Q1 2022 iHeartMedia Inc Earnings Call
Second opportunities for the company to participate in exciting new and developing markets. Our recent announcement of the NFC based non fund squad media franchise and our Super League Roadblocks partnership are examples of how we think I hard can leverage our existing noncash resources to build a position in these exciting new metal versus and web.
Three areas as you may have seen in March we announced that Sam Engelbart cofounder and partner of Galaxy Digital joined our board of Directors. In addition to a wealth of operating experience Sam has expertise key relationships and a deep understanding of web three an emerging consumer tech platforms that experience coupled with Sam's background.
Media and entertainment will be uniquely valuable to the company as this space develops.
We are committed to building on the momentum of <unk> successful transformation into a data led digital driven business with leading consumer platforms like podcasting all powered by the scale and unparalleled reach of our highly profitable broadcast radio assets the largest audio sales force and the only unified AD.
Tech stack and audio advertising, we believe our first quarter performance is further evidence of the resiliency and high growth potential of our business and that we are poised for continued success in 2022 and beyond and everything we do we focus on optimizing our earnings and free cash flow. We believe this is the right approach to <unk>.
<unk> equity value for our shareholders, particularly in this current environment.
Before rich takes you through the detailed results of the first quarter I want to touch on a couple of key points. We continued our strong financial performance in the first quarter. Our first quarter consolidated revenue grew 19, 4% compared to prior year slightly exceeding the high end of our guidance range, we provided of 17% to 19%.
One of our strengths as a company is our diverse revenue base, we execute across 160 owned local markets and no single advertising category comprises more than 5% of our revenues and no single advertiser more than 2% all of which helps to mitigate pockets of ads category softness.
We generated adjusted EBITDA of $145 million for the quarter, an increase of 42% versus prior year, and we expanded our adjusted EBITDA margin by 275 basis points.
Looking at our operating segments individually, we continue to deliver industry, leading growth in our digital audio group within the digital audio group, our podcast revenues, which were up 79% versus prior year, which outperformed the overall podcast industry growth of 22%. According to Magna and our digital ex podcast revenues, which were up.
22% versus prior year, which outperformed the industry growth of 16%. According to Magna, we expect to continue to increase our share of both included in our digital X pod casting business, our streaming products third party extension products, social OTT and display advertising. This allows us to offer.
Holistic advertising solutions, leveraging our deep relationships with our consumers to tens of thousands of our long term advertisers. All of this is powered by our sales strategy of any seller anywhere can sell anything a unique <unk> capability and is enabled by the unparalleled AD Tech, we built and acquired.
This quarter digital revenues represented 25% of total company revenues compared to pre pandemic Q1, 2020, when they represented only 12% and this quarter podcasts revenues alone represented almost 10% of total company revenues clear evidence of the success of our digital transformation.
And in March According to pod track IHOP was again ranked the number one podcast publisher in the U S with more downloads than the next three largest podcast publishers combined.
Our multi platform group, which includes our broadcast radio networks and events businesses continues to demonstrate that it is also a growth engine for the company in both revenue and earnings as well as powering the creation of our new platforms. We grew multi platform group revenue by 15% year over year, even though we were operating in.
In a challenging environment and we believe that the multi platform group will continue its growth trajectory for five important reasons. One we see evidence that certain key advertising categories like auto entertainment and retail will continue their recovery to pre pandemic levels and others like pharma will continue the strong growth.
And we also see opportunity in AD platforms, as well as new AD categories and accounts like crypto currency players in sports betting.
Two according to Miller Kaplan, we continue to take share from and outpace our competitors in the radio advertising space and we expect that to continue as a meaningful vector of growth.
Three looking more broadly across the media landscape, we continue to focus on the television and digital tabs, which represent other important growth vectors for us. According to Nielsen AD supported TV reach continues to decline in the month of April It was down to just 41% reach of American consumers for the largest broadcast.
