As Audacy positions itself for a brighter future post-Chapter-11-restructuring, the company has released its final financials for 2023. The broadcaster reported $1.17 billion in net revenue, down 7% from $1.25 billion in 2022 in its SEC filings made on Friday afternoon.
The broadcaster’s primary source of revenue in 2023 came from local AM/FM advertising. National advertising followed as a substantial revenue stream, despite macroeconomic obstacles and decreased spending. Market-specific performance varied, with notable increases in Riverside, Phoenix, and Seattle, and decreases in major markets like New York City, Chicago, Los Angeles, and San Francisco.
In third came digital revenue, including embedded advertisements in podcasts and production fees for podcast creation. Last week, Audacy’s podcast division announced a consolidation and rebrand under a new, singular flag for 2024 as the company seeks to advance its efforts in the medium.
Other digital revenues stemmed from targeted advertising on the company’s platforms such as audacy.com and the Audacy app. Additional revenue came from network compensation, sponsorships, and event revenues, with the latter encompassing advertising space at live events and naming rights.
While Audacy posted a $1.1 billion total net loss, a 708% increase over 2022’s net loss of $140.7 million, the company was hobbled by a brutal $945.6 million impairment loss related to broadcasting licenses as operating expenses surged by 90%. In the filing, major operating expenses were identified as employee compensation, programming, promotional activities, and audience measurement services, alongside significant costs like interest and depreciation.
The cash flow reversed from a positive in 2022 to using $65.2 million in 2023 for operations, largely due to management actions related to debt restructuring, culminating in Audacy’s Chapter 11 Bankruptcy filing in January.
As for 2024’s outlook, the company witnessed a 1% revenue increase in January across Radio and Digital segments, with a similar uptick projected for the first quarter and mid-single-digit growth expected in the second quarter. Contributing to its financial health, Audacy has benefited from the sale of Broadcast Music Inc. shares, asset sales, and decreased operating expenses, leading to a 0.4% rise in Q4 Radio market revenue share.
