Industry News

Audacy First Quarter Net Revenue Rises 1%

Audacy reports Q1 2024 net revenue of $261.8 million, an increase of 1% over the first quarter of 2023. The company reports a net loss of $1.85 million, a marked decline from the net loss of $35.9 million it reported in Q1 of 2023. While local and national spot revenue fell 3.5% to $153.5 million, digital revenue was up 10.2% to $62.7 million and network revenue rose 10.4% to $21.9 million. Audacy also reportsim revenue for its stations by general format and the company’s sports revenue was $56.6 million – an increase of 6.5% – while its news/talk revenue fell 5.5% to $40 million. Audacy chairman, president and CEO David J. Field comments, “Audacy delivered a solid start to 2024 with Q1 EBITDA increasing 173% vs the prior year. Second-quarter revenues are currently pacing up low-single imdigits, and we expect another quarter of substantial EBITDA growth, enhanced by our continuing work on expense reductions. 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. As previously announced, we received court approval of our consensual pre-packaged Plan of Reorganization, which will reduce our debt by 80%, and are now awaiting FCC approval to complete the process. I want to salute our team for their excellent work in driving financial and operating progress while simultaneously executing our reorganization plan, all without disruption to customers, listeners, partners, vendors or our staff.

Industry News

Salem Media Group Q1 2024 Revenue Down 8.3%

The first quarter of 2024 brought in net revenue of $58.6 million, a decline of 8.3% from the same period in 2023 for Salem Media Group. The company’s broadcast revenue fell 4.6% to $46 million, while its digital media revenue rose 1.9% to $10.7 million. The company reports a net loss of $5.1 million, basically the same as it reported in Q1 of 2023. Regarding its revenue,im Salem states, “Revenue growth from the sale of broadcast airtime is negatively impacted by audiences spending less time commuting, certain automobile manufacturers removing AM radio signals, increases in other forms of content distribution, and decreases in the length of time spent listening to broadcast radio as compared to audio streaming services, podcasts, and satellite radio. These factors may lead advertisers to conclude that the effectiveness of radio has diminished. We continue to enhance our digital assets to complement our broadcast content. The increased use of smart speakers and other voice activated platforms that provide audiences with the ability to access AM and FM radio stations offers potential sources for radio broadcasters to reach audiences. Our broadcast advertising revenue is particularly dependent on advertising from our Los Angeles and Dallas markets, which generated 15.3% and 18.4%, respectively, of our total net broadcast advertising revenue during the three-month period ended March 31, 2023, compared to 15.1% and 18.7%, respectively, of our total net broadcast advertising revenue during the three- month period ended March 31, 2024.”

Industry News

Townsquare Media’s Q1 2024 Revenue Declines 3.4%

First quarter 2024 net revenue for Townsquare Media was $99.6 million, down 3.4% from the same period in 2023. The company posted net income of $1.55 million in Q1, compared to the net loss of $1.94 million it reported in the first quarter of 2023. Townsquare’s Subscription Digital Marketing Solutions net revenue was $18.2 million, down 15.3% from a year ago. Digital Advertising net revenueim was $34.1 million, up 1.3% over Q1 of 2023. Broadcast Advertising net revenue was $45.5 million, down just 1% from a year ago. Townsquare CEO Bill Wilson comments, “I am pleased to share that Townsquare’s first quarter results met our previously issued guidance, and that we are building momentum and gaining market share, primarily due to our local focus and our unique and differentiated digital platform… Our first imquarter performance improved over the fourth quarter across each of our segments. Importantly, our Digital Advertising segment returned to revenue growth in the first quarter (+1.3% year-over-year), and our Townsquare Interactive segment achieved net subscriber growth and month-over-month revenue growth in March, a meaningful turning point for the business. In total, Digital represented 53% of Townsquare’s first quarter 2024 net revenue and Adjusted Operating Income. The strong cash generation characteristics of our assets provided us the ability to execute two attractive equity transactions in April using cash on hand: the accretive share repurchase of 1.5 million shares from MSG at an 11% discount to the pre-announcement share price, and an option buyout at an attractive price point, thereby avoiding shareholder dilution. In addition, during the quarter we repurchased $4 million of our common stock and paid a high-yielding dividend while also investing in our business. We ended the quarter with a strong cash balance of $57 million, and following the April equity transactions, maintained a cash balance of $28 million at the end of April, retaining financial flexibility moving forward.”

