Earnings call transcript Q4 2022

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Operator

Good morning and welcome to Audacy's Fourth Quarter 2022 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to introduce your first speaker for today’s call Mr. Executive and CFO Schmaeling, Vice President. Richard may you begin. Sir,

Richard Schmaeling

at welcome Thank replay quarter fourth our Good release. today's will noted or and you, morning to call of earnings conclusion available after Audacy’s replay in shortly link number Rob. be the the conference call. A

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

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

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

we such to website pro of and page financial this certain the you of may our forma refer information. During reference reconciliations non-GAAP measures to for make We measures. Investors financial other at audacyinc.com call,

over David? I'll the David now call turn to Field.

David Field

and Rich. we due Fed. revenues XXXX quarter are began conditions Ukraine Thanks, EBITDA the the and impact in We XXXX a first Audacy’s But expected. in call. earnings inflation to acceleration we year certainly quarter exited XXXX up great fourth aware, of was macroeconomic strong up the XX% deteriorate got Well, XXX%. off particularly primarily all and as advertising not painfully revenue with to and to the all with Welcome war to

had X.X% million, our EBITDA In were were $XXX our quarter, a revenues X%, X% the expenses for low-single-digits so, guidance. to with still up what cry fourth were to from the by revenues XXXX our year, even able down flat-to-down we far And though in-line grow anticipated. we our kicking our down

levels be on quarter this storm XXXX navigate comments start elaborate I be and In expenses that will overview below to expenses of recovery. position we costs, to will but our for our were elevated. a brief drive the low-single-digits our year. want morning, up in note of the Rich that our with to anticipate and I'd However, work remainder my the like we first as

is situation our taking of a making and headway. plan, wide are open concrete challenging, addressing The but executing it action measures eyes number vigorously with and we

Before add helpful progress, I some on look share an our think I might update context. number the it and broader be beyond to

Over few past two key we the years, made have strategically decisions.

to markets across CBS and multi-platform content a strong First, establishing investments, scale and a capitalize and our our largest number a scale And Radio, company initiatives. audio premium achieve size second, transform leadership into the of differentiated country's in and unrivaled positions on of acquisitions, true to acquisition leading with through and radio. sports our tripling through position news

country's be three high today and the all data leading the expected At hugely never of one result, audio to of we competitive platform events. these a building and of potential capabilities, with time extended essentially decisions, scratch. course, are emerging hit an we streaming As podcasters adverse ad with tech from

an now been adverse along while conditions. midst hard. all comprehensive events, pandemic Enduring session three a supply and has the transformation sustained difficult global of disruption strategic with The chain macroeconomic in

improve. and have the said, the work weather made conditions when progress to in recovery to good macro we for that of our storm company All position

of of summer other asset bringing the towers working non-strategic liquidity. our month, for asset a And non-strategic number we sales we since to $XX meaningful sale total sales million way of forward. completed added $XX their have providing million, this Earlier the set a

we down In to our XXXX expect as be addition, reduce we and to to expenses continue flat actual. take actions expenses to versus result, slightly significant XXXX a

were of key platform. essentially reducing significant non-existent tech expenses business We such that podcasting streaming in before, now we in of though even have number costs, as audio have progress a and made the ad good our areas

managed been of our that have the note ensuring we the that have we business, still so while we fund initiatives and areas of would are actions excellence. taken expense I all continue listeners customers that serving selectively critical transformational with to invest carefully in our