<unk> TV network, and just 24% for the largest cable TV network compared to <unk> broadcast radio audience, which again according to the Nielsen reaches 90% of Americans every month.
Broadcast radio in General and I Heart media, specifically is the most efficient and cost effective asset an advertiser can utilize to provide the missing reach than any TV centric advertising campaign at scale.
For on the digital Tam side, we continue to modernize our advertising capabilities with data and abuse solutions, including our smart audio product that makes our broadcast inventory compatible with digital planning and buying. Additionally, the recently launched <unk> audience network. The first open audio marketplace that brings together.
Broadcast podcast and streaming audience at unprecedented scale, coupled with a larger sales force and audio provides us the capabilities for our broadcast radio to further participate in the $160 billion digital Tam.
And for all advertising opportunities, we have one more unique characteristic our on air personalities. A recent engagement lab study shows that radio has twice the trust of social media and more trust and even TV and trust is key to any marketing campaign period and finally.
Within our multi platform group, we see the continued recovery of our events business, which we expect to continue to grow given our ability to build new live and virtual events and the pent up consumer and advertiser demand for these live events and experiences.
Before I turn it over to rich I want to spend a moment to give you our general outlook on the advertising marketplace and what we think its impact is on us looking at the marketplace. We believe advertising always follows the consumer and right now we see a consumer base that wants the spin to travel and the lead full lives again and importantly for us there.
Really engaged with audio yet at the same time, many sectors of the economy are experiencing obstacles rising inflation higher interest rates supply chain issues and global uncertainty even with those headwinds. We believe advertisers are choosing to build for and support returning consumer demand as evidenced by our first quarter advertising revenue.
And even with the macro concerns that balance is encouraging for us for the remainder of the year.
As we look ahead to the rest of the year, we expect our revenues to continue to grow our margin profile to continue to expand and our free cash flow to grow substantially over prior year will continue to examine our business for further efficiencies and modernizations and as we adopt new technologies. We believe we will find new ways to optimize our expense base <unk>.
<unk>, our previously announced real estate rationalization will also continue to build out capabilities like we did in Q1 for our digital sales service and new audience platforms will continue to invest in areas with high growth potential like our new advertising and data platforms, and we'll remain committed to innovation and being at the forefront of new.
<unk> and digital platforms like web three in <unk> like we've done before and pod casting audio has never been hotter and we believe our strong position as the number one audio company in America across broadcast radio podcast publishing and digital radio is our unique advantage in the media space and now rich will take you.
Through more details of our earnings Thanks, Bob as I take you through our results Youll notice that as Bob mentioned, we performed well despite external factors that have been impacting the economy.
<unk> revenues were up 19, 4% year over year slightly exceeding the high end of the revenue guidance range. We provided our direct operating expenses increased 13% for the quarter driven primarily by the significant increase in revenue, which drives higher content and profit sharing expenses third party digital cost and expense.
Related to the return of local and national large events, our SG&A expenses increased 12% for the quarter driven by increased compensation expense related to investments in key growth areas and higher sales commissions due to higher revenue in a moment I will talk more about the key investments we are making.
Our first quarter GAAP operating income was $12 3 million compared to an operating loss of $76 4 million in the prior year quarter and our first quarter. Adjusted EBITDA was $145 2 million compared to $102 2 million in the prior year quarter.
If you turn back to slide four I'll provide you additional color on the performance of our operating segments and as a note. There are additional slides in the investor presentation on our segment revenue performance.
Digital audio group revenues were up 36% year over year, and adjusted EBITDA was up 31% year over year within the digital audio group as our podcast business, whose revenues grew 79% year over year and our non podcast in digital revenues, which grew 22% year over year.
<unk> is the fastest growing area of the media industry today, but we know as a new marketplace. So Don average can be complex and confusing. So let me take a minute to go through it.
On slide 11 of the Investor deck, we provided a view of the podcast value chain to the left is the high end of the value chain podcast publishers and to the right is the low end podcast distributors podcast publishers captured the full financial benefit of the advertising revenue as an example, <unk> as the podcast industry.
