Q1 2020 Earnings Call
[music].
Good morning, and welcome to enter comes first quarter 2020, <unk> earnings release Conference.
All participants will be in listen only mode. This conference is being recorded I would like to introduce your first speaker for today's call Mr., Richard Smiling, CFO and executive Vice President Sir you may begin.
Thank you Ms. C and welcome to Entercoms first quarter earnings Conference call.
Replay of this call will be available on our company website. Shortly after the conclusion of today's call an adult would like toll. So that's a replay number noted in our release.
During this call the company May make forward looking statements, which are based upon the company's current expectations and involve risks and uncertainties.
Oh, please actual results could differ materially sometimes projected these forward looking Stevens.
<unk> formation concerning factors that could cause actual results could differ materially are described in the risk factor section of the company and the reports on form 10-K.
As such risks and uncertainties, maybe update us from time to time in the company.
You see filings, we assume no obligation to update any forward looking steep statements, except as may be required by law.
During this call may reference certain non-GAAP financial measures.
Due to the Investor speech from a web site <unk> Com don't Tom Directorates, reconciliations of such mothers measures and other pro forma financial information.
I'll turn it over to David.
Great. Thanks, Rich and good morning, everybody. Thanks for joining Entercoms fourth quarter 2020 earnings call.
Want to stoplights alluding to Entercom team for their outstanding work and all the are doing to rise to the unique challenges are these unprecedented times answered the American public customers in our communities.
Let me make team has taken its toll in our business as it has such a large swapped at the American economy.
We ended the year with a great deal of optimism in high expectations coming off a solid 2019 during which we posted 2% revenue growth, 3% ex political and 10% EBIT Douglas.
Got off to a strong start to the year and we're gaining momentum across your business lines through February year to date revenues were up over 7% versus prior year significant margin expansion and strong double digit EBITDA gains.
Well, we were on track to have a great quarter in March revenues declined 22% for the month as we experienced a large number of cancellations or grocery business related to the pandemic. As a result, Q1 revenues declined 4% in EBITDA was down 19%.
Well the spot advertising in events were both down significantly reflecting the impact of cobot 19, local businesses and the cancellation of most of our March eventually.
They were however, a number of bright lights for the quarter, including or digital revenues, which grew by 41% year over year led by strong podcasting streaming audio advertising growth as well as continued strong double digit Entercom audio network growth.
We also saw healthy political advertising demand in the quarter.
On today's call I want to force discuss how cold. It 19 has impacted our business. The actions we have taken to address and mitigate the various challenges and how we're well positioned to weather depend demicks financially.
Afterwards, I will share some thoughts in the company strategic evolution in the broader rodeo landscape and how that positions us competitively both in the current environment and after we come through this and get to the other side.
But before we get to that I'd like to share a few words and how we are engaging the American public during these difficult times.
Radio was always played.
<unk> role with the American public at a time of crisis and Cobot 19 is no exception.
Radio was the country's number one reach medium and particularly in difficult times Americans rely on radio for news information guidance Reassurance Entertainment.
And it should.
And your comments the nation's leader local radio news and I'm, particularly proud of the great work or local news teams are doing across the country.
Ratings were up significantly, including a 56% increase among adults 25 54 at Kinex in Los Angeles, 63% of WBBM in Chicago, and 100% attention wins in New York.
Our news a news talk stations up in providing excellent news coverage and guidance one with the platform to engage with governors mayors and other federal state and local officials and connect them with anxious citizens.
In addition, or stations are distributing related information via regular podcasts email newsletters and other digital and social platforms, helping to keep tens of millions of Americans informed and safe.
Same time across our new stations and radio Dot Com, we're providing an array of special programming for these unusual times, including series of live concerts another unique content.
Recent data from Nielsen Mindshare Abbas in addition media research of all confirmed radio strong vitality.
For example, Nielsen reports that 83% of Americans are listening to the same or more radio than prior to the prices.
And your boss study shows a surgeon radio listenership among millennials.
33% of 18 to 24 year olds, and 40% of 25 to 34 year olds listening more to radio is a result independently.
And while as you might expect in car listenership is down for the moment as Americans have been staying more at home.
