Audacy Reports 1Q Net Revenue Fell 5.7 Percent

 Audacy, Inc. today reported financial results for the quarter ended March 31, 2023.

First Quarter Summary

• Net revenues for the quarter were $259.6 million, down 5.7% compared to $275.3 million in the first quarter of 2022
• Digital revenues were $56.9 million, down 2% compared to the first quarter of 2022
• Total operating expenses for the quarter were $271.8 million, which includes a gain on sale of $12.4 million and a non-cash impairment loss of $5.1 million, compared to $266.8 million in the first quarter of 2022, which included a gain on sale of $2.5 million and a non-cash impairment loss of $1.5 million
• Cash operating expenses were up 3% compared to the first quarter of 2022
• Operating loss for the quarter was $12.2 million, compared to operating income of $8.5 million in the first quarter of 2022
• Adjusted EBITDA for the quarter was $3.5 million, compared to $26.0 million in the first quarter of 2022
• As of March 31, 2023, the Company’s liquidity was $123.7 million

David Field

David J. Field, Chairman, President and Chief Executive Officer, stated: “First quarter revenues were down 5.7% with local sales significantly outperforming national as challenging ad market conditions persisted. Cash operating expenses were up 3% during the quarter, but are expected to be below prior-year levels for the remainder of 2023."

"Notwithstanding the difficult economic headwinds, we remain steadfastly focused on delivering significantly higher future levels of Adjusted EBITDA, capitalizing on our multiple growth drivers and our differentiated premium competitive position in the dynamic audio market. We are making progress on each of our drivers, including our podcasting and digital marketing solutions businesses, our reinvented streaming audio platform, our emerging ad tech and ad products, and our enhanced national enterprise business development efforts. In addition, we are encouraged to see some positive signs in our auto business as we continue our vigorous work to weather the storm and await future improvements in market conditions."