<unk> largest publisher develops the content publishers across multiple distribution platforms sells the edge and captures the publishers high margin and moving down the value chain of the sales reps, who sell podcast for publishers, who lack of sales force. This is essentially an intermediary function with much lower margins than publishers.
Joy and at the low end value chain of distributors, who carry the podcasts Rss feeds.
No advertising revenue up the podcast itself and simply distribute podcast for reasons other than a direct economic benefit.
Although some parts of our company participate in another piece of the value chain. The strong financial performance of our podcast business comes from the fact that <unk> is the number one podcast publisher, although our podcast business might receive less press that some of our competitors. We do believe it is positioned to generate substantially higher financial returns and others.
Today and in the future.
We've also had questions in the past and where our podcast growth come from the last podcast content purchase. We made was discussed maybe in 2018 and since then have remained committed to developing podcast with our in house talent and with our creative and business partners. As you can see on slide 10 between March 2021 in March 2000.
22, our total podcast downloads grew from $257 million for the month to $443 million, an increase of 186 million downloads in the month, representing a 72% growth year over year in terms of mix, 65% of the $186 million increase reflects growth in existing.
<unk> podcast, we had launched more than a year ago. The other 35% of that growth in downloads reflected new podcast that we launched during the period with this organic growth strategy, we emphasize building over buying which allows us to minimize risk and deploying upfront capital and to maximize focus on leveraging our platform to <unk>.
<unk> grow audience and advertising revenues for each podcast we develop.
Looking to get it to digital audio group as a whole margins compressed slightly in the first quarter of 24, 5% down from 25, 4% in the prior year quarter. This was the result of important high return investments the company made to support the anticipated growth of the business. Let me explain our Q1 expense base included.
Approximately $12 million of incremental year over year investments to support the future growth of our business $6 million of these incremental investments are nonrecurring and 6 million of those are now part of our fixed expense base and primarily relate to scaling up our digital sales support which directly contributes to revenue expansion, we do not expect.
To make material incremental investments in this fixed cost base for the remainder of the year.
Even with these investments and our fixed cost base, we expect margin expansion to resume throughout the remainder of 2022 and remain confident that the long term full year margin profile for this business is in the mid 30% range multi platform revenues were up 15% year over year and adjusted EBITDA was up 28%.
Year over year.
Multi platform group adjusted EBITDA margins continued their improvement this quarter margins were 23% up 240 basis points compared to Q1 2021.
This margin expansion occurred with more live events than in Q1, 2021, whose margin arent as high as our broadcast assets as well as the benefit of employee tax credit reflected in our Q1 2021 results.
While political revenue in the quarter had an immaterial impact on our year over year comparisons, we expect significant political spend in the back half of the year.
Audio and media services group revenues were up 10% year over year and adjusted EBITDA was up 7% year over year on slide 20, there is a summary of our debt at quarter end, we had approximately $5 5 billion of net debt outstanding which includes a cash balance of $280 million. We also continue to improve our net debt.
To adjusted EBITDA leverage as a reminder, the terms of our debt structure includes no material maintenance covenants and there are no material debt maturities. Prior to 2026, we continue to actively monitor market conditions, and we will look to improve and optimize our capital structure as opportunities arise in the first quarter, our free cash flow was the <unk>.
Negative $75 million as.
As a reminder, Q1 has historically been our lowest free cash flow quarter for the year due to seasonally low revenues and the payout of annual cash bonuses. So as expected our Q1 free cash flow was impacted by our over target bonus and other variable compensation payments earned by the company's employees for a strong over target full.
Year 2021 results as a reminder, the company proactively eliminated almost all bonuses in 2020 as part of our Covid business response, so free cash flow in Q1, 2021 reflected no bonus payments.
Additionally, we were also impacted in Q1 by the timing of certain working capital items, specifically within payables that will reverse in Q2, when we will see the working capital benefit.