In homeless ownership is church your cross smart speakers and other connected devices. For example in March Smart speaker listeners to Entercom stations jump, 82% over the prior year, 27% over the prior month.
That's a threat of Kobin 19, first emerged or team responded quickly in vigorously to address the impact of the pandemic on her business.
Our first priority has been continues to be the health and safety of our team.
We formed a cross functional Koeppen 19 task force in late February and move rapidly to shift the vast majority of our team to work from home.
Our prior investments in technology enabled us to do so with virtually no impact in operations continue to serve our listeners customers and communities without interruption or diminished effectiveness.
I want to give a special thanks to the task force into our outstanding Engineering and I teams, who have worked tirelessly and perform wonderfully.
In late March we moved aggressively to mitigate the financial impact of Cobot 19 or revenues by implementing a comprehensive set of measures to significantly reduce expenses.
Actions included a substantial reduction in our workforce temporarily salary reductions impacting every full time, when making over $50000 per year and a number of other steps.
Moving quickly and deeply we've been able to reduce Q2 operating expenses like over 88 zero billion dollars.
In addition, we've cut a 2020 capital expenditures by over 40% and suspended our dividend.
We also took a cautionary step of drawing down our revolver in March and had $189 million in cash on hand as at March 31st.
It is important to note that we have no material debt repayments due until late 2024.
After studying a range of scenarios. We have concluded that our liquidity is sufficient to meet all of our financial and operating requirements.
Furthermore, once you get through this we intend to remain highly focused on reducing or total leverage to under four times as rapidly as possible.
Turning to business conditions as you know they have been extremely challenging over the past 60 days.
The abrupt shutdown of so much of the American economy, it's been unprecedented and has had a very significant impact on local advertisers in particular.
We've also been hit by the cancellations of sports play by play and area in which we are the industry's largest operator by a wide margin.
Although that will be offset by a pro rata reduction in rights fees.
Similarly, we have also been able to eliminate virtually all of the expenses from our various major events.
All of which had been cats.
Current business conditions have thought a bit after the tsunami of closures and cancellations that occurred in March and the first half as April.
Well there are no guarantees on the trajectory of our national recovery in these unprecedented times.
April certainly appears to be the bottom.
He has a little better than April.
In June is trending somewhat better than me.
Furthermore, the tone and tenor ever advertise your conversations has improved.
Auto was a good example of a business that has been largely idled for the past several weeks in those markets and is looking forward to getting back to work.
These advertisers have important stories to tell the public about how their businesses have returned and how they will be able to serve customers in today's world.
Radio is the perfect storytelling medium for advertisers for a number reasons.
As local beaches more people. It is minimal production cost messaging can be changed immediately and it is built on its one to one personal connection with listeners.
We had been working closely to support our customers even those that canceled advertising as their business is closed and expect to return to the airwaves as conditions allow.
This is an important time of introspection.
We're all organizations as we stepped back and thinking about how we're positioned for the future.
Entercom today, as a fundamentally different and far stronger company than we were just two and a half years ago. When we completed our merger with CBS radio.
At that time in her comments the country's fourth largest radio broadcaster with a lineup of leading high performing radio stations across the country.
We lacked scale.
And recognize that scale was essentially the transforming the company into a fully competitive strategically relevant organization strong multi platform digital assets you capabilities fully able to meet the evolving demands of our listeners and customers.
The closing of the merger, we have transformed ourselves into a leading audio based integrated media and entertainment company with outstanding positions across broadcast digital and podcasting.
Capitalizing on our scale, we watch radio dotcom, which is the fastest growing digital audio platform in the U.S.
And this past year, we acquired cadence 13, and plentiful Street studios and established Entercom as one of the country's largest podcasting publishers.
Scale has also enabled us to develop a strong.
Excuse me in emerging set of data and analytics capabilities and build out a national claimed partnership marketing solutions team.
But it isn't just the scale quantity of a rough range. It is also the premium quality of original content, both across our stations and podcasting that distinguishes the company.
As a result of these strategic actions today Entercom is one of the four strongest multi platform audio companies in the U.S. and is well positioned for the future.
