Audio giant Audacy released Q1 earnings, characterized by CEO David Field as “a solid start to 2024.” Audacy’s financial positioning is complicated by a recent bankruptcy, but the company is moving smoothly through that financial reorganization process with uplifting net revenue numbers and a highlight on digital audio contributions.
Field describes his company’s balance sheet as “best in class.” Key metrics below:
- Net revenues for the quarter were $261.8 million, up 1% compared to $259.6 million in the first quarter of 2023
- Total Radio revenues decreased 2% while Digital revenues increased 10%
- Total operating expenses for the quarter were $262.2 million, which includes a gain on asset sale of $15.8 million, compared to $271.8 million in the first quarter of 2023, which included a gain on sale of $12.4 million and a non-cash impairment loss of $5.1 million
- Cash operating expenses for the quarter were $252.2 million, down 2% compared to $256.1 million in the first quarter of 2023
- Operating loss for the quarter was $0.4 million, compared to an operating loss of $12.2 million in the first quarter of 2023
- Adjusted EBITDA for the quarter was $9.6 million, up 173% compared to $3.5 million in the first quarter of 2023
- As of March 31, 2024, the Company’s liquidity, which includes restricted cash and the Company’s undrawn Accounts Receivable Facility capacity, was $131 million
“Our improving results are predominantly attributable to a significant acceleration in digital revenue growth, continuing meaningful revenue share gains, and declining expenses as our transformational investments bear fruit” –Audacy Q1 report
David Field set the stage for Q2, noting that the company is “currently pacing up low single digits.” Here is how that’s balanced:
“Radio is currently pacing down low single digits for the quarter and Digital revenue is pacing up high teens.” –David Field, CEO, Audacy
The streaming platform is in a state of “consistent growth” in unique users and time spent. The company credits strong performance in Sports, and the Audacy Digital Music Stations.
In podcasting, Audacy launched multiple Audacy Originals, notably Who Killed the Video Star.
Investment in the Audacy Ad Tech Platform has included “more robust business intelligence, programmatic capabilities and the ability to scale ad product solutions.”
On the front end of public perception, Audacy launched the Audacy Podcasts unit (RAIN coverage HERE).
In the bankruptcy recovery front, we see this: “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.