Our negative Q1 free cash flow was anticipated and we expect to generate positive free cash flow in each quarter moving forward in 2022, and we remain on track to generate a significant amount of free cash flow for the full year, which is always back half weighted.
Looking ahead to the rest of the year, we would like to provide the following specific guidance, even though there are number of significant external variables at work starting with the second quarter. We expect our Q2 2022 revenues to be up approximately 10% to 14% year over year. We are still closing the month of April but our preliminary April consolidated.
Revenues were up 8% compared to 2021.
As Bob mentioned, we believe April reflected some short term concerns around the macroeconomic environment and unusual comps from prior year, resulting from a number of COVID-19 related advertising campaigns that did not repeat in 2022. This alone drove approximately 400 basis points. So normalizing for those.
April would have increased 12% on a year over year basis.
And more importantly, we're seeing positive trends with our May and June advertising currently pacing in the mid to high teens in terms of year over year growth. We also expect to generate 225 million to 245 million of adjusted EBITDA in Q2, 2022, which would equate to year over year EBITDA growth of 24.
The 35%. This guidance includes the impact of investments, we're making to build out our digital AD support in air type platforms as well as the impact of some wage inflation. We are reaffirming that for the full year 2022, we expect to generate adjusted EBITDA in excess of the pre COVID-19 full year two.
2019 level of $1 billion.
Further for the full year in spite of being a full cash taxpayer, we expect to generate more than 2019 free cash flow of $350 million and as a reminder.
Minder in 2019, the company wasn't a full cash taxpayer and we have high capital expenditures in 2022 to complete our high ROI real estate consolidation project.
Consistent with previous guidance, we expect our capital expenditures to be between 150 and $165 million.
And finally, we continue to make significant progress towards our previously announced leverage target of approximately four times. Please note. This guidance assumes a continuation of the current U S economic environment.
We appreciate you joining our first quarter earnings call and now we will turn it over to the operator to take your questions. Thank you.
Thank you as a reminder to ask a question you may need depressed Taiwan on your telephone to withdraw your question press to Pankey again, if it would like to ask a question. Thus far there is number one on your telephone keypad. Please standby, while we compile the Q&A lasting.
Our first question comes from the line of Jessica Reif Ehrlich with.
<unk> Securities Your line is open.
Thank you a couple of questions.
And when you.
I guess, starting I don't know what else.
So can you talk about the trajectory of costs.
You talked about $12 million incremental cost.
Whats the cadence of that and how should we think about just generally cadence of comps throughout the year.
Our outlets are sort of the outlook for revenue.
Is there anything recently thinking about in terms of podcast content.
In terms of timing.
Hey, Jess it's rich thanks for the question.
No I don't think we have highlighted the $12 million of which in Q2, which we said.
Think about it as $6 million of added to the fixed cost is ongoing.
And that 6 million was one time and when you think about cost we gave guidance or directional that we expect to get back to mid <unk> margins and the digital business and I think we've been very consistent with that.
Just.
Since we broke it out as a separate segment that we expect that the business to operate excuse me are kind of in the mid <unk> range and just to put a fine point on the cost. These are costs that we put into the business because of just the tremendous growth we've had in digital.
We see that continuing to be a very strong growth, both with or without podcasting for us and so really putting a digital AD sales support and things like that to the digital business I mean, when you do that in the first quarter you have it you take a little bigger hit which is why we broke it out and emphasize what was one time and what was ongoing uptake.
Put a fine point on that to Rich's talking about fixed cost on that which is why as the revenue grows that becomes more and more efficient as we get our operating leverage and your point on podcasting as we continue.
To have a podcast margin that's greater than our overall margin.
We watch very carefully the cost on podcasting, especially whatever Rev shares, we do with anybody with partners et cetera.
And I think being as big as we are we have the luxury of being pretty picky on economic deals for broadcasting.
And we have the courage to walk away from something that sounds big but if we can make money on it we're not interested.
And then just one follow up on the revenue I mean the guidance.
