Q3 2021 iHeartMedia Inc Earnings Call

Good day, and thank you for standing by welcome to the I Heart media third quarter 2021 earnings call. At this time all participants are in listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star one on your telephone.

And please be advised that today's call is being recorded if.

Any forward as he says please press star zero, how do I liked your hand, the conference over to your Speaker today, Mr. Mike Mcginnis head of Investor Relations. Please go ahead.

Good afternoon, everyone and thank you for taking the time to join US on our third quarter 2021 earnings call. Joining me for today's discussion are Bob Pittman, our chairman and CEO and rich Bressler, our president and C. L O N C F O.

At the conclusion of our prepared remarks management will take your questions. Please note that in addition to our press release, we have an investor presentation that you can use to follow along with our remarks before we begin let me quickly cover the safe Harbor statements on slide two during this call we will make forward looking statements, including the current and expected impact of COVID-19.

On the company's liquidity financial position and results of operations.

These estimates are based on current expectations and assumptions that are subject to risks and uncertainties actual results could materially differ from these expectations and assumptions and these risks and uncertainties are discussed in more detail in our filings with the SEC.

During this call we will refer to certain non-GAAP financial measures reconciliations between our GAAP and non-GAAP financial measures can be found in our earnings release or in the investor presentation available on our website.

And now I'll turn the call over to Bob.

Mike and good afternoon, everybody. Thank you for joining our third quarter 2021 earnings conference call, we feel great about being able to deliver a quarter like this we think it is further evidence of the success of our company's continuing transformation data led digital and podcast focus along with the unparalleled audience reach of our broadcast radio App.

That's supported by the largest sales force and the only unified AD Tech stack and audio advertising all with the strong flywheel effect of our scale and leadership position.

Rich and I want to again acknowledge our employees, it's their ongoing commitment to innovation and creativity, that's behind our momentum and the strong results. We're announcing today and it will set the stage broke full recovery to 2019 adjusted EBITDA levels by the end of this year rich will take you through our detailed financials sharing the performance.

Of our individual business segments, and highlighting both the strong growth and potential of our digital business, including podcasting and the strong recovery and growth potential of our radio business. We hope. This gives you the information you need to accurately evaluate each of our business segments and our business as a whole.

Our business continues its strong revenue and profit growth in the third quarter, our third quarter consolidated revenue grew 25% compared to prior year, you'll recall that our guidance was an increase of 20% versus prior year when excluding political Q3 revenue increased 31% versus prior year, we generated adjusted EBITDA.

Of 230 million, which grew by 42% versus prior year, while generating $45 million of free cash flow.

Our revenue in Q3 2021 is now 98% of our revenue in Q3 2019, continuing our trend of sequential quarterly improvement compared to 2019. The multiplatform group grew Q3 revenue by 19% versus prior year, and adjusted EBITDA by 50% and the digital audio.

Group grew Q3 revenue by 77% versus prior year and adjusted EBITDA by 91% podcast revenue was up 184% versus the prior year and digital X podcast revenue was up 51% versus the prior year. Additionally, our adjusted EBITDA margin significantly expanded in the quarter.

Collecting the revenue growth the success of our previously announced savings initiatives and our continued focus on expense management, we have a high operating leverage business in Q3, 2021 the multiplatform group margins were 32% and the digital audio group margins were 33% both of which represent year over year and.

Quarterly margin expansion, turning now to the results of our two largest segments. Our IHOP media digital audio group, which includes our high growth podcasts business and the IHOP radio digital service the industry's number one digital radio service with a five times lead in digital usage over the next largest commercial broadcast company as measured by.

Triton. It also includes our websites or newsletters with their monthly audience of over 135 million unique users in the United States. According to Omniture, our digital services and programs for both national and local partners and our digital AD Tech companies are hurt radio service also has a social footprint that includes 204.

