Audacy, Inc.

Total net revenues were $260 million in Q1 2023, down 5.7% year over year. Core spot revenues were down 9%, digital revenues were $57 million and down 2%, and network advertising revenues were down 6% year over year but up 1% in March. Cash operating expenses were $256 million, up 3% year over year. For Q2, management expects total revenues to be down mid- to upper single digits (or, separately, mid- to high single digits) and cash operating expenses to be down about 3% year over year; for the last three quarters of 2023, expenses are expected to be down around 4% or more than $35 million.

David Field emphasized that Audacy is working through a difficult ad market but still believes the company’s differentiated content, sports/news leadership, digital platform, and ad tech transformation can support a better future. He highlighted operational progress in streaming, podcasting, and ad tech, including stronger listening metrics, new content partnerships, and plans to launch more ad products later this year. His tone was cautious but constructive, with repeated emphasis on growth initiatives, cost actions, and future EBITDA leverage.

Richard Schmaeling laid out the quarter’s financial pressure and the response: Q1 revenue of $260 million, cash operating expenses of $256 million, leverage of 3.8x versus a 4x maintenance covenant, and liquidity of $124 million, down $21 million from year-end. He said expenses should fall about 3% year over year in Q2 and about 4% across the last three quarters of 2023, helped by continued cost reductions and asset sales. He also warned that softer ad demand could worsen, that the company may not fully offset the impact, and that Audacy expects to begin refinancing and covenant discussions with lenders before the end of the quarter.

There were no substantive analyst Q&A exchanges shown in the transcript; after the operator introduced the first two questions, the call moved straight to the end of the session. As a result, the main management messaging came from prepared remarks and the CFO’s risk disclosure, especially around refinancing, covenant management, and the possibility that ad weakness could persist.