Industry News

Saga Communications’ Q1 Revenue Falls 2.5%

First quarter 2024 operating results for Saga Communications reveal net revenue of $24.7 million, a decline of 2.5% from the first quarter of 2023. The company reports a net loss of $1.6 million during theim first quarter compared to the net income of $920,000 it reported in Q1 of 2023. Saga adds that its balance sheet reflects $28.8 million in cash and short-term investments as of March 31, 2024 and $23.7 million as of May 6, 2024. The company expects to spend approximately $5.0 – $5.5 million for capital expenditures during 2024.

Industry News

Beasley Broadcast Group Reports Q1 Net Revenue Down 5.9%

The company says that net revenue for the first quarter of 2024 was $54.4 million, a decline of 5.9% from the same period in 2023, saying this was “primarily reflecting a year-over-year decline in audio advertising and other revenue due to Beasley’s Wilmington station and esports divestitures as well as ongoing softness in the commercial advertising business, partially offset by growth in digital and political advertising revenue.” Beasley reports net income of approximately $8,000 in Q1, compared to a net lossim of $3.5 million for the same period in 2023, “primarily due to the $6 million gain on the sale of an investment in BMI holdings and lower interest expense.” Company CEO Caroline Beasley states, “Beasley continues to advance our core initiatives, which are focused on driving revenue and cash flow, including our digital transformation, revenue diversification and expense management initiatives. We expect digital to account for between 20% and 25% of total revenue in 2024, driven by the ongoing growth and success of our premium content creation and digital services. On the new business front, our dedicated sales teams are leveraging the tremendous audience reach and engagement of our platform to attract new advertisers. In summary, Beasley’s underlying fundamentals – mainly, our local audio and digital platforms and audience engagement – remain strong. We are proud of our teams’ steadfast commitment to delivering exceptional content and services to our listeners, advertisers, online users and sports fans, and remain confident that the actions we are taking to transform our company and strengthen our balance sheet, are laying the foundation for future growth and success.”

Industry News

Cumulus Reports Q1 Net Revenue Declines 2.7%

The company reports net revenue of $200.1 million in the first quarter of 2024, a decrease of 2.7% from the same period in 2023. Cumulus CEO Mary Berner states, “While our Q1 revenue was in line with guidance and a marked improvement from 2023 trends, it is also reflective of the uncertainty thatim continues to weigh on advertisers. With the advertising environment still unsettled, these new terms (spelled out in the preceding story) provide us additional time and flexibility to execute against our key business priorities – accelerating digital growth, reducing fixed costs, and continuing to de-lever our balance sheet – each of which is foundational to our ability to build long-term shareholder value.” The company took a net loss of $14.2 million in Q1, but it was far less than the net loss of $21.5 million it reported in Q1 of 2023. Cumulus breaks out its revenue in segments and the total broadcast revenue for Q1 of 2024 was $139.7 million, down 5.6% from Q1 of 2023. Spot revenue was $90.5 million (down 7.3%) and network revenue was $49.2 million (down 2.3%). The company’s digital segment reports revenue of $34.5 million, up 7.3% over the first quarter of 2023.

Industry News

Cumulus Issues Preliminary Q1 Operating Results

Cumulus Media releases preliminary operating results for the first quarter of 2024 (January 1 – Marchim 31). The company says it expects to report net revenue in a range of $199 million to $201 million – change of between 3.3% and 2.3%. It also expects to report a net loss in a range of $(14.9) million to $(13.4) million and Adjusted EBITDA in a range of $7.65 million to $9.15 million. The company will report its actual first quarter 2024 operating results on Friday, May 3.  

Industry News

Salem Media Group Releases 2023 Annual Report

Salem Media Group’s total net revenue for the full year of 2023 was $258.6 million, a decrease of 3.1% from the full year of 2022, according to its just-released annual report. The company saw operating expenses rise from 2022 to 2023 and took a considerable impairment charge on its long-term assets that factored heavily into it reporting a net loss of $43.3 million in 2023, compared to the net loss of $3.2 million it posted in 2022. Salem operated three business segments: broadcast, digital, and publishing.im The company states, “Net broadcast revenue decreased 3.7%, or $7.6 million, principally due to a $7.3 million decline in national and local spot advertising revenue. Spot advertising revenue has been declining in the industry due to reduced time spent listening, particularly on AM radio stations. Also, the political revenue decreased $3.6 million, or 61.5% to $2.3 million from $5.9 million. This decrease was partially offset by an increase in our broadcast digital revenue which increased $1.5 million or 4.1% due to increases from Salem Podcast Network, Salem News Channel and digital marketing services through Salem Surround. On a Same Station basis, net broadcast revenue decreased 4.0%, or $8.2 million, which reflects these items net of the impact of stations acquisitions and dispositions.” On the digital side, the company reports, “Net digital media revenue increased 0.7%, or $0.3 million. Net digital advertising revenue decreased due to Facebook algorithms that limit political content, the growing use of browsers that block third-party cookies limiting advertising, and the overall state of the economy that has weakened demand for advertising resulting in a lower number of advertisements and a reduction in rates.” Salem’s 2023 annual report can be found here.