I helped continues we would good program local a year. our start also has get for our add breaking green This are local encouraged forward. way that by sales a to of category We performance positive number we relatively with shoots Auto, of record our emergence signs for from cautiously to business as XXXX. annual work the off achieved show our hibernation. largest upfront

up was auto business In QX, X%. our

auto that early our that believe work signs way spend We conversations And progress consumption. organic late seen year. our with are we're having the of the country we our to have see will reinvented auto streaming likely acceleration we through as we since some customers across the Audacy launching in summer, platform constructive lead us in in

were the users fourth audio adding XX%, drive increased prior registration to monthly and of data. collection in installs app During party active year first mobile a our over quarter, by the up our wall despite XX% app

fourth fundamental our business in XX% a QX across including remained listeners with podcasting XX solid the our and a XX metrics U.S. increase U.S. in million million addition, downloads unique In in podcast the network listeners. We quarter, within X% increase in reached

generating a downloads X,XXX in We is from [ph] sports launched new XX podcast albeit particularly the prior Xx [XXXX] growth small versus titles our base. strong studio, number year, are driving, over currently and across which of

national as team, businesses, opportunities growth our look streaming audio drivers audience enterprise to various platform. from remain we drivers on much accelerated calls in growth capitalize our prior As our key the very and digital Those ahead, sales our intact. noted our include

to yields. building performance on pools future tech rates open important and our demand headway and accelerate making are of and increasing also sell-through ad ad our We by products improving

to remained to note economic EBITDA. of recovery which pre-pandemic lower of a In we revenues, XX% addition, those revenues through flow as ultimately that than degree see levels meaningful conditions expect radio normalize, substantially of and roughly

national. narrowly QX. down revenues Some additional radio were color on with Spot X% local outperforming

of digital publishing or ex-podcasting. was off X% podcast up the our be largest X%. which podcasting was of Podcasting moved X% partner, numbers in up up that to impacted radio down May. platform network departure continue Note our was our X% by Network and

Excluding partner, XX%. podcast that were QX up revenues

full-year, the revenues partner. were up XX% departed X%, digital the podcasting X%, up excluding For

quarter large note on to markets sorry, the other is outperform, continue market that One smaller underperform growth.

and total us. just a cause this company issue Audacy. Note Market is in our in relative according our continues our than Miller relative performance more for radio markets Specifically, to revenues top smaller to [ph] concentrated is Since peers, that or market to over significantly X% XX in markets this Kaplan were Data, the largest I say revenue and stronger should not our meaningful markets. [XX%]

Turning to ad to media host pacings and challenging, remain as with regard of a companies, reported business. network particularly national conditions by other market

spending currently or advertisers expect revenues ad pacing have X% dampened by remain are A to down to market mid-single of decline national the uncertainty. sidelined We digits and for number due quarter.

we are challenges deep our solid on the plans to face the of of believe making confront healthy progress storm. organizational emerge a we side in order Notwithstanding ad we the as executing we market transformation, at other headwinds time action in

points. by close want key three I to underlining

are space. competitive number Audacy and country's of the of At we has of Audacy many with leadership the position deep line-up in in audio a and content along strong and First, the audio We growing believe meaningful creator premium platform. that has of competitive, and most popular scaled podcasts brands. growth radio, Audacy and will compelling digital highly radio driver our differentiated of development one think the winning local music be original award unrivaled plus sports a personalities news and is a time when a dynamic

past company product acquisitions initiatives, capabilities. Second, with and substantially much elevated years investments and the over been our multi-platform through enhanced few transformational fundamentally Audacy stronger a is today and has

on choice are assets our We capitalize further offerings of audio with listeners for brand customers. and Audacy our vision working and enhance to of hard making the a unique

third, times, difficult look recognize we current beyond for the And these turbulent many to it challenges. in is

beyond economy earnings much where should to in external are enhanced believe While control, were us, exceed today's Audacy for and in we we subject have we front in our normalized a work factors of potential XXXX. the

have no and growth shortage the opportunities of business. We drivers across

the expect other revenues healthy and a a can lower And recovery their of radio we spending, earlier, substantially significant before. as achieve auto EBITDA and improvement increase at recovers while as categories levels we ad economy than noted disruptive in radio spend

Rich, enable capitalize on to the want Finally, at I their outstanding dedication thank navigate it storm are the to for over doing the and tenacity great work opportunities. before all and us to our Audacy team turning and they to