We have what is arguably the best platform of local radio stations in the top 50, U.S. markets and or the number one creator of original local audio content as well as you Unleveled leader news and sports radio.
In addition, we're one of the two largest commercial podcast publishers in the U.S. with a rapidly growing business competing at scale that has grown to 28 million monthly unique listeners worldwide and more than 150 million podcast downloads promote.
We focus on premium high quality content offerings and have distinguish ourselves by the large number of high quality hits in our portfolio.
As of this week, we had 26 of the top 100 shows on the trait in short in seven of the top 25, and the Apple chart, both more than any other party.
In addition, we are the only audio company the world's would receive multiple nominations in the recently announced Peabody Awards, which are the world's most prestigious award for excellence and electronic journalism celebrating the highest quality radio TV or digital stores.
Our product lineup includes chart topping influencers like Dr. Bernie Brown interim Yang you tube sensation, David Dobek, Malcolm Gladwell pod save America, and John Meacham, New series Hook through history, which chronicles how our nation is persevered, rather great challenges, including polio in World War two.
In addition, we just launched the latest originally dramatic series winds of change in partnership with journalist and author Patrick Red Keith which debuted in the top five an apples chart.
We have high expectations for applied testing business and believe it will be an important driver of future growth generating significant symbiotic benefits to drive listenership and revenues across your various audio platforms.
I'd also like to share a few words about radio dot com.
As noted earlier video Dot com has been the fastest growing digital audio platform in the country and now delivers over 40 million users excluding podcasting.
According to Comscore or monthly average uniques grew 71% in March significantly outpacing the other leading platforms and our year to date a T. L. H is up 22%.
We continue to expand or distribution, having recently launched on the extent of the X one platform and announced an enhanced sonus relationship.
Strong audience growth is enabling significant double digit revenue gains and we look forward to continued progress in the future.
Our transformation is elevating our competitive position and enabling us to develop exclusive new media multi platform marketing programs with national brands.
For example, we recently launched a custom national marketing partnership with Dell driven principally around podcasting that also incorporated virtually every arm of our business, including broadcast radio network Radio radio Dot com, social and a custom podcast featuring Malcolm Gladwell and Michael Lewis both of whose podcasts are on our platform.
We are one of only two companies in the U.S. with the scale and capabilities to offer customers the ability to leverage all of these capabilities and it is enabling us to elevate our engagement with a number the country's leading brands. We expect programs like this to be an increasingly important driver business going forward.
In closing unfortunately after a strong start to the year Govan 19 has altered many of our hopes and plans for 2020, just as they have for everyone.
But that said we are excited about where we're headed on the other side of this.
We fully expect to emerge as a strong healthy fully competitive company positioned for success in the years ahead.
That means continuing to work vigorously to capitalize on the significant new opportunities. We have enabled through our strategic transformation into a skilled multi platform audio leader with outstanding original premium content.
It also means ensuring that we have enhanced our business model to effectively and efficiently operate under the current challenges and put ourselves in that that's possible position to drive significant bottom line growth in the post covert 90 world.
Once again I want to express my appreciation for the terrific work and versatility of our team and extend our continuing commitment to work closely with our partners and customers to get through this together to support our communities and emerge in a better places in Asia.
With that I'll turn the call over to rich.
Thanks, David and good morning, everyone and thank you for joining us.
Historically also recognizing thinking the hardworking entercom team that is rapidly we adapted to this temporary normal.
Seamlessly continue to provide vital news information into payment to our listeners and support to our advertising clients. During these unprecedented times.
As discussed by David after a strong start to the year, we experienced a sharp downturn in revenues during March.
And the extensive this decline was even more city or equal.
For the first quarter after being up over 7% February year to date, our revenues for the full quarter ended down 4% due to the impact is cool 19.
Our digital revenues for the quarter was still strong and were up 41% year over year propelled by the gross was podcasting and digital audio advertising.
Our total as reported operating expenses came in up to 85.7 million for the first quarter.
Include $4.8 million integration and restructuring costs, and a 1 million non cash impairment charge.
