Adtech

Audacy Reports Second Quarter Results

Second Quarter Net Revenues Increased 5%
Audacy

Audacy, Inc. (NYSE: AUD) today reported financial results for the quarter ended June 30, 2022.

David J. Field, Chairman, President and Chief Executive Officer, stated: “After a very strong first quarter in which we grew revenues by 14% and significantly increased margin, our second quarter results were adversely impacted by declining macroeconomic conditions and ad market headwinds which reduced our top line growth to 5%. While we navigate the turbulent current market conditions, we are excited by our future growth potential across our scaled, multi-platform businesses, capitalizing on a number of important recent developments that include an enhanced national sales organization, expanded podcast and streaming audio networks, and during the second half of this year, the rollout of a new, reimagined digital platform and ad tech capabilities that will enable us to unlock pools of ad demand and supply that we can’t effectively monetize today. Our transformational development over the past couple of years has meaningfully enhanced our competitive position, strengthening our capacity to serve listeners and customers and enabling a powerful set of opportunities for revenue and EBITDA growth in the dynamically growing audio market.”

Second Quarter Summary

  • Net revenues for the quarter were $319.4 million, up 5% compared to $304.5 million in the second quarter of 2021
  • Core spot revenues were $200.5 million and were flat compared to the second quarter of 2021
  • Digital revenues were $69.3 million, up 19% compared to the second quarter of 2021
  • Total operating expenses for the quarter were $296.2 million, compared to $282.8 million in the second quarter of 2021
  • Operating income for the quarter was $23.3 million, compared to $21.7 million in the second quarter of 2021
  • Adjusted EBITDA for the quarter was $38.5 million, compared to $39.9 million in the second quarter of 2021

Recent Company Developments

  • Reimagined Digital Platform. On July 19th, Audacy launched initial enhancements to its digital platform, including its app and website. These are the first phase of a roadmap that will see additional features, interactivity and content added to Audacy’s app and website over the next several months. As part of this first release, Audacy added enhancements to its patented Rewind technology, curated discovery of content, a redesigned website and seamless cross-device experience and enriched podcast listening. Over the coming months, Audacy will continue to rollout more features that will make Audacy a premium destination for curated discovery of music and podcasts, plus the best local radio – live and on-demand – together in one app.
  • BetMGM Partnership Expansion. BetMGM became the official sportsbook of the BetQL Network, Audacy’s network of sports betting content heard across its broadcast portfolio and digital platforms. This exclusive multi-year partnership is a significant expansion of the current relationship between BetMGM and Audacy. BetMGM will have category exclusivity of the network’s full slate of programming. BetQL Network’s weekly lineup will distribute approximately 100 hours of original content per week on the Audacy and BetQL digital platforms. Audacy will also produce content for live audiences at various MGM Resorts across the country who will host the network inside of BetMGM sports books.
  • CBS Sports Deal. Audacy will be the exclusive, multi-year, ad sales and distribution partner for CBS Sports’ leading network of sports podcasts, with well-known titles like Fantasy Football Today, Pick Six, Morning Kombat, and the college focused network of 247Sports podcasts. The addition of the CBS Sports podcast network content to Audacy’s slate will further bolster our position as the leading home of local and national sports audio content.
  • New York Stock Exchange Continued Listing Standards Notice. On August 1, 2022, Audacy received notification from the New York Stock Exchange (the “NYSE”) that the Company’s Class A common stock (the “common stock”) is not in compliance with the NYSE’s continued listing standard requiring a minimum average closing price of $1.00 per share over 30 consecutive trading days. The notice does not result in the immediate delisting of the common stock from the NYSE. The Company plans to notify the NYSE that it intends to regain compliance, and is considering all available options that are in the best interests of the Company and its shareholders. The Company can regain compliance with the NYSE continued listing requirements at any time during a six-month cure period if, on the last trading day of any calendar month during the cure period, the common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. Under NYSE rules, the Company’s common stock will continue to be listed on the NYSE during the cure period, subject to the Company’s compliance with other NYSE continued listing requirements.

Earnings Conference Call and Company Information

Audacy will hold a conference call and simultaneous webcast regarding the quarterly earnings release on Friday, August 5, 2022, at 10:00 AM Eastern Time. To participate in the conference call, please dial (877) 407-9208 or (201) 493-6784 five minutes prior to the start of the call and provide the following conference name: Audacy, Inc. – Second Quarter 2022 Earnings Call. Participants may also listen to a live webcast of the call by visiting https://viavid.webcasts.com/starthere.jsp?ei=1552589&tp_key=c8ec588c28. Questions will only be taken from participants on the conference call.

A playback of the conference call will be available for one week by dialing (844) 512-2921 or (412) 317-6671 and inputting the following ID: 13730345. A webcast replay of the conference call will be available shortly after the call at the above link. Additional information is available on the Company’s website at www.audacyinc.com.

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