Rich? to fortunate have the on talented very team. are such individuals group of We a

Richard Schmaeling

Thanks, David.

down quarter year-over-year for revenues net XXX to X% total down Our the close came million, in and X% ex-political. at fourth

to continued than were X%. weaker Our core spot revenues local. down spot be somewhat National

political up XX compared at year in at fourth for the Our came revenues and political X full-year the came XX%, the for revenues million cycle. the versus million XX our in and election were prior XXXX quarter in to million

at advertising auto in up was the was top category, fourth up Looking X% largest auto our dealer year-over-year dealers, associations, spot total, quarter our X%. in including and categories,

category, for to largest lenders, quarter. category third also clinics down year-over-year and and significantly the quarter get second was than X%, was this down Our and the mortgage hospitals Banks better largest and in the was close XX out XX% go our XX%. down were was category which XX% down our categories third

X%. category, largest fourth down our And sports betting was

quarter were up Our digital revenues fourth in X%. the

last year this loss largest still will of is weighed quarter growth Our this continue down loss through podcast client our it the be year. and by second down the by way network to of

both fourth We streaming also a the for of in saw advertising. softening demand podcast and quarter,

year-over-year and sponsorship and were Our revenues network up and event in resilient X% XX%. quarter up were advertising remained the revenues fourth our

for for down will revenue outlook advertising local. be our network revenues has quarter further relative about to We year-over-year. performance. down our advertising mid-single quarter. pacing is full now weakened project the to digits Turning first And spot that the National our

demand continued streaming and softness see also We podcasting. in for advertising both

or expense cash came performance, in to XXX expenses operating our million fourth our up Moving quarter year-over-year. X% at

deferred a accounting accelerated continued costs result titles. of estimate This revenues market a prior Our expenses softness of expectations. in were our greater projected projections consideration also takes podcast into short versus podcast than as recognition the $XX expected, in we content advertising our number for of due of our change falling to the million

actions of during series further in During to a of its enacted company implementing process XXXX, the quarter. actions operating and expenses the the is reduce first the of course

year that of expenses variable to For these expenses and expect this total impact growth in XXXX, for down our inflation operating will fully flat that offset projected actions and the we be our slightly. will selling the

These have to and Radio effort. ongoing productivity technology an us investing our we to has And structure to workforce and across come strongly and our and digital the our efforts of CBS continue based productivity. P&L of we levels higher and organization the team, to while drive part-time higher since to our cost innovate driven our be one-third, sales by X team national these have work full-time steadily full-time This has expense levels years our in and company other continue full reductions within will ago, on capabilities. merger building organizational among reduce equivalents our enabled closed over

expect of this year. the will up single In be our expenses our low for that will be expenses we first quarter, remainder down and year-over-year that digits the

Turning our position. to financial

our by announced have David, including to compliance by and non-core to this as in we monetizing by economic amending our continued with period, liquidity, of our noted improved and purchase in we financial bolstering the January. progress our make As difficult agreement capacity in receivables assets, have midst sustain covenants

first of of Xx. basis to at leverage maintenance lien covenant our Our was compliance compared end net the December, X.Xx

in million of Our maturity the liquidity million from up November. XX.X and million of the at at accounting after was or XXX September revolver XXX our for year-end, end

a our million versus our quarter, $XX date. benefited working many is people strong which per a reduction proceeds by reduction in quarter flow which $X quarter of Vegas to collaborative investment fourth came political of the land in an and capital in for our year and September of effort sale the November, from in in $XX a fruit Our from property the cash average at fourth in million expenditures, of organization, Las across two-thirds revenues, significant capital, million

expect that will at cash we is pipeline we CapEx expect And our additional in are our about year work executed this being The to asset less we payments that XXXX, in XX% Audacy less $XX which tax non-core company than for For around unrestricted subsidiary, million come income what or spent Atlas. million. our than be via a will of sales, $XX continuing XXXX.