41 million fans and followers, which is approximately seven times larger than the next largest audio player. The digital audio group continues to increase its importance relative to the company's consolidated results and it delivered another strong performance in the third quarter with revenues up 77% year over year and adjusted EBITDA up 91 person.

Set year over year, making it one of the best digital performers in the marketplace. Today digital revenues are now about a third the size of our multiplatform group revenues and have more than doubled over the last five quarters, even with the expected growth of our multiplatform group. We believe digital will ultimately grow to multiplatform group revenue levels and beyond.

Due to the high growth assets of the digital audio group and the size and expected expansion of the digital advertising Tam included in the digital revenues, our podcasting revenues, which were up 184% year over year. It is important to note that our podcast business is not only profitable but has margins that are actually accretive to our overall.

Company margin, our podcast business continues to reach new levels for revenue profitability listenership and downloads. According to pod track the industry standard for third party podcast measurement. We're the number one podcast publisher with 30 million U S unique monthly listeners and 282 million global monthly <unk>.

<unk> and streams, an all time high not only do we generate an audience 1.5 times larger than the second largest publisher in this space. It was three times larger than the next largest commercial podcast or.

Also consider the scale of our podcast offerings I heart has two and a half times as many ranked shows and top 10 shows across pod tracks 19 content categories than the next largest podcast network. We also have the most shows with over a million downloads. These stats highlight the breadth and depth of our leadership.

Position and the power of the flywheel effect that comes with it and remember the economics and podcasts are with the publisher not the distributor. It is the publisher that generates the AD revenue and profit and we are the number one podcast publisher by substantial margin or non podcast digital business also continued its strong performance growing.

51% in Q3, these revenues, which include our digital audio streaming product display advertising and digital services outperformed the digital X pod casting industry growth of 34% as reported by Magna for Q3 'twenty 'twenty. One this strong outperformance is driven in part by the fact that we have the largest audio C.

Ailes force in the United States executing our strategy of any seller anywhere can sell anything supported by our unique technology, although our podcasts success understandably gets a lot of attention we want to make sure that we also highlight the strength of our nonparty casting digital businesses.

Now, let's move to the IHOP media Multiplatform group, which includes the largest broadcast radio group in America by all metrics reach audience size revenue earnings and even number of stations. It also includes our national sales organization are live and virtual events business, our networks business and our B I.

In Black information network business. The multiplatform group audience is twice the size of the next largest broadcast radio company and also has twice the audience of the largest digital music streaming service and almost five times their AD enabled audience. We are the only audio player in broadcast or digital that has broad national.

I'll reach in addition to an unparalleled local footprint the I Heart media Multiplatform group also reaches more people every month with its broadcast radio assets alone than any other media company in America and that includes both Google and Facebook Multiplatform group revenues were up 19% year over year in Q3 and were down.

Only 17% compared to 2019, continuing our sequential quarterly improvement compared to 2019. These year over year and sequential results are evidence that our multiplatform group revenues are well on their way to recovering to 2019 levels and that they will continue to grow beyond that our share of the broadcast.

Radio sector revenues continues to expand outperforming the broadcast sector as a whole as reported by Miller Kaplan, which measures. The revenue performance of select broadcast markets I'd like to give you a couple of data points about why we're so confident in the growth potential of the multi platform group and the future of broadcast radio as an advertising medium.

Let's start with a quick overview of the entire audio listening landscape and the revenue potential for each segment using Nielsen and Comscore, which are the industry standards for audience measurement when looking at the split of listening between broadcast radio and streaming digital audio broadcast gets about 75% of all listening and stream.

<unk> digital audio which includes Spotify, Apple music, Amazon music, Pandora and I Heart radio among others gets about 25% of the listening now let me translate that into advertising potential. It's important to remember that there are two sectors of audio one is comprised of music services like Apple music, Amazon music Spotify and even.

Pandora, it's where listeners go for their personal music collection, replacing Cds Lp's and music downloads consumers go to their music collection when they want to shut out the world. It has no weather or traffic no talker information no personalities and any ads that run there are perceived as interruptions of this pure music.