The revenue growth double digit really underlying issue.
Gentlemen for April .
Yeah.
Still very strong, especially in this environment can you just give us some color on what you're seeing.
And the marketplace product lines, especially given.
There's pockets of softness and then newer areas, we're making up but you guys did their day to day, what do you think.
Yes, it's interesting it's sort of this tug of war, it's interesting to watch because you've got a consumer that is so ready for the pandemic to be over that has money wants to spend it wants to do things was to make up for all the time they couldn't do it and <unk>.
And then on the other hand, obviously, we got those macro issues, but I think the advertisers and this is probably to be expected. The smart advertisers at least are saying I've got a consumer wants to spend that got a consumer that's willing I want to advertise and attract that consumer at this moment when they're hot and I think that continues.
So if theres a tug of war I think the consumer wins that I think the advertiser follows the consumer.
And we're seeing that even in some of the areas that have been that have had supply chain constraints. What's been interesting is that a number a surprising number of advertised said I know I don't have anything to sell but I am going to keep advertising because I know it will be more expensive for me to regain that customer once I have the product that it would be to just can.
Pin you to have the relationship and the pent up demand.
We've been playing into that pretty well.
Well, yes, and just the only thing I might just add to what Bob said I think he really covered in his remarks I think if you kind of go back and look at what we built out here in this company and built out the audio Tech stack and there are some slides in the investor deck, there that people could refer to our ability now to.
Go to market, and particularly where the only reach medium over 90% of Americans, who really is no. Other alternative out there in terms of our reach medium out there. If you look at now which have been broadcast television I think the biggest broadcast is down to less than 50% I think the biggest cable networks that are like 20% so that decline overall.
All clearly works to our benefit and then couple that with the capabilities that we've built out and what's happening in terms of advertisers moving more to a cohort away from one to one to all the things we no doubt.
<unk> continues to benefit us and I think do you see the strength of our numbers and that every once while you get like a little bit of a choppy like we said in this environment like April but that's why it was so important to point out what's happening in May and June .
Encore.
Your next question comes from the line of Steve Cahall with Wells Fargo. Your line is open.
Excuse me Mr. Steve <unk> your.
Your line is open fair enough to ask a question.
Thank you I'll figure out the feedback soon.
Maybe first just to follow up on Jessica's question to dig a little deeper into the AD market could you give a little more just color commentary on maybe where youre seeing categories be rail dynamic we've heard of things like maybe <unk> and CPG has slowed down a little bit. It sounds like you are probably seeing that offset by some categories that have ticked up.
Particularly in May and June and with that I was wondering if you could tell us what percentage you have sold.
May and June that gives you some confidence in the Q2 outlook.
Well, the <unk> CPG et cetera, I don't think we've seen and I don't think we've predicted that that as an overall category as a weak category I think there may be some players that have been weekend. It but there are some that are strong as well. So we have not seen it even though automotive, which I think people had thought is weak.
Has not been.
What you would expect it to be.
From the headlines because again, you've got some dealers to say I want to maintain that relationship you have also got some tier one manufacturers.
At the highest level that are saying now is the opportunity for me to win consumers. So again I'd go back to I think that <unk> got a strong consumer even if supply isn't there and I think most advertisers recognize that.
That's an important place for them to play and they sure don't want to be absent when the consumers. There. So again I go back to if this is a tug of war I think the consumer wins and drives the advertiser.
And Steve just one item just to reiterate I think that recovered.
During our prepared remarks is again no one category for us is bigger than 5% in advertising or no. One advertiser for us is bigger than 2% of our overall advertising. So yes. There is no one category, that's driving our results either historically or going forward that we've talked about.
Yes, thanks for that and then rich maybe just to follow up on the EBITDA Guide. So you all took out a lot of cost during the pandemic I know some of that was benchmark for reinvestment.