remainder proceeds sale so on cumulative sales closed over million. of will of for Atlas summer generate the a this this since from bring close of $XXX we earlier to million or of package of last expect and broadcast to another $XX year, $XX Audacy the sales towers asset the million, to total such month which

an annual our XX, existing for provision report agreement. XXXX consistent receivable its qualification company agreement. credit entered with [precent] the makes [going into credit similar potential a provision breach Bank. January purchase On if DZ financial [ph] the purchase amendment first order our of statements [ph] a agreement such a amendment concern] solely modify lien to This the agreement revolving covenant of with the resulting from receivable covenant This under our under amendment regarding

addition, the the million $XX In requirement minimum amendment liquidity $XX reduced from million. to

does liquidity of debt and the to requirements and operations plan capital. a advertising the assuming and that of XX we the we our that should we our actions sufficient to worse result actions over our be able next get fluctuations support continue working further that As to be in to the these a that with sustain environment months normal take, ought believe, to our we not believe compliance facilities significantly seasonal

mature company's X None The in upcoming lien begin do company's the matures second first to years not until bonds in of now all XXXX from maturities debt lien. are XXXX. and XXXX our

of last a evaluate conducted with to to consultation the working liabilities. Board process close our advisors manage in has several company and the Over options our our months, Directors

the of end explore second the company quarter, lenders to approach the its refinancing Before opportunities. plans to

we details plans not this any Beyond our about time. will providing this statement, be further at

With your that, we'll go questions. to Operator?

Operator

from first proceed Bank. with Aaron Our Instructions] Deutsch Please question. [Operator you. your comes with Thank question Watts

Aaron Watts

for you got I'll this David, your far of you advertising I've the Can about momentum there talk you maybe any you if it's the with are group? that a optimism half progress what currently cadence whether few on. across having bit second digital this the Thanks. a Thank a this. me here. guys. questions give second more in month-to-month in station year as Hi, And so terrestrial start or or year? quarter pickup of for signs later

David Field

Yes. Thanks, Aaron.

the anecdotally wide a we many the So, all the advertisers know about uncertainty same of that and all business business, same about headlines have cautious across concerns. customers our swap and they read remain

tightened reported forward have so, spending through And their And by quarter. as things well, think as get strings many looking others we this as believe advertisers them purse are going to of we that their as improve. increase

now that economic dealing it. been know cycle from do lapping doesn't forever, and against last we've start we'll We speculative. comps that's Obviously, this but with it

As things in the of slowdown quarter last year. second

Aaron Watts

Year then, side Okay. That's think cost helpful. a how Makes we maybe digital the dampening temporary embark sense. And sort you know this digital current as due the beyond accelerated Rich, this, question margin podcast New your on and refining to margins should been with base, backdrop, of focus given I you've your the your on and about combined the expenses? fact

Richard Schmaeling

progress digital at is the space We're tough. for We've more business in podcasting. making in margins how Look, about And a lot [laggard] fertile we moment. look CadenceXX And smarter our to clearly participate profitable. been Podcasting is going we're digital [ph] learned are our contribution at level. the is lot going at frankly the margin the quite where and since and podcast we a forward. there company growth really, profitability. acquired areas It's today

podcast about really a for X,XXX talked us natural to our sports, grow presence. David place

of habit our significant podcast portfolio very podcast We a very also there. local profitable, studios, seeing create consumption podcast to are daily local growing trying our from growth

as want shifted growth get And anytime, were and a [shifted consumption] anywhere of consumption I see years that the look, audio [ph] of people a think there's of So, for future a proposition of see time lot is that audio. smarter ago a what we time we than lot growth. today we're think bright headwind we they essentially podcasting in several

Aaron Watts

if Okay, really helpful. a And one then clarifier. I could, one last

the in again this is you more if On you that quarter year saw the quarter the the of happen that challenged, could like the think and see acceleration of The of a see something declining or the environment that that remains well. acceleration, in event? – you'll podcast revenues drivers expenses you is do fourth first one-time as podcasting, in sounds this