Industry News

Audacy Files Final 2023 Fiscal Report with SEC

Audacy filed its 10-K annual report with the Securities and Exchange Commission on Friday (3/22) as it prepares to emerge from Chapter 11 reorganization. The company is waiting on FCC approval. Inim reporting is operating results for 2023 it reveals net revenue of $1.16 billion, a decrease of 6.75% from the full year 2022. The company was hampered by an impairment loss of $1.3 billion in 2023, compared to the impairment loss of $180 million reported in 2022. That and other factors led to total operating expense soaring to $2.5 billion, compared to the total operating expense of $1.32 billion in 2022. The company posted a net loss of $1.13 billion in 2023, compared to the net loss of $140 million reported for 2022.

Industry News

Townsquare Media Reports Q4 2023 Revenue Down 4.6%

Reporting its operating results for the fourth quarter of 2023 and for the full year of 2023, Townsquare Media posts Q4 net revenue of $114.8 million, down 4.6% from the same period in 2022. For the quarter it reports a net loss of $1.9 million. Net revenue for the full year of 2023 was $454.2 million, a decrease of 1.9% from the full year of 2022. Townsquare Media CEO Bill Wilson says, “I am pleased to share that Townsquare’s fourth quarter results met or exceeded our previously issued guidance, and our full year results met the guidance that we issued at the start of 2023… Our Digital Advertising segment delivered net revenue and Adjusted Operating Income growth this year (each +7% year-over-year), offsettingim weakness in the national and network marketplace, and first-time hurdles in our Subscription Digital Marketing Solutions segment. In total, Digital now represents 51% of Townsquare’s 2023 net revenue and 55% of our 2023 Adjusted Operating Income, and maintained a 30% Adjusted Operating Income margin, consistent with 2022’s margin. The strong cash generation characteristics of our assets allowed us to produce $68 million of cash flow from operations in 2023, an increase of $18 million, or +35%, as compared to the prior year. We could not be more pleased to share that given our strong cash position, we were able to repurchase and retire approximately $27 million of our Unsecured Senior Notes at a discount during the year. In addition, we repurchased $17 million of our common stock, and paid a high-yielding dividend while also investing in our business. We also ended the year with a strong cash balance of $61 million and net leverage of 4.43x, retaining financial flexibility moving forward. Despite the lack of tailwinds at our back in 2023, I am very pleased with how the Townsquare team navigated the progressively challenging economic landscape. We outperformed competitors and gained market share due to our local focus and our digital platform. I believe that our performance over the past several years has demonstrated the efficacy of our Digital First Local Media strategy and validated our focus on local markets outside of the Top 50 U.S. cities, reinvigorating my confidence in our business model and our path moving forward.”

Industry News

iHeartMedia Q4 2023 Revenue Down 5.25%

iHeartMedia reports its operating results for the fourth quarter of 2023 and for the full year of 2023. The company’s consolidated revenue for Q4 of 2023 was $1.06 billion, a decline of 5.25% from Q4 of 2022. The company reports net income of $13.9 million during Q4 of 2023. For the full year of 2023, revenue was $3.75 billion, a decline of 4.1% from the full year of 2022. iHeartMedia reports a net loss of $1.1 billion for the full year of 2023 compared to the net loss of $262.6 million it reported for the full year ofim 2022. iHeartMedia breaks down its operations into segments and here’s what it reports for the full year of 2023: Broadcast Radio revenue was $1.75 billion (down 7% from 2022), Networks revenue was $466 million (down 7.3%), Podcast revenue was $407.8 million (up 13.8%), and Digital (excluding Podcast) revenue was $661 million (basically flat). iHeartMedia chairman and CEO Bob Pittman states, “We’re pleased to report that our fourth quarter results were in line with our previously provided Adjusted EBITDA and Revenue guidance ranges. This quarter the Digital Audio Group achieved the highest Adjusted EBITDA and margin in its history, illustrating the success of this high growth business. We view 2024 as a recovery year in which the company returns to growth mode – we expect to see our Multiplatform Group performance improve quarter by quarter throughout the year, and we expect our Digital Audio Group, including our industry leading podcast business, to continue to grow and reinforce its leadership position in the segment.”