We also recorded a one time charge of 2.5 million for industrywide settlement, BMI and see million dollars for unusual items within it.
Excluding these one time than unusual costs and adjusting out non cash items like DNA on a same station basis or total cash operating expenses came in at 260 million were down 18.2 million or 7% versus 270.
<unk> point Threemillion in the prior year.
The savings is primarily flowing flowing through from integration cost synergies enacted during the course of last year.
As you will recall, we got previously guided to realize another $25 million. This net cost synergies during the first half since 2020.
Turning to the second quarter, given the highly disruptive uncertain economic environment, we will not be providing guidance.
Nevertheless, we are cautiously optimistic that as Steve Smith stay at home orders and business is starts reopened the advertising environment will begin to improve.
And they still a piece in detail. This belief is buttressed by the fact that the current outlook from day looks better than April and June looks better than me.
As stated by David It appears that people was the bottoms.
In addition, although we have limited visibility we believe it is reasonable to expect that we will see continued sequential improvement during the third quarter.
As GDP as GDP begins to rebuild and due to the expected resumption of live sports and our play by play coverage.
And in the fall, we still expect to benefit from a strong presidential election cycle.
Previously, we stated that we expected our political revenues would be up year over year by over 20 million.
And we expect about 60% of this revenue will run between September and election day.
At the outset of this national emergency our team responded quickly and aggressively to mitigate the impact of the downturn in revenues and to preserve liquidity.
We suspended our quarterly dividend and fully to our revolver precautionary measure.
At the end of March in $189 million, that's cash on hand.
Deferred lower priority capex projects and reduced our planned expenditures for this year by over 40%.
We are range of between 25 to 30 miles.
We executed a series of actions expected to reduce our fixed expenses by approximately 160 million over the remainder of this year, including a reduction in force that will generate about $30 million ongoing annual savings reductions in competency.
Patients will our senior management and other employees furloughs up employees, whose jobs have been hybrids disrupted by the pandemic.
Suspension of hiring travel entertainment and our form 10-K matching program.
In a significant reduction outside services and other discretionary expenses.
In addition, due to the suspension of the M.D.A. NHL seasons, and the delayed start MLP season.
We'll be able to reduce or play by play sports rights see obligations pro rata based on a number of gains cancels under virtually all of our agreements.
We will also see reductions in our variable expenses due to canceling all of our plan second quarter events and due to the decrease in revenues.
These costs, including cost of sales associates, or digital agency and podcasting product lines amount to about 20% of our revenues.
Adding it all up and looking specifically at the second quarter, we expected our cash operating expenses fixed plus variable will be down year over year by over $80 million.
Looking at other elements of our liquidity, we realize $10.8 million proceeds from the sale W.A.S. FM in Boston in April.
We now expect it to her full year cash income tax payments will be less than 10 million.
The benefit of a number of the cures act provisions, including the immediate full production for qualified improvement property.
Under the Cures Act, we also expect into for payment of about $14 million several tax.
Several people taxes until 2021 and 2022.
And given the significant decrease in LIBOR male projected full year cash interest will be nicely inside 90 million.
Turning to our outstanding debt last year, we executed a series of transactions to amend and extend our revolver and to create better cushion against her first covenant.
As a result of these transactions.
98% of our debt matures in November of 2024, one leader and our first we bring leverage at the end of the first quarter was 2.5 times compared to our covenant of four times calculated in accordance with requirements or Quinn.
Our total net leverage at the end of the first quarter was 4.9 times and our total net debt was 1.64 billion.
Our first covenant is our only maintenance covenant and is solely for the benefit of our revolving credit facility lenders or the 11 relationships things that make up our syndicate.
To evaluate whether we will be able to maintain compliance this maintenance covenant and to assess the adequacy of our liquidity. The company has won a range of scenarios bearing these soon timing and entity of the recovery.
This in depth analysis led us to conclude federal liquidity will be sufficient to weathered the storm and that we will likely be able to maintain compliance with our covenant.
With that said the company is continuously monitoring business conditions and updating its projections and we'll prolactin. Please see the covenant waiver if deemed necessary.
Such a waiver would require the approval of six of our 11th syndicate. Thanks.
