Audacy Reports Huge Drop In Operating Loss, Digital Jumps

 Audacy, Inc. Friday afternoon reported financial results for the quarter ended June 30, 2024.

David J. Field, Chairman, President and Chief Executive Officer, stated: “Audacy continued to deliver strong 2024 financial performance with Q2 Adjusted EBITDA more than doubling, up 116% vs. prior year.  For the first six months of 2024, Adjusted EBITDA is up 128%.  Our accelerating financial performance reflects our significant revenue share gains, low-teen growth in digital advertising, high single-digit growth in network radio, and prudent expense reductions, offsetting continued weakness in traditional ad markets.    

"Notably, our transformational, strategic investments are emerging as a critical driver in our accelerating performance. Recent improvements in our streaming and podcasting platforms, along with further enhancements to our digital monetization and programmatic capabilities are increasing their impact on our top-line and bottom-line results.  

David Field

"As previously announced, we received court approval of our consensual pre-packaged Plan of Reorganization in February and are awaiting FCC approval to complete the process. We continue to expect final approval and emergence to occur during the current quarter.

"The third quarter is currently pacing up low-single digits, and we expect another quarter of significant Adjusted EBITDA growth.

"Our team has done an outstanding job driving our progress and accelerating performance while simultaneously administering our reorganization plan, all without disruption to our partners, listeners, customers, vendors or our staff.  We look forward to a bright future as a strong, scaled leader in the dynamic audio market, distinguished by our industry-leading balance sheet, our top positions in the country’s largest markets and our exclusive premium content highlighted by our unrivaled leadership in sports audio.”

Second Quarter Summary

• Net revenues for the quarter were $301.6 million, up 1% compared to $298.5 million in the second quarter of 2023
• Total Radio revenues decreased by 3%, while Digital revenues increased by 12%
• Operating loss for the quarter was $3.0 million, compared to an operating loss of $135.3 million in the second quarter of 2023
• Adjusted EBITDA for the quarter was $31.1 million, up 116% compared to $14.4 million in the second quarter of 2023
• For the first half of 2024, Adjusted EBITDA was $40.7 million, up 128% compared to $17.9 million in the first half of 2023
• Total operating expenses for the quarter were $304.6 million, which includes a non-cash impairment loss of $5.5 million and a loss on asset sale of $0.6 million, compared to $433.8 million in the second quarter of 2023, which included a net gain on sale of $9.9 million and a non-cash impairment loss of $125.4 million
• Cash operating expenses for the quarter were $270.5 million, down 5% compared to $284.1 million in the second quarter of 2023
• Adjusted free cash flow for the quarter was $18.0 million 
• During the quarter, the Company recorded $13.6 million of Other Income related to cash received for shares it owned in Broadcast Music Inc. (“BMI”), which was acquired by New Mountain Capital, LLC. In total, the Company received $39.1 million from the sale of its stock in BMI
• As of June 30, 2024, the Company’s liquidity, which includes cash, excluding restricted cash, and the Company’s undrawn Accounts Receivable Facility capacity, was $126.5 million
• In July, the Company completed the sale of an FM station in Greenville, SC, that was required by FCC regulations

Recent Company Developments

• Streaming Platform Growth: With continued enhancements in the Audacy platform, Streaming listening continues to grow, with increases in Total Listening Hours during the quarter led by Sports, which again grew double-digits year over year. Installs of the Audacy app also grew double-digits during the quarter.
• Exclusive Artist Content: Audacy launched “On the Record,” an exclusive interview series in which the biggest artists walk through their new albums. Artists featured in Q2 included Billie Eilish, Camilla Cabello and Twenty One Pilots. An exclusive “Check In” series continues to connect with fans and their favorite artists. Q2 Check Ins included The Black Keys, Dua Lipa, Glass Animals, Usher and Dwayne “The Rock” Johnson.
• New Podcast Content and Partnerships: Audacy Podcasts, the #1 Sports Podcast Network according to Triton, launched more than a dozen shows in the quarter with 3 shows in the Top Ten on the Apple Podcasts Chart, including Hysterical, Status: Untraced, and Who Killed the Video Star? The Story of MTV, along with season 2 of the wildly popular WNBA Podcast Queens of the Court with Sheryl Swoopes and Jordan Ligons Robinson, and the new show Women Talkin’ ‘Bout Murder in partnership with Amy Poehler. The company also announced a new strategic partnership with Jenna Fischer and Angela Kinsey for their critically acclaimed series Office Ladies, which debuts at Audacy in August.
• Continuing Audience Growth: With the release of Spring (Apr/May/June) ratings, Audacy notched its 9th consecutive quarter of YoY A24-54 AQH Persons Share Ratings growth. June’s PPM release marked the 28th consecutive month that Audacy outpaced the overall radio market.
• Restructuring: 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.