Industry News

Cumulus Media Q4 2023 Revenue Declines 11.9%

Reporting its operating results for the fourth quarter of 2023 and for the full year of 2023, Cumulus Media Group reveals Q4 net revenue of $221 million, a decrease of 11.9% from the same period in 2022. The company posted a net loss of $54,000 in Q4 of 2022 compared to the net loss of $98 million it reports for Q4 of 2023. For the full year of 2023, net revenue was $844.5 million – a decrease of 11.4%im from the full year of 2022. Cumulus reported net income of $16.2 million for 2022, while posting a net loss of $117.9 million for the full year of 2023. Cumulus president and CEO Mary G. Berner says, “While 2023 was a tough year across the media landscape, we were able to offset some of the effects of the weak national advertising climate through strong execution in our key focus areas. Specifically, we grew our digital businesses, meaningfully reduced fixed costs, and improved our balance sheet. Looking ahead, though national advertisers are expressing interest in increasing their radio buys, as of yet, ad demand remains choppy, reducing our visibility into the rest of 2024. That said, our industry-leading performance during similarly weak macro environments gives us significant confidence in our ability to navigate through this one and rebound strongly when the advertising market improves.” Looking at Cumulus’ business segments, the digital segment to which Berner refers was up 5% in Q4 of 2023 to $39.6 million, but total broadcast revenue during the quarter was down 18.2%. Spot revenue declined 18.3% and network revenue was off 17.9% in Q4 2023 compared to the same period in 2022.

Industry News

Beasley Broadcast Group Q4 2023 Revenue Down 8.75%

Today Beasley Broadcast Group releases its operating results for the fourth quarter of 2023 and the full year of 2023. For Q4 of 2023, the company reports net revenue of $65.7 million, a decline of 8.75% from the same period in 2022. For the full year of 2023, net revenue was $247.1 million, a decline of 3.6% from the full year of 2022. While Beasley reports net income of $6.4 million for the fourth quarter of 2023 (compared to the $24.5 million net loss it posted in Q4 of 2022), the company reveals a net loss of $75.1 million for the full year of 2023, compared to the net loss of $42.1 million it reported for the full year ofim 2022. Beasley CEO Caroline Beasley says, “Beasley’s fourth quarter and full year financial results reflect the impacts of cyclical political revenue and ongoing advertising market softness, partially offset by the continued success of our revenue diversification strategy and cost management initiatives. Net revenues for the 2023 fourth quarter and full year decreased by $6.3 million and $9.3 million, respectively. Excluding the impacts from a decrease in political advertising and the company’s dispositions of WWWE-AM, WJBR-FM and the Houston Outlaws in 2023 and WWNN-AM imand KDWN-AM in 2022, partially offset by the company’s acquisitions of KXTE-FM and Guarantee Digital in 2022, revenues would have decreased by $0.2 million and $1.3 million in the 2023 fourth quarter and full year, respectively… For the better part of the year, we continued to execute on our successful growth agenda for our digital business that capitalizes on the value of our strong local brands, unique local business relationships and proven marketing capabilities. While macroeconomic pressures held fourth quarter digital revenue flat compared to the prior year, Beasley delivered meaningful full-year digital revenue growth, up 11.4% year-over-year. Our digital business represented 18.4% of full year 2023 revenue. We remain laser focused on prioritizing the growth of our digital platform as a means to diversify our revenue in a cash flow positive manner, and we expect digital revenue to account for between 20% and 25% of total revenue in 2024. Our dedicated sales teams also continue to leverage the tremendous audience reach and engagement of our local multi-platform content to attract new advertisers, resulting in fourth quarter and full year new local business revenue growth of 52% and 20%, respectively. Additionally, the actions we have taken to reduce costs drove a year-over-year decline in operating expenses of 3.3% in the fourth quarter and 2.3% for the full year.”

Industry News

Spotify Posts Q4 2023 Financial Date: Revenue Up 16%

Reporting both its fourth quarter 2023 and full-year 2023 operating results, Sweden-based Spotify reveals Q4 2023 revenue of €3.67 billion, an increase of almost 16% over the same period in 2022. Forim the full year of 2023, Spotify posted revenue of €13.25 billion, an increase of almost 13% over the full year of 2022. However, the company also reports a net loss of €70 million for Q4 of 2023 and a net loss of €532 million for the full year of 2023, the latter an increased loss of almost 24% from 2022 to 2023.