Experience radio on the other hand is the opposite it's social it's where people go when they want to know what's going on in the world where they go for companionship music news gossip information humor, whose heart of who's not in this environment information is key it even commercials are part of that experience commercials are native content.

<unk> radio, but their interruptions to the music collection and these differences in product appeal or why music collection services can't run anywhere near the same amount of advertising inventory is broadcast radio that combined with the listening differential means broadcast radio has a significant revenue potential advantage over streaming music.

In the past radio revenue has been limited by its lack of data and from not being of the modern advertising ecosystem that the digital Giants pioneered but that's changing and you've seen the progress we've made with both smart audio and our AD Tech platform led by Triton. The music collection services on the other hand are limited by <unk>.

Audience reach and time spent and probably more importantly advertising load possibilities and their music only environment when I analyze the advertising revenue potential both sectors I definitely prefer our hand by a lot now.

Now let me give you a few more facts about the power of broadcast radio when it comes to competing with other media formats. It might surprise you to know that consumers spend about 50% more time with broadcast radio every day than they do social media.

And broadcast radio has actually grown its number of listeners in the past 15 years digital listening has also grown but the key here is that the overall listening pie is getting bigger as new listening platforms were added this growth of the pie is driven by the strength the broadcast radio and the music collection services converting C D and music download.

Listeners into music streamers, we know that AD revenue inevitably follows consumer usage and we're seeing this happen in real time with the decline of linear television or work study released in September shows that media spending is still out of whack TV consumption has dropped to 24% of total media time, while audio consumption has grown the <unk>.

31% of total usage, however, only 9% of advertising spend goes to audio indicating that some advertisers have been slow to react to this new reality and additionally, with 40% of TV viewers classified as light TV viewers as an advertising medium T V. Now faces a significant reach GAAP broadcast radio is.

Uniquely capable of filling this gap for TV advertisers, reaching 90% of light TV viewers compared to only 50% for OTT options, our ability to address both the reach and light TV viewer gaps gives us access to the 58 billion dollar T V tab, which is further support for our confidence in the growth potential of our <unk>.

Multiplatform group revenues now let me move to our events business also included our multi platform group, where the consumer demand for our live events is strong our Q3 2021 sponsorship and events revenue were up 48% compared to prior year and this quarter includes the impact of the returned to live marquee I Heart Radio Music Festival.

Which was virtual last year ticket sales exceeded 2019 levels and the event generated over 15 billion, social impressions, which was 20 times larger than Lollapalooza.

High consumer demand for live events can also be seen in the recent success of the IHOP radio Fiesta Latina and this past weekend's live I Heart Country Festival live events are back and coming up as our 11 date live and in person I Heart Radio Jingle Ball tour in December.

I'd like to take a minute now to address a couple of relevant topics Covid of course continues to affect the country, while its human and social toll is real the advertising revenue impact appears to be behind us supply chain issues were also making headlines, but they have not had a material impact on our business and finally I also want to touch on apples recent change to their data.

And privacy policy. Some digital companies have said they are feeling a negative impact to their AD revenue as a result of apples new policy, we arent and there are several reasons why first we have our own platforms with our own first party data second we built for the future using smart audio digital like broadcast inventory around cohorts.

Which are defined target audience is like auto buyers are new parents, not one to one using cookies and mobile Ids, even with our purely digital inventory, we've stressed cohorts instead of focusing on one to one.

Third our audio AD Tech platform makes us the only audio company. They can seamlessly target and serve to the same cohorts across all platforms from podcast to digital to broadcast Big picture, we believe that cohorts of replacing one to one marketing and we think we are well positioned for the shift toward data infused ad buying.

Due to the changes in privacy restrictions and other factors, we see the world moving past one to one targeting past cookies, paas mobile Ids and toward premium platforms that are brand safe measurable and that have real scale like ours in this new world of advertising I heart is uniquely positioned to deliver targeted wilco.