The term loan lenders do not participate in this process.
With that will now go to your questions Missy.
Yes, Sir.
For the question answer session of today's call.
Ask your question. Please press star one on your phone.
Good.
Thank you.
You can.
<unk>.
First question comes from say Kim from Wolfe Research Your line is open.
Good morning, and thanks for taking the questions I have a couple.
On the cost side can you walk us through the cadence of the 150 million fixed cost savings identified, especially as it relates to the second half a year.
And for my second one is there anyway, you could quantify the impact.
Of that was Bowman Amobi MBA keep both revenue and expenses.
Yeah.
Yeah, I'll start I'll start and then be Didnt, you can pick up with the quantification of MLP.
But you know so I think we've we've tried to give you say.
No. So you can ascertain the fixed cost component of the savings into Q.
Did say that are variable expenses, only about 20% welfare relative to revenue and that our total savings in to Q six plus variable will be more than 80.
So hopefully that's enough for you to parse out making estimates of.
The fixed cost piece and then we remainder of the 150 last year.
Give up if you please.
Sure.
Yeah, I mean, if it's if you look at sports play by play, it's a or significant single digit percentage of our business, but the cost will offset the revenue loss and so with a.
Well it will wash out during the period, which there are no games.
Gotcha.
I was also hoping you could.
Parse out AD trends I guess more anecdotally.
What you are seeing across markets that have we opened and those that have not are you seeing a noticeable difference.
And business activity.
It's too early to call I would say to you that at this stage you know, it's I would imagine a lot of a stage feel like which we feel like much but it's only been a few days since we've seen that happened I would say the while there are some anecdotal or some specific instances.
I would say more broadly speaking, we've not seen any significant differentiation between those markets that are beginning to open in those that have not yet I think it's it makes sense I think advertisers or proceeding cautiously and watching how the public reaction and moving accordingly.
Set as I mentioned earlier, the tone and tenor of our conversations with customers has has definitely improved and we definitely hear a lot of them wanting to come back and a religious question of feeling out the situation as it evolves.
Gotcha. Thanks.
Thank you next question comes from Steven.
Your line.
Thanks, I was wondering it first off maybe you could just expand on the pacings a little but can you give us maybe any sort of order of magnitude of of what April was down or what may have been down. So that we can kinda model off that and what kind of sequential improvement you might be seeing a and it'd be great in there and maybe compare and contrast.
National versus local and any strong performance that you might still be seeing on the Entercom audio network.
A quick follow up thanks.
Rich you want to grapple.
Yes, I'll start I'll start there and see that.
Yeah, I really think at this point piecing.
May is you know a handful of points better than April in June is.
Significantly better than I don't know such kind of stick we'll see.
Passing shake out over these last six weeks worth it accelerates it's it's uncertain.
Yeah.
You want to pick up from there did it.
Just to speak to the categories as you might imagine local businesses are the worst impacted by this as a large number of those businesses are closed or in some shade state of disrepair at the moment National and network is significantly stronger.
In our digital and podcasting business are also quite a bit stronger.
Okay. Maybe then we can pick up on the digital side. So has that continued to kind of trend does it didn't <unk>, obviously really strong and you give us offensive, maybe just how big the the digital businesses at this point, we have a good expensive how big the pie cast businesses, but just wondering how big digital as overall, so that's kind of maybe cushioning.
What's going on on <unk>.
Yep, so our <unk> archetypical reminiscent total or greater than 10 per cent of our total weapons and and you know we're seeing continued strains.
Podcasting and digital audio advertising in particular.
Right and then maybe just the last one for me. So I think you said cash expense he'll be down around 80 million and due to we were modeling that that that's considerably less than one revenue might be down in q. too. So it's been with some you know big focus on expense man I think he just help us.
Think about whether or not you expect to be free cash flow positive maybe in Q2 or for the year overall and included in that may be what sort of after tax proceeds do you think you'll get from the station. That's you divestiture. Thanks.
Yeah, So when we think about.
The full year outlook <unk> model projects that we will be a free cash flow positive for the year then the the $10.8 million dollars and proceeds we got four W.A.S. in Boston is about $10 million after.
