in space CPMs continuing podcasting. both and And also. our in broadcast streaming -- and in we we're so increase expect the also And in recovers our about as

outlook front good. So quite is that the on

Avi Steiner

broadcast better say on to relative fair targeting? longer-term basis should as than a moves more be that it CPMs is guess, towards the industry I

Richard Schmaeling

the high. eclipse But when look think do digital Looks an at that way. That's CPMs. be on broadcast of we that -- the can there's CPMs broadcast obviously it average, we local CPMs will quite

David Field

with think that endorsements. broadcast is the we also caveat and power X the CPMs the that makes justifies things the And that of influencer continue radio do valuable with agree that one so the I that in premium the of the I garner future. will to

Operator

Our Instructions] Riley. Dan with Day next question from [Operator comes B.

Dan Day

app. ask the wanted to rebranded couple about a Audacy just I

over of the like monthly kind cetera, metrics Just app, you it's drive then at I et of cetera. guess, app, think success that et users, seems first, of you the putting exclusively to any course some maybe it to engagement of active guys content the And you're for whether year drive the specific on looking downloads. and sort kind Audacy find there are

download about wider that balance with I on podcast. as want people app guess, continuing people -- reach talk possible to the versus to their exclusively as obviously between content put Just get it

new else think So the Audacy and important with is just you anything that app.

David Field

you've of map. And cited to is Sure. a you're for effort Thanks, slate. we're Dan. lot what to to a differentiated see great And our first on recognize are us content road a is the allowing into putting what And I continue there going energy our content the doing Well, window. it's binge exclusive look, think capitalize window. important that at example, we

content. series that weekly to the X-episode-or-so I binge us these on platforms you're other see The a continue digital way to audio app similar content as rolled episode, So think the types they And the particularly radio we doing been But you adoption bully the nice great look an the rollouts is of some features those make further go more only innovative announcements for basis. platform. incorporate a app for broadcast our platform couple going -- compelling of you'll word, us to Audacy add continue growth for that in yet in we value to going of are pulpit it's of our And offer the being the company next peers. for years. drive hungry accelerate on product that on But see for when we to the group, at out the than think we more there has is recognize the it and country year. we forward. look on can much And a and through the last of other it fastest-growing as into at you really smaller spoken and really opportunity driver

Dan Day

Awesome.

allow to going Apple music on out monetize then roll like has streaming what Spotify to any Just that said paid via subscription. a obviously thoughts creators some sort there. iheartmedia in or podcast And they're their offering and and options to both of Spotify

there on in thoughts throwing well? any So as that

David Field

if and it's be we everything this work our continue there you expect that front our which space. to value, exciting would in in And business see now, we'll And they we see to to at opportunities But time great. new listeners to as work ways got plays explore to models work and us, out. us augment hot model we've to we'll everything would Look, anything, right an for accelerate growth. hard think and just and enhance of shareholders look in be

Dan Day

the in difference news Any the sports me. for interested with between sports more sports tailwinds X versus just stations, rebound the there. just headwind versus particularly music in Cool, -- betting

So be could you would just great. point anything to

David Field

there meaning sports are on time. our sports a we'll no sports been states much revenues question, to betting, Sure. and stations over our sports-specific as content, gaming Insofar has pretty And obviously. concerned, that has though, the impact disproportionate evolve been legalized, where limited, see mobile

better the the little a broadly broader stations here more sports think point is done news our about have But than think less I I the base. customer music. format about it's than and

is see still broader to across going And you hibernation of stations. why ready more or -- a not in that's a the platforms. a in to that's And customer local all air, mode get our sort back slowness all of local affect so if advertising on

Operator

Craig next comes Huber from [Operator Huber question with Research. Instructions] Our

Craig Huber

some explain, down it you've so point? advertising, network your apologize in changed you what same the time. middle strong happened marketplace vantage first this. another What quarter? was covered fourth the of pandemic. if it the from much? was the on Obviously, in I of year-over-year call quarter, you was Can But would, at if your very conference just why I

David Field

on of our us biggest inventory was concentrate inventory. to the you'll think see extent I network for with Audacy work space, we continue own networks. we reduced the that that the And we driver industry that of the one amount forward, audio do us we as well And biggest going our driver to Yes, partners. a recovered greater was in as

Craig Huber

asking going your rest sell I So the But to you're inventory that then are for on sales or the I'm we you force, what you you're expect year, what pulled it it for yourself. sell might and mean, try saying, you I not of what should and to network back it own guess, that suggesting? necessarily line.

David Field

Right.

fluid, our our we and national that think given our sales I -- patterns going remains fits local content and national to and demand as we'll best networks inventory forward. force, team across our allocate own evolve partnership continue things see how

we So have our in that's of inventory think an opportunity, in not locked past. the than we in stone. But it's more best our control what to see interest is important have I is strategic that

Craig Huber

national? material the your there for if was a on advertising, I then in percent year-over-year change versus local And spot could, difference

David Field

on Yes. that the touch remarks. We did in

business national discussed. for back significantly to actually year's was last Local level. got Our down reasons

Craig Huber

be Okay. further here the cut answer net to curious you year, you you that. kind I down expecting And just assuming to could of this. don't to guys appreciate small the much debt if story? able any this How pay to are chase then, do than acquisitions, Richard,

Richard Schmaeling

like than about that does than in $XX less It million more $XXX million, to range.

Craig Huber

right percent Okay. betting is your revenue ad That's now? helpful. What of sports

Richard Schmaeling

we revenues year expect $XX Yes, about million. we be that million sports previously said $XX to betting this to

a small total of it's but revenue today, So our growing. percentage

it of expect a it you up Craig, is to I outlook we a for us year. our category know, be versus Then to more think in be or expect years. last couple that X-digit We XX%

Craig Huber

for, hopefully keeps the your what XXXX? my -- forward, costs getting last latest pro the forma cost And say, going will virus end you're you assuming front, do that cost on cost of thoughts guys, the number how what is here? your settling much on your up the at so rebound think versus And question, better expecting

Richard Schmaeling

Yes.

is I XXXX covenant, we later year. costs this or guidance outlook outlook, mean, then is think versus and with down what the said Craig, to be by our pro for of we'll our year, give XXXX forma than about updated that bigger more. regard we will this million beyond $XXX and million So And $XXX we more that

Operator

to closing Thank for remarks. over floor you. to I management the would turn like

David Field

we back joining now. to care and everybody, us today, all for you Well, thanks, quarter. next Great. very reporting much look Take forward to

Operator

teleconference. today's concludes This

and this for may disconnect thank participation. you You lines your your at time,

Audacy (AUDAQ) 7 May 212021 Q1 Earnings call transcript