Warts and audio comprised of highly engaged audiences with scale that is unparalleled in the U S. Before I turn it over to rich I want to touch upon the important announcement that we made yesterday about our multi year strategic partnership with draft Kings. This partnership is in one of the fastest growing advertising categories and will enable.

Draft Kings to use the assets of the number one audio company in sports I Heart. This partnership builds when I Hearts industry, leading audio sports assets, including the largest sports podcast network in the industry, which includes partnerships with the NFL. The M. B, a and sports podcast led by marquee talent like Colin Coward and Dan Patrick.

As well as the I Heart Sports network, which reached 75 million Americans. According to Nielsen, Our sports talk and sports betting stations and also our ongoing live coverage of professional teams on select diehard stations across the country.

We expect sports and sports betting to be a significant growth engine for us going forward and this partnership with draft Kings is further evidence of that potential.

Rich and I and the rest of the IHOP management team are excited about the tangible results I Hearts unique audio assets are delivering driven by our unparalleled consumer reach across broadcast radio digital radio and podcasting and supported by our unmatched AD Tech platform and suite of data analytic capabilities, we believe the revenue potential.

<unk> of our assets is superior to anything else in the audio sector and we're excited about using these assets to continue to drive growth into 'twenty, 'twenty, two and beyond and with that I'd like to turn it over to rich. Thanks, Bob and good afternoon, everyone as Bob laid out we delivered strong results in the third quarter, which reflect the continued success.

<unk> of our operating strategies and the power of our unique audio assets as well as improving trends in the macro economic environment, turning to slide 12 of our investor deck. Our consolidated revenues were up 25% year over year exceeding our guidance for the quarter about 20% year over year.

When excluding political revenues Q3 increased 31% year over year.

We are also extremely pleased with our continued sequential improvement against 2019 our.

Our revenue in Q3, 2021 was down only 2% from Q3 2019, improving from being down 6% in Q2, 2021, compared to 2019 and improving from being down 11% in Q1 2021 compared to two.

19.

Direct operating expenses increased 20%.

Driven primarily by the significant increase in revenue, which drives higher content of profit sharing expenses third party digital cost and expenses related to the return of local and National live events like the IHOP Radio Music Festival.

These increases were partially offset by lower employee compensation and other reductions, resulting from our significant modernization and cost reduction initiatives SG&A expenses increased 17% driven by increased employee compensation expenses, resulting primarily from higher variable bonus expense.

Based on financial performance and higher sales commissions due to higher revenue as a reminder, last year. The vast majority of our employees did not get paid a bonus and as a result, you'll see our corporate expenses increased year over year.

In addition increased head count from the investments in our fast growing digital business contributed to the increases in SG&A. These.

These increases were partially offset by the impact of our significant modernization and cost reduction initiatives and lower bad debt expense.

Our third quarter GAAP operating income was $80 1 million compared to an operating income of $39 4 million in the prior year quarter and our third quarter. Adjusted EBITDA was 230.2 million compared to 162.1 million in the prior quarter.

You turn back to slide four I'll provide additional color on the performance of our operating segments and that's note. There are additional slides in the investor presentation on our segment revenue performance Digital audio group revenues were up 77% year over year, and adjusted EBITDA was up 91% year over year within the digital.

<unk> group is our podcasting business, whose revenues grew 184% year over year and our non podcast in digital revenues, which grew 51% year over year also continuing their strong performance and importantly, we expanded our third quarter digital audio group margins to 33% a 200.

30 basis point improvement year over year, and a sequential improvement of 520 basis points from Q2, 2021, which as we mentioned last quarter were negatively impacted by a few one time expenses Multiplatform group revenues were up 19% in Q3 and continued our sequential improvement.