Richard Schmaeling

Yes.

let So, clarify how it. you're characterizing me

first, deceleration growth. the So is in rate seen a we've what of

model titles are our rapidly as these as So, growing growing. has not They're anticipated.

a the and those those over studio, capitalizing and given we're content costs amortizing So, content title. life a producing costs we're of

of at recognize seen rate growth future in the the we a clearly, which of updating of podcasting. so, And costs. the dependent costs those And always upon is and we've we're slowdown our performance estimate recognition those

hasn't still previously It's down, rapidly it not, turned growing. as not we just it's It's anticipated. as growing

we've and thought. because to I won't P&L caused us than costs we things what going done Aaron have we worse more And rapidly down conservative that hope, recognize penalize we is And so, turn think that's expect. fairly to I than forward

to in account tried in we've of our to think judgment, accounting but for that refine we change estimates, and be conservative I those continue course, estimates prospectively. any

like [indiscernible] hard good, about crystal focused we're And So, is asking know. it and ball the it’s future. your to maybe on but pretty you're a

David Field

to side Rich is still just back of to where more largely me because that for be we're performance choppiness of seeing on the to expand brands funding a that Let of by advertisers add what enthusiasm said, and cut are and shops marketplace podcast those DTC investment little one some seeing thing on the in that we great has companies some the driven bit. has little and cut behalf tends DR more

longer-term that investment So, tone of and remains enthusiastic. the and very in it driven by podcasting is overall tenor somewhat

Aaron Watts

Okay. Appreciate the clarification and Thanks. the time.

David Field

Aaron. Thanks,

Operator

with with Steve is Please Fargo. your Wells question question. Cahall proceed next Our from

Unidentified Analyst

more your unpack cost Good Can just [indiscernible] help those a a fixed COVID the additional cost lot guidance base help you for through on with follow-up Maybe is of taken You've how on just actions. items and to where Steve. morning. little a flow think cost us detail? variable currently? business through of you us announced This fixed versus margin. and the Could splits out the costs

Richard Schmaeling

Yes.

in digital variable at expected marketing solutions of our total composition revenues, our are our And when business costs. digital, particularly about our grow of cost look, XXXX look the XX% continues you So to be to strongly. within

like mentioned sold it. we're has over product of other quarter. to in I think in And XX% the that growth lines cost goods fourth tied David, seeing you up podcasting

So, revenue with they're and growth. driver those a growing expenses are of expense consistent

the across a frankly. We facilities have costs, expenses to there's host continued other reduce be to more and of costs done to personnel our from country items whole

– full-year of low-single-digits what's at drive flat-to-down still enacted slightly over more really guidance ongoing refine today we're higher work. have done, we down our to being There's effort. productivity or So, It's to be been for now. our of time. levels to the is right And cost, work an

the that do again for that flat-to-down you'll and variable so, our And after be of full-year, includes total of slightly. see inflation. expenses I expenses that the will impact And think impact after our the

Unidentified Analyst

That's between maybe trends? a and switching that risk you with of really similar leading national trends divergence eventually local frame would being local seeing, helpful. to Then potential the national indicator the seeing over and how ad you're

Richard Schmaeling

we the any question. of evidence don't I see hear I think that.

know to conversations I business advertising And think the I of and than that, reduction sample in by tenor is there more also general today. of restraint our local and and large, caution that indicative from of the our probably with be sense definitive tone of size be the base budgeting. so a much one a of long-term again reduction. more doesn't more It seem long-term tends customers, national to again,

Unidentified Analyst

think And should And business then within needs the about of your is that? continued With guidance, the forward? investment digital last CapEx XX maybe moving it. for capital there we one million how then maintenance Got us.

