Audacy Says 2Q Revenue Jumped 73 Percent Y2Y

Audacy, Inc. today reported financial results for the quarter ended June 30, 2021.

David J. Field, President and Chief Executive Officer, stated: “I am pleased to report that Audacy accelerated its recovery from the pandemic as second quarter revenues grew 73% over the prior year, led by a 98% increase in spot radio advertising and 41% growth in digital revenues. In addition, our momentum is continuing into the third quarter as we expect that revenues will increase by about 10% sequentially from the second quarter and by about 25% compared to prior year.

David Field

"We continue to make great strides in enhancing our business and elevating our competitive position. During the second quarter, we executed a rebranding of the company as Audacy, a name that reflects our evolution into a leading, multi-platform audio content and entertainment company with scaled audience reach and an important leadership position across the full spectrum of the dynamic and growing audio market – including broadcasting, podcasting, digital, network, events, music, news and sports. Our recent acquisitions in podcasting and sports betting, as well as numerous growth investments have significantly enhanced our ability to capitalize on broader advertising trends, augment our product line and better serve our listeners and customers.

"We are emerging from the pandemic as a meaningfully stronger and better positioned company with significantly enhanced growth potential and are excited by the opportunities ahead as we continue to drive innovation and development of new products, content, and capabilities."

Second Quarter Summary

• Net revenues for the quarter were $304.5 million, up 73% compared to $175.9 million in the second quarter of 2020
• Spot revenues were $202.8 million, up 98% compared to the second quarter of 2020
• Digital revenues were $58.4 million, up 41% compared to the second quarter of 2020
• Total operating expenses for the quarter were $286.5 million, up 29% compared to $221.4 million in the second quarter of 2020
• Operating income for the quarter was $17.9 million, which included a non-cash impairment charge of $0.7 million, compared to operating loss of $45.5 million in the second quarter of 2020
• Adjusted EBITDA for the quarter was $39.9 million, compared to a loss of $20.0 million in the second quarter of 2020
• Liquidity at the end of the second quarter was $194.0 million, up from $160.2 million at year end, comprised of $149.3 million of available revolver capacity and $44.7 million of cash on-hand
• In July, the Company entered into a $75 million accounts receivable securitization facility to provide additional liquidity, to reduce the Company’s cost of funds and to repay outstanding indebtedness under the Company’s credit agreement

Aduacy's press release noted the radio industry is powering out of the COVID-19 crisis. In PPM markets, June 2021 CUME has reached 98% and AQH is at 94% of March 2020 levels. According to Field, "we see listening returning to pre-pandemic levels with cross-platform ratings growth, including double digit monthly gains in OTA in PPM markets. As our audience continues to grow, so does our ability to monetize it across the platform, as reflected by 67% Y/Y growth in streaming RPMs (revenue-per-thousand listening hours), and 93% Y/Y growth in podcast RPMs (revenue-per-thousand downloads)."