Tax.
Great. Thanks very much.
Thank you an X. question comes from Craig Huber from Huber Research partners to your line is okay.
Oh, thank you.
Up with some general housekeeping questions Rich was the podcast <unk> wishes shouldn't revenue from a quarter say 12 to 13 million.
And was political roughly say 3 million that's the first question.
Yeah. So you know we gave guidance at the end of 2019 that the podcast businesses Pineapple 10, kittens combines would do about $50 million rapid you. So you're you're in the ballpark and but then you know our political was.
Stronger.
In the first quarter, we did about.
$7.7 million, so from that political versus about $1 million with wrapping you then the prior year. It was a very strong.
First quarter, then as others have commented.
You know, Mike Bloomberg and others spent a lot of money.
Yeah. They certainly did I mean <unk>. Okay. That's helpful be still thinking up roughly 20 million for the year, but maybe.
Could be some upside another perhaps you're thinking.
For political you know the well, we'll see <unk> <unk> all the all the information that we see and where we are very active.
With we filter team internally, that's facing the top political agencies, we have a little level of engagement with these agencies that frankly that <unk>. The company has never had before we are working hard to bring our data and analytics capabilities to these campaigns.
So they can better target the voters you're seeking to reach and we are cautiously optimistic that we're gonna do very well in this cycle and we think you know revenues ought to be up at least $20 million you every year.
It just so it's clear on my enrich the 80 million dollar cost somebody guys are talking about in the second quarter, I think you're saying, it's a down from the first quarter absolute basis, so you're suggesting.
So they 80 million so the more than $80 million six plus variable is versus prior your actual asked report it.
<unk> Priory are okay, and then a bigger question on the cost front once we get through this.
Pandemic here that 80 million number for example, what's your general sense of how much of that cost savings you guys can hang onto obviously, the furlough peaceful come back, but how much roughly which you think about 80 million you'll hang on to.
Once you get through to step period in and I'd say that we're working really hard on that question right. Now. So you know we did we did have have a pretty sizeable reduction in force and that will deliver annual savings of $30 million. In addition, as we mentioned a little bit earlier, we do see.
Other changes, resulting from this event, that's making US we think how we conduct business. For example, if you suspect we're not going to have much travel in the future as we've had in the past we're thinking about our facilities footprint, we're working quite successfully from home and there are certain people perhaps.
That will never come back into offices or will be there only.
<unk> when they have meetings with two teams. So we are going through the process of we examining kinda all elements of our expense base and we do think that.
A much greater percentage of the total savings will be made permanent then we will provide further guidance on that percentage that extent of savings as we progress further in this year.
<unk> No day, but you want to add anything to that.
No I think I think you've covered it well.
The drift funnel too quick questions. If I could if I was just think that April was maybe down 40% of your view on the same store basis is that in the ballpark guys.
I'm sorry I.
Mr. Question is is the month of April AD revenues on the same store basis, if I was assumed that's down.
Down about 40% for just a month of April you're over years at a reasonable number to think about.
But you know it it's down a lot [laughter] and and we don't want to talk talk specifics because it's frankly.
Everyday we're looking at or or pacing everyday. We're we're talk with touching base with our leaders to get a sense of how things are progressing and it's it's pretty on certain things.
We just not going to comment at this point on the outlook for two q.
Even though just for the month of April I'm, asking about you guys can't comment on that.
Don't want to thinking Okay. My last question guys the advertising categories.
I guess for let's say the last month and a half herself.
What <unk> what is held up the best somebody mentioned national but the hit a bit more about that what categories of held up the best please.
Yeah.
Yeah, I mean, if you look if you looked across our portfolio. There are one of the benefits of our motto of course as we have a very diverse set of of of clients by the same token significant chunk of and of course, you're earn shut down mode right now the ones that are doing significantly better you're looking at.
Just pulling up my notes here.
You're looking at categories like groceries personal services insurance medical.
And a host of others of that of that Elk and obviously on the other side you have categories like restaurants and casinos.
And travel and so forth Fortunately all of which are relatively small portion at our our model.
I assume autos on on the the that last category.