Third the 2019 Q3 revenues were down only 17% compared to 2019, a 390 basis point improvement from Q2, 2021, which was down 21% versus Q2, 2019, and a significant improvement compared to Q1, 2021, which was down 12.

6%, whereas Q1 2019 Q3, adjusted EBITDA margins were 32% a significant improvement from 25% adjusted EBITDA margins in Q3, 2020 and on a sequential basis margins improved 170 basis points from Q2 2021 that <unk>.

Margin improvement was achieved even though the quarter included the return to live and the associated expenses for the IHOP Radio Music Festival, which while profitable does not have the same margin profile as the rest of our multi platform group businesses.

Looking at the revenue streams within the multi platform group our broadcast revenues grew 20% year over year within the broadcast one smart audio or data infused programmatic platform Smart audio was up 43% year over year in the third quarter. As a reminder uses the same inventory as the rest of broadcast radio highly.

The value of data and AD Tech and as we continue to add new technologies and data capabilities, we expect that our smart audio product will generate revenue from the digital and TV tambs, especially considering the changes to the advertising landscape that Bob discussed earlier, our networks revenues were up 8% compared to prior year.

<unk>, which includes our premier networks, which were up 2% compared to prior year as well as T. T. W. N. The total traffic and weather network, which was up 14% compared to the prior year.

And as a reminder, our premier business was less impacted by Covid in 2020, which affects the comparison.

Our Q3, 2021 sponsorship and events revenues were up 48% compared to prior year.

As Bob mentioned this reflects the strength of the IHOP brand the high demand for live music and advertisers desire to interact with disengage and enthusiastic customer base.

The audio and media services group revenue was down 12% on a reported basis.

Excluding the impact of political revenues in this segment were up 13% year over year.

On slide 18, there was a summary of our debt at quarter end, we had approximately $5 4 billion of net debt outstanding which includes a cash balance of $369 million and these figures include the previously announced voluntary prepayment of $250 million of our term loan. We will also benefit from the concur.

Repricing of the term loan, which will have a positive impact on our interest expense on a go forward basis.

At the end of October we repurchased the full balance of our $60 million preferred stock prior to its Colgate of May one 2022, which is not included in these figures.

In doing so we realized interest savings, but more importantly, we exited the most expensive and restrictive instrument on the IHOP balance sheet, reinforcing IHOP commitment to improving our capital structure and demonstrating our confidence in our business moving forward.

As a reminder, the turns of our debt structure include no material maintenance covenants and there are no material debt maturities. Prior to 2026, we continue to actively monitor market conditions, and we'll opportunistically optimize our capital structure.

We ended Q3 2021 net debt to EBITDA leverage of 6.9 times, we remain committed to achieving our previously announced leverage target of approximately four times and we expect to continue our progress towards that goal in the third quarter, we generated $45 million of free cash flow as we.

Last quarter, the accelerated consolidation of our real estate footprint, which is part of our previously announced monetization and cost savings initiative has enabled us to sell certain redundant assets, which was partially offset our real estate initiatives gross capital expenditures free cash flow, including net proceeds from these real estate assets.

Sales would be $54 million for Q3.

As a reminder, our capital expenditures are elevated this year as a result of one time spend related to our real estate consolidation.

We continue to successfully execute against our previously announced savings initiatives as a reminder, our pre COVID-19 modernization initiatives achieved $100 million run rate target by mid 2021.

And we remain on target to replicate the majority of the previously announced 200 million dollar post Covid savings in 2021, we believe these actions coupled with our continuing revenue growth leaves us well positioned for margin expansion as evident in Q3 consolidated margins with 25.

[noise] percent up from 21% in Q2 2021, 14% in Q1, 2021, and up 300 basis points from 22% in Q3 2020.

Multi platform group margins with 32% up from 30% in Q2 2021, 21% in Q1, 2021, and up 660 basis points from 25% in Q3 2020 digital audio group margins were 33% up from 27% in Q2 2002.