David Field

primary [ph], CapEx. The our [investments] non-maintenance of the Yes. driver digital

going we the the and features a about platform over some listeners roll-out course so personalization CapEx level our and year. that $XX-ish we think are increasing – features that with that of love the maintenance are platform July investment. new Our become to launched There will to year down an And ongoing that’s really coming there's interactive of increasingly or interesting new in last look, that million. of benefits lot is will of

kind you a about of, generational think of it as kind investment It’s frankly.

over have future going know still to XX [what the streaming increasingly to and you think but, companies, going listen and be broadcast an technology had last know us that the to serving streaming, served XX we’re old you we well our we is to for they going [ph] about are years think is us You years so love. offering, via they're listeners anywhere want serve people and believe] listening increasingly going and we're well to

Unidentified Analyst

Great. Thank you.

Operator

is your from proceed Avi JPMorgan. question question. Our Please with next Steiner with

Avi Steiner

you. Thank

could happened on Just that to then from the podcasting expense very side, I what answered want you've And reverse another go on understand I make everything triggered growth of some And specific positive acceleration accelerated that? something podcast event the previously, back just side? expense that November understand guess, to the one. that's wise the timing the quickly, I’ve got sure guide to I it? I if to

Richard Schmaeling

question, your could you heard we've but – Avi, quiet. if Yes. your somewhat is voice

our were So, as for planning the demand seeing we we completed evolved expectations and XXXX, stock XXXX overall podcast the what from really about trends commentary took and in process so just others the the for our was for of got I of outlook market, miss your revised the we the growth in I XXXX. for estimates anything? question? costs. advertising And view podcast accounting what hope I Did deferred in drove judgment our that's recognition podcasting in for tempered

Avi Steiner

just that's I I possibly my – think it end it to could question. if think want reverse? was the of I know

touch could you on that. If

Richard Schmaeling

that Look, podcast second likely year, that better means economy were up the than of expecting. the if half starts this is to we pick margin in our

stronger our I think podcast our our that than cause will by currently – to margin reverse. based expectations would anticipates current and and revenue things we model turn expand. XXXX if in costs for up beyond, so, And that mean and recognize you on are that's It what

David Field

in And so this market you've has be podcasting be the heard from on tend others, rational. me which And the and of and terms say, in we agreements also margins years become these more balance thing, over land in front. rush whole let occurred I going of us helpful forward. and more and that I'd or that the the that gold rush of deals of most I think more to has tend to more think will, dampened are friendly early the years, order some Avi, cutting now they couple The there's short. so prior And our one are to relatively be extent secondly, benefit just the might to add for marketplace a

Richard Schmaeling

If content, internally and podcast content composition at a I tied like own add at when produce revenues, I recognize we our life of and the costs percentage because could own capitalize that cost to David, of film that, an studio. least title increasing over Avi, those look title, is to proprietary the of expected our our our of we a the the revenues

[closed] robust. audio proportion increasingly really to own of of of long so, [great of segment and term content. the we content] but And increase quite with for working a And view is it's good from are mix revenue that other proprietary [ph] publishers, [ph]

Avi Steiner

Okay. Thank the clarification for you explanation.

correctly? that of Just mean does on in that Am initially? thinking if running comment last costs, not… about that I about CapEx are those some I And capitalization, guess,

Richard Schmaeling

on not No, just they're sheet content elsewhere classified costs. our capitalized We [indiscernible] CapEx. balance

Avi Steiner

size, way just don't know I you Okay, you. Difficulty] the perfect. in [Technical can opportunity on any of the as frame tell subsidiary asset are what sales us assets the unrestricted you today there And Atlas, or Thank if then forward?

Richard Schmaeling

Yes.

we've that, think I done right.

or way out into through storm. to remainder we a And is we well, property all our million as that's of that – Audacy what's expect that time. Avi, towers this difficult over package we've That's Atlas. assets We've of by of proceeds. said the unrestricted goal. of we us another guidance, think gave will And So, weather end work the the this help subsidiary this and added drop of down objective million have through did month. along. our year measure so a a through look, sold And our the $XX And been the $XX company

David Field

that to one to and every non-strategic provided. date is Rich that sale we Every And thing in has just add sale what nature. done plan already we've more

Avi Steiner

for me That last the helpful. Okay. is then one for And thanks and time.