Pretty bad right.
[noise] you know auto is somewhere in the middle because to some extent they have benefited from I mean first yes auto has been down quite a bit but with some green shoots I would say as we look as we look for it.
Great. Thank you guys.
[noise] Hi, Missy we move to next question or please. Thank you next question comes from his Ax silver from B.
B R. Your line is open.
Okay, Great thing we've taken a question. The first one if you have more of a kind of high level longer term wind it's just.
The last yeah bit downturn during the eight or nine obviously, all advertising took a big step down, but it seems like terrestrial radio and <unk> really recovered from 2006 out of levels just wondering.
What you can say you going to cost to investors that that makes you think you know this time when we get through the other side of best that it's it's definitely you guys are positioned you know better for recovery.
Yeah. So first it's quite a bit different today I'd say for a few reasons number one back then.
As an example, but I think typical the industry. We were one dimensional business, we had radio stations without scale.
And we had no data analytics retribution capabilities whatsoever, and so it was impossible for us to demonstrate quantifiable <unk>.
Today, that's totally different we have thousands and thousands of our customers a link to our analytics platforms.
We do lots of attributes should work.
And and <unk> attribute and platforms and we are demonstrating strong advocacy and we think that fundamental difference in terms of the conversations that we will have going forward with customers.
Secondly.
At that time, it was a little bit of a perfect storm or digital was just sitting in stride and advertisers, we're looking for where to take those dollars from radio among other category other.
Media got hit we were vulnerable today digital already commands a huge share of advertising you have many advertisers who have recognized that they may be underweighted to radio and Proctor and Gamble being a great example of a company, which felt that they were that they and.
Shifted their share back more towards traditional media like radio and we think there are others that will similarly look at their media mix and when you think about radio being the number one reach medium in the country today, which we were not then and having you know we're other media I think are more vulnerable today than they were back then I think that the landscape.
Is quite different in that we were it'd be able to play offense here and noxious defense particular at a time when audio was hot.
And then.
Also we have digital and podcasting businesses today that we didn't have back then so if an advertiser good as the conversation to digital we're there to serve that need.
And I think the last point I'd make is that we have deeper client relationships and we had before and in a world in which advertisers are looking for total audience and impressions were able I think you stack of welfare that fight and you've seen some validation or died from Jack Myers or the Myers report.
One of the most influential thought leaders in the AD World, who came out with a report recently post coded in which he called radio the last bastion of legacy media sprints and that that there were quote any compared the fortunes of radio with other legacy media favorably and argued that.
Audio would grow 24% over the next five years that incorporates screaming and podcasting, but within that he had high praise for radio and and our where with all going forward. So we.
We feel much more confident coming into this recovery then we than we did a decade ago.
Got it but that's the that DAPL response, the I mean, you you touched on it and your response that'd be Adam an X.P. said that you guys mentioned.
Third quarter of lots or that you had about 6000 advertisers connected to that platform. When I guess you know on that can we get.
Updated number and then sat down that you know whether caught some some of the conversations are having with advertisers at this point that are reaching out to them practically is this maybe an opportunity to get more traction on that <unk>.
So do your first question I don't have a recent number in front of me, but I've seen something with a seven handle circulating recently, so let's call. It somewhere north of 7000, and we're also now doing different forms of attribution that are enhancing the scope of of what we can deliver for clients as her data.
Basis continue expand so that that's exciting.
And we absolutely were having this conversation with customers and it's great that sort of data driven conversations that are absolutely influential and we have seen in terms of attrition rates of advertisers those advertisers who are on our platforms and who we can we have these kinds of conversations.
We have a much higher retention rate than across those where we don't.
Got it does very much and then Oh, yeah Guy isn't it.
That's exactly that <unk> platform is is really a tool that's focused on web lift and creative optimization D. part optimization, we have a series of other attributes and capabilities like we tell foot traffic that are also available.
Our advertisers and it's not just.
You know individual advertisers for having conversations at the who hold co level of our analytic capabilities and how we can demonstrate.
The effectiveness of radio and how our data and we have very large over 30 million set of first party data that they can use to target audience and we can provide we could wrap around that campaign attribute <unk>. So [noise] I.