21, 25% in Q1, 2021, and up 230 basis points from 30% in Q3 2020.

As we look forward to Q4 I want to provide you with the following.

<unk> momentum in our business and as a reminder, we'll get specific 2022 guidance on our fourth quarter earnings Cool I'd.

I'd like to close on the same note that Bob began on we thank our employees without whom this journey would not be possible. The communities, we serve and our business partners. We appreciate everyone. Joining a third quarter earnings call and now we will turn it over to the operator to take your questions. Thank you.

As a reminder to ask the question you will need to pass Taiwan on your telephone until we try a question fast Spanky again, if it was like to ask the question fast start the number one on your telephone keypad piece Unbuyable, we compiled again a roster.

Your first question comes from the line of Jessica Erlich from B F. A securities Carolinas open. Thanks, Hi, I have two questions. What your topics what is on Draftkings can you give us a little bit more color on the economics timing of impact and is it exclusive meaning can you.

You do other sports betting deals and can they do other radio deals and then just one pod casting it was more players coming into the market.

Uhm.

And on revenues were you up 152% and came to on revenues and obviously, we're starting a lot bigger and bigger numbers in terms of available overall growth. So I think that really proves out and you've been hearing from a stop high casting for some period of time. This strategy that were on the AD supported strategy.

As opposed to going behind.

A paywall and the way to Bob's point in terms of the flywheel effect.

Benefit we get not just on the top line on the numbers, but obviously also on the bottom line as we said because it's accreted color overall margin. So just I just wanted to remind everybody that with respect to podcasts because there was a lot of noise in the marketplace out there.

When it comes to Draftkings we.

We really can't disclose any more financial details.

What I would say is as we're all well aware. This is one of the fastest growing advertising categories, and then to partner with Draftkings with Draftkings and the number one company in audio is pretty exciting I think for for all of US and I think also the larger point because there's a lot of people, making a lot of claims out there.

But we've got the leading audio sports assets and bought articulated this during the released but just as a reminder, with the largest sports podcast network in the industry. We have I deal with the NFL, we have ideal with the N B a.

We've got the Iheart sports network, which reaches 75 million people. So yes. This deal is significant and what I think and by the way it is not exclusive.

And what I think you should think about is it to deal that touches all of our platforms and as everybody starts to think about modeling out the future and we continue the momentum into 2022 into the fourth quarter of this year and into 2022.

Looking at this should give everybody a lot of confidence in terms of projecting out our future growth.

Okay. Your next your next question comes from the line of Steve Ha-ha Famas Sparkle. Your line is open.

Thanks, Uhm, maybe first is to talk about what you're seeing in the AD market. Bob I think you are the first advertising company this quarter to say that what's going on in supply chain isn't really impacting the business and I know you had audio card in Las Vegas recently, So maybe you can just talk about what you think is going on there I mean is that folks are <unk>.

Sure and the audio or how can you maybe kind of put some context around maybe the difference in what you're seeing an AD friends versus a lot of your peers.

Steve the only thing I'd, just again just to reinforce one of the things you mentioned are all in support of our Bob Just said there is a general trend obviously in terms of audio being hot.

The second thing is I think again brings to light our multi platform because whether you've got a broadcast a network or <unk> or you know everything we're talking about a podcast being or digital or digital ex podcast and a lot of events that Bob touched upon you can work with us in so many different ways.

In terms of coming into our company and then I also think we've got the.

The technology.

The technology solution and the ability.

To meet the needs of advertisers and play in the big digital Tam and capabilities and you've heard US say this before that we didn't really have.

A year ago, or even six months ago that the full an integrated acquisition of Triton and then finally, we benefit from the diversity of our advertising base.

We have no one category that's more than 5% we have no individual avatars, that's more than 2% and that really touches upon bobs comment is sure. We have some categories that are down.

<unk> benefited greatly from side some categories that are up also so it's a total mixture.