So, are XX borrowings on about I particularly basis a and up at and the least guess I…? principal maturity

David Field

We up didn't… you Avi, broke there. Hey,

Richard Schmaeling

We question. can't your hear

David Field

All queue. right. I'll go Thank back in you. the

Operator

next Our B. Dan Please your with Riley with is from question Securities. proceed question. Day

Dan Day

you morning, Good guys. Appreciate taking question. the Yes.

David Field

Good morning.

Dan Day

So, it OpEx. CapEx in side heaviest looks investment this the both like piece the of on we're past transformation the digital and

on it all the might just guidance that. and be and to the tough around macro say with uncertainty spend, ad Just any

Just an when do to expect how like result resulting that buckets that start whether investments initially incremental revenue just Thanks. in and tech you be, to some you ad these digital would that? or what on expect revenue for in upward it's the initially and in timeline

David Field

the So, we terms programmatic think, currently classify guaranteed I expect of would such in into There we a we increasing There's size it, few is you that we can can't demand that as roll-out. different see which and becoming are process increasingly in of continuing That revenues, pools are and the reinvented audience buckets. to acceleration usage on digital demand platform. that to have important. access audio

also end, more to just and multi-platform we being in enhanced and business effective organization. operations ad across there's are that And ad to products. that, addition driving And the then revenue in building tech

half to accelerating those XXXX I think in see the year much bigger as you're get we of really feeling and going beyond. into bump second and a the

Dan Day

specifically trying over last effort some concerted win two with sort some stronger Yes, I that. with national the individuals if to know a bring advertisers the in advertisers? just of to are is that back macro side, to efforts the but those national kind stronger with, put Audacy, those ties any tough, dollars of to obviously, how we progressing you for me. One year or to for update relationships thanks the like of on had, more

David Field

That's great question. a

progress We regard. are, great I in that think objectively making

in partner We than are, and agencies higher based dealings. those – and this a our large past. brands higher have at much upon higher are engaging level significantly we from a point, of at at the of level we expectations or agencies a revenues And much preferred several

has of advertising current touched the I on let's answer, say and you curve dampened Dan, in the your slowdown opportunity. own capitalizing on the that we are network would and that which significant or say pace national

way position So, that's capitalize put the in saying, is of I forward. a strategy into them long to the rewards scale differentiated company's fully of have a that we impact and for that on us assets of headwinds think but and The but the pretty running stiff expect we're time strategy, capabilities strategy sound. as go that we do from some national that the being, delayed

Dan Day

Understood.

No. Sorry. [Indiscernible]

Okay.

bit you it's bit a larger just remarks. Just one the you. more? category little prepared I in could talked it auto a unpack little a more if for me. for Maybe You about know

So, there? said, think maybe to don't just or past. in You you're I had know XXXX the relative what I was, XX% down XX% it expecting

wondering now? if figures on update where dollar are Just us those you could at

David Field

Sure.

memory little is but a good, your exaggerated. So,

I said XXXX. XX% down was from think it's in where it we've

digital revenues digital from As radio revenues customers X% in our we were in those in the QX, growth digital to continuing and see as noted – from radio sorry, of terms auto up XXXX, well. radio and in up expense we're of radio were spending both – terms

over the we're second hearing. upon of based acceleration car in based as in the and and opposed and and in optimistic has of realities might Tier auto spend it And a imagine, see XXXX the the to on with that we been the as couple X you beyond, the space. improvement have of years, players remain relationships supply half today will conversations chain of market, what And the broad set those where auto in again pretty X, we we X last

Dan Day

Okay, the great. Appreciate guys. time,

David Field

Thank you, Dan.