I do think when they take it out.
Where we were a decade ago to now it's night and day and and we are in a much better position to lean forward and really you know tell our story with facts and figures.
Got it take you rich and then if I get to squeeze by more n. around the network growth I think David you mentioned, then you're prepared remarks I was up.
I, just heard a quarter, which I don't cause a lot better than the industry. Overall, there are reinterpreting that crackly and I can say <unk> digitally outperformance first the industry.
You are correct that we did talk about double digit growth in the first quarter I think it echoes one of the themes that we've touched on earlier, which is the quality of our offerings and.
We we work hard to differentiate ourselves on that on quality.
You see that in our leading news stations you see that in the quality of our sports stations and the premium content that we generate.
And you see that on our podcasts line up as we talked about.
And.
When it comes to our network.
Our network is a boutique network that only.
Covers our radio station, so you're dealing with strong brands in top markets and unlike some of the other networks, which offer a broader offering we're a little more be tiki and I think that gives us a little bit of any an edge here, it's enabled us to grow but but that's that I.
You know we have good competitors out there and I think network radio as you know on a broader note is you know well position for the future.
Got it very album thinking about.
Thank you.
Question comes from hobby Steiner from J.P. Morgan.
Thank you and I appreciate the time.
Two questions to maybe the first for you David.
You answer the question on the differences this time versus sort this time period versus last recession and it had the different digital competitor backdrop.
I was wondering if you can touch on how you the traditional radio and podcasting ferrying auto listenership basis.
If work from home becomes a more permanent aspect of everyday life.
I hope it doesn't but I'm just curious it's your thoughts their debt.
Sure. So we do know that driving is an important part of our listenership model, it's called 40% or so people lose the fact that almost 60 per cent comes from home listening and from other listening out in about away from home people at work.
You think about a spectrum of of pets of employment, where people listen on the job.
So we have seen that in recent weeks, we talked a little bit about ratings performance and definitely affected Nielsen has come out and talked about the disrupted moment and I've already told advertisers that basically once we come out of it.
That data is really not <unk> to a recovery and we're already seeing that in a week to week data where significant increases week to week in English and your ship and we're also as I mentioned doing really well in the home and seeing double digit growth across much speakers and so forth and you know that technology is real.
Enhance our value proposition for for listeners in a in a significant way.
All of that said I'm actually kind of bullish about what we're going in terms of listenership for a few reasons one I should should point out as an aside that the primary pureplay streamers. We're also hit in knocked down in March we've seen data from those modify and from indoor showing lower listening so again.
You're dealing with the disrupted moment in time.
But as we look forward.
People are not going to be locked up in their homes are gonna be out in about and I think at one big see change that that we may see here is that mass transit and ride sharing are going to be a hell of a lot less popular going forward for quite some time than personal vehicles and so we may see a surge in in automobile.
Ownership.
And that.
Probably leads to greater amount of driving in a greater amount of radio consumption as a result.
Really appreciate that answer and every one for your rich and thank you both for the time.
The focus now I know is clearly on the core business, which is <unk>.
Absolutely the right thing like your bonds or trading it.
Fairly large discount, particularly or shorter dated in the context of the liquidity comment I heard earlier in the call and I'm wondering if there's something.
You could or would consider doing to address that I'd be on focusing on performance and appreciates time again stay healthy. Thank you.
Thanks already and you can imagine we have a great syndicate of 11 relationship banks and and we're actively engaged in conversations with them about market conditions about opportunities.
And so we're looking at everything in our thinking about everything and but had any any decisions about perhaps how we could exploit the opportunity you're pointing to.
<unk>.
Thank you and our last question for the call comes from Davis Hebert from Wells Fargo.
Hey, guys actually my question, it's been a asked and answered but thanks for the time appreciate it.
Thank you David <unk>.
Thank you gave us and just want to thank everybody approved for tending to call in these challenging times and wish everybody all the best for staying safe and being well and afford reporting back to you all in the times ahead. Thank you.
Thank you very much bye bye.
In fact include today's conference you May disconnected. This time, thank you for joining.