Yes, and then maybe expanding on that could you talk about what smarty audio is running as a percentage of multi platform sales and maybe where you see that going over the next year or two.

But we haven't given out the number but obviously, we think that it's going to continue to increase we built out the whole smart audio platform. So that our broadcast radio can be bought and sold like digital can be built around the cohorts and with the Triton marketplace, which we announced which we're going to launch in.

January of next year.

We're talking about the first truly integrated audio marketplace.

Which you'll be able to buy one set of audience as cohorts on an integrated basis across podcasts.

Digital radio and.

<unk> broadcast radio using smart audio and I think that gives us not only us, but I think the audio industry, a great new tool to bring money broadly into this business and when you look at the kind of a reach radio has every advertiser today's kind of problems they need reach.

Digital doesn't reach the numbers that radio does television is declining and certainly doesn't reach what radio does and.

People at least have to be able to see or hear your commercial for it to have an impact so radio winds up I think in this pretty good position of being.

This reach enhancer for everyone well by using smart audio we're able to put it into a language and a technology that they're comfortable with and looking for us to do so I think.

As an overall percentage of our advertising on broadcast radio we look for smarter idea to be continuing decline.

And by the way, Steve and if you think about it if you look at the significant progress we continue to make on the multi platform line and where Bob just touched upon which include smart audio and we've talked about as people growing past, but getting back to 19 levels and we've talked about as a total company and we constantly get the question.

Giovanni if you get back to on the multi platform line and your confidence in getting back on the multi platform line remember what Bob just articulated our capabilities a smart audio.

Value creation for us.

Yeah.

Thank you.

Yeah.

Our last question comes from the line of Dan Day from B Riley Securities. Your line is open.

Yeah, Hi afternoon, guys. Appreciate you taking my questions just a first one.

We've talked about this it's four times leverage target for a while and you look to be getting there in the next quarter or two as long as you know at least on a forward looking basis I guess once you're there.

You know talk about the priorities for free cash flow between.

Paying a dividend buying back shares how do you weigh that against M&A opportunities.

This is a business that you see given how cyclical is can even support a dividend.

There might be a debate out there on that so I'm curious your thoughts on that.

Well I'm not sure. This won't surprise you I really appreciate the question, but I'm not going to comment on anything specifically.

<unk> your comment on when we're going to get to.

Come one we didn't deploy comment again, what we've said is our target is to get the four times leverage and I think everybody can see the significant progress we've made towards doing that and when we get in around four times Levered Juno, Bob and myself.

Changing for you know how aggressive you'd get in in terms of going after the the lives sports radio rights is that something you see is changing and getting more aggressive there we.

We we actually pretty aggressive and actually we have quite a number of major the teams carried on a radio stations play by play we have a number of big.

Sports talk radio stations.

We have a even have some specific sports are betting stations the gamblers the name of them.

Where we run them.

And then we are doing the Iheart sports network, which is sports information even on our music stations reaches about 75 million people. According to Nielsen and I think probably as the as the largest sports network. So we cover the gamut and when you go to a pod casting.

We've got the biggest sports pod casting network as well not only the leaks that rich talked about earlier, but also calling coward downpatrick, we've got a lot of big names there with the with a lot of success. So we continue to invest heavily in it.

And I think it's a great investment for us.

And by the way and one thing I would say maybe relative to all of your comments and questions were just talking about is.

Our focus here.

Israeli to drive the value of this company drive the equity value of this company. So everything you hear of Bob and I talking about.

Whether it's from an operating standpoint, or a balance sheet standpoint is put through that filter with the two of us on our board of directors.

Awesome guys I appreciate the commentary thanks for answering my questions I'll I'll turn it over and best of luck.

Well first of all if there's no other questions want to thank everybody for taking the time to hear the IHOP story.

Thank everybody for the support and Bob myself and Michael available anytime for follow up in your questions.

This concludes today's conference call. Thank you for participating human now disconnect.