Operator

Huber with Partners. Huber Craig question. proceed from question with Research your final Please Our

Craig Huber

March? January down just bit I touch quarter month that you or Great. were Is little think a got your X% materially March versus few for trends about pacings first maybe or so? I Thank the worse? by questions. Can further first My maybe ad you. you a signaled on about tracking question.

David Field

would this than I Yes, somewhere February middle fall January probably was say to and the in March point time. likely in better is at

Craig Huber

gets cost And this this job years, had with then and done macro down deal you're have Herculean get year, inflation you any cost others doing three out stuff. about front, working And you things to talking the flat on here issues environment out have business guys the being if on have here to feel and damage front? you’re short-term cost worse here for all than that the Do looking and taking stuff. obviously without the able a you you than more to you and Obviously, that Okay. slightly to obviously, revenue if stuff. permanent worse last room given take the cost against

David Field

Let some and additional at have tackle Craig, may level, high comments. then me a Rich that

I renew think the number hurting margins bottom by save agreement sort going $X us. million, our year, One the of Bears going continue for I some we, of still see play elected on have $X are contracts. P&L, of Chicago line us not example, million, really which disciplined play to And you'll us we there that the will our there's which fact by with sports this forward that to three those think that are that killers. So, are a play fact is margin components on saddled play agreements be

others, we've same too investments, in those same have operations belt that time to will but invest navigate are the historically. our discussed strategically, call to for and as lot spending company and where And as the money at and see and we've we things building suspenders critical the to rewarded time, storm, think we are the some are in a addition, at margin we of future, on In how funding but it's extent, be transform us this for some done our improvement. we elements we where

has that so, also obviously And costs. impacted

we're alleviate And lastly, I I as so, And markets to the a focused where the hurt mentioned us think the than margin our are some on that new slower hold, that do absolutely X% will our in those continues given the smaller sized middle costs. leverage earlier and that growing that think, business, market in of and markets composition it is this take sense too, we technologies killer. operating

we all ahead Rich, continue know some product and these you through So, to work roadmap expenses I – as our factors opportunities. and of to point of want the our to continue I think add stronger those if don't that? on to product to ad reduce margins opportunities

Craig Huber

of the just and you traditional question, side have Can us Okay. would your radio. if ratings, digital traditional things to for maybe your of My update the period? next that data ratings latest on compare radio you on you the

David Field

general the would months – over say few have been Our the trend last ratings have been good. I

think some I à vis vis slightly we've peers. up ticked our of

consideration digitally – vis trend all is where factor said, a line here, and bifurcating have but à are still to the of that has that thing hole us addressable radio overall don't been vis digitally opposed want and a numbers, to ratings our general and been we other think also that number for has a stations our The is I that good our we – in into ratings. as we rabbit of total I reporting go having our the but

Craig Huber

local And why last just is local what about to in this touched worse obviously We're question, I all bit little catch your what there little your what national forth, national is so than take a why advertising you please? your is the and take working bit, your same going downside significantly guess advertisers on don't are on – think my up what's versus the a economy but and on further you've is? your here

David Field

with what heard Well, experiencing say would is and think we've radio I outside. peers I what we're in that – from don't also consistent

think certainly and Audacy. I that is phenomenon a global unique more not to it's

businesses the removed actually of national why, more I day-to-day more As to business. a sort customers in focused little are, tend their think whereas what's the from be our local of to going that brands day-to-day on

if think national. business actual And anything, of better so, may than that I conditions would be would a local barometer

Craig Huber

it. you That's much. very Thank Okay.

David Field

Craig. you, Thank

Operator

Field session. the David reached closing for turn like the would comments. I the question-and-answer of to have to back end We call now

David Field

attending look our call call. for you coming back it. forward everyone to this you Thank first We quarter today's reporting for to May. Appreciate

Operator

This concludes today's conference.

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

Audacy (AUDAQ) 15 Mar 232022 Q4 Earnings call transcript