Industry News

Urban One Files Q1 and Q2 2023 Reports

Urban One has been late with its last few quarterly reports due to issues with its former independent accounting firm’s assessment of the company’s sale of its interest in the MGM Harbor Casino. Now, months after obtaining a new independent accounting firm, the company files 10-Q reports with theim Securities and Exchange Commission for the periods ended March 31, 2023 and June 30, 2023. Briefly, the company’s net revenue for Q1 2023 was $110 million, down 2% from the same period in 2022. The company posted a net loss of $2.7 million for the first quarter. For Q2 of 2023, net revenue was $129.7 million, an increase of 9.2% over the same period in 2022. The company posted a net income of $71 million for that period.

Industry News

Salem Media Group Third Quarter Revenue Falls 5%

The company releases its third quarter 2023 operating results and reports total revenue of $63.5 million, a decline of 5% from the same period in 2022. Salem reports that total operating expenses for the quarter increased 31.9% to $99.8 million, while operating expenses, excluding stock-basedim compensation expense, debt modification costs, gains and losses on the sale or disposition of assets, impairments, depreciation expense and amortization expense increased 0.2% to $61.0 million. The company reports a net loss of $31.3 million for the quarter, an increase of 163% over the same period in 2022. Salem presents operating results by segment and reveals that its Broadcast segment’s revenue was $49 million, down 4.2% year-over-year; its Digital Media segment’s revenue was $10 million, down 2.2%; and the Publishing segment’s revenue was $4.6 million, a decline of 17.5%.

Industry News

iHeartMedia’s 2023 Third Quarter Revenue Falls 3.6%

iHeartMedia released its operating results for the third quarter of 2023 and reports revenue of $953 million, a decrease of 3.6% over the same period in 2022. The company reports operating income of $69 million compared to the operating loss of $211 million it reported in Q3 of 2022. iHeartMedia reports a net loss of $9 million during Q3 2023, down significantly from the net loss of $310 million it reported in Q3 2022. The company breaks down revenue into three segments – the Multiplatform Group (broadcast radio, networks, and sponsorship & events), the Digital Audio Group (digital excluding podcast, andim podcast), and Audio & Media Services Group. In the Multiplatform Group, broadcast radio revenue was $455 million, down 6.1% year-over-year, and networks revenue was $116 million, a decline of 8.6%. In the Digital Audio Group, digital excluding podcast revenue was $165 million, an increase of 1.1%, while podcast revenue was $103 million, an increase of 12.5%, year-over-year. iHeartMedia chairman and CEO Bob Pittman says, “We’re pleased to report that our third quarter results were at the high end of our Adjusted EBITDA and Revenue guidance ranges. Our Digital Audio Group’s performance reflects the strong flow-through characteristics of the business and Podcasting continues to be a strong growth engine for the Company; additionally, while the Multiplatform Group does continue to be impacted by advertising industry uncertainty, we’ve seen sequential gradual quarter to quarter improvement throughout the year and we remain confident that the Multiplatform Group will be an additional growth engine for the company as the advertising marketplace recovers.”

Industry News

Audacy’s 2023 Q3 Net Revenue Down 5.6%

Reporting its operating results for Q3 of 2023, Audacy says net revenue for the period was $299.2 million, down 5.6% from the same period in 2022. The company reports a net loss of $234 million, up from the net loss of $141 million it reported in Q3 of 2022. The company reveals that local spot revenue was down 3%, national spot revenue declined 15% and network advertising revenue was down 5%. Digital revenue was $64.8 million, up 3% compared to the third quarter of 2022. Audacy also reports broadcast radio revenue by format and notes that news/talk format revenue was $43.35 million, a decline of 10.8% year-over-year. Sports talk revenue was basically flat at $72 million. Music format revenue wasim $145.7 million, down 7.1% year-over-year. Audacy president and CEO David J. Field states, “Audacy’s third quarter net revenues declined 5.6%, in-line with our quarterly guidance as ad market conditions have remained challenging, particularly on national business. Cash operating expenses were down 2%. We gained revenue share in the quarter, most significantly in radio in which we have achieved accelerating share growth since the start of the year. We also delivered solid gains in radio ratings share and digital audience metrics while making important progress on our tech roadmap and meaningful expense savings to improve our current and future business model. Fourth quarter is currently pacing down 9% on an as reported basis and down 4% on a same-station, ex-political basis. We expect Q4 total revenues to decline by high single digits and costs to decline by high single digits. As noted in our recent public filings, we remain in constructive conversations with our lenders to recapitalize the company’s balance sheet to establish a strong financial footing and position the company to capitalize effectively on our growth opportunities. Notwithstanding current challenges, Audacy has established a strong position as a scaled, leading multi-platform audio content and entertainment company distinguished by our exclusive premium content and top positions across the country’s largest markets. We salute our team for their strong work delivering solid growth against our key performance metrics and serving our listeners and customers with excellence.”