Look at the first quarter revenue exceeded 2019, and first quarter margin was about 250 basis points below second quarter revenue also is going to be above 2019 margins or even further below where they were I know some of that is mix because digital is a little lower than multi platform, but it just seems like it's one of these stories where youre.
Making investments the investments probably makes sense internally, it's a little tougher for us on the outside to see when we see that margin start to catch back up to historical levels. So any any outlook you could give on how we can think about the margin shape in the medium term.
Sure sure and I appreciate the question and I understand from the outside.
Which is why the one thing I just and then ill go right to your question, Steve just to remind everybody. The first quarter. We do have when you look at margins.
But the law of small numbers right, it's our smallest quarter.
By far the year historically has always been our smallest cola by far for the year and so you do have a cost base that you don't get the full flow through benefit of an.
Any environment out there just due to the size of numbers.
If you look at from.
The overall margin going forward what are the reasons to your question. Yes, we are investing some money that I articulated in answers to Jessica's question into high growth businesses, but at the same time Ive said Youll continue to see margin expansion throughout the year and we absolutely expect to be back to the guidance, we've given of our mid thirties.
The digital margins on a full year basis. So he can also add I just think.
When you look at this business remember structurally we're a high operating leverage business high fixed cost business and when we start scaling and have some of these growth platforms like we've got especially as it relates to digital and podcasts.
At a certain point, we have to expand the fixed cost structure to handle that future revenue stream. The first month, we do it the first quarter. We do it is not going to be nearly as efficient as three or four quarters down down the road, but I.
I think we rich and I spend a lot of time looking at the additional money, we've got coming in and figuring out if we need to reinvest it in other places certainly the investments we made in and smart audio and in digital and probably most significantly in podcasts have alternate out to be very strong and important.
Investments for us and have an enabled the growth we're experiencing today. So again as we look at every quarter. We do look at it with that that view and and I think a pretty tough on cost.
But at the same time, we want to spend what we need to spend as Steve and let me just one additional point I'd, just add which I think hopefully will be helpful. As you think about us as a company. If you go to the midpoint for Q2 of our revenue.
Our revenue and EBITDA guidance. So just kind of go to the midpoint as the efficacy is a company that will work out somewhere between 24, and 25% overall margins as a company, which is up 400 basis points from Q2 of 2021.
Right and so we're looking at 17% today, which is up from 14% in Q1 2021, but just to kind of help everybody because I do appreciate your question think about Q2 I think if you just do that math I articulated you'll see we're getting some.
We're going to have some pretty significant margin expansion starting by the way in Q2.
Yes.
Thank you.
The next question comes from the line of Timothy Chan of Bad deal with J P. Morgan Your line is open.
Hi, Thanks for taking the question just sticking with the EBITDA and cost commentary.
Is there a little bit of mix shift kind of going on underlying here within the EBITDA guidance, perhaps the results in the first quarter.
Shouldn't be thinking about as perhaps like men's comes back and some of these other business lines and honestly as political comes on that will be very high incremental margins, but just as a quick follow up is there anything.
Just revenue mix wise that we should be casual setup as we model.
Economic recovery and reopening here.
Yes, well certainly events is a lower margin as we've said before that our overall margins. So as we bring back events, although it contributes to the bottom line. It does so at a lower margin and does it does pull back a bit and you are right about political political comes in an extraordinarily good margin and that is as you know almost.
Paul a third and fourth quarter impact, yes, I really appreciate the question because I probably should have highlighted honestly one of the first couple of questions number. This year, we've come back to live events last year designated zero.
A lot of that in terms of that does come with a low margin so really.
Appreciate that and again just to reemphasize, what I said four to five minutes ago, because I think it's worth emphasizing we are dealing when we're talking about margins here.
The smallest numbers of the year, so small numbers.
Small changes I'm, sorry have an impact on margins he is disproportionately.
I had a quick follow up you have articulated that getting back to.
Getting back to a net debt to adjusted EBITDA target of approximately four.
Where you are going to go before you start reevaluating capital return.
Decision, but given what's going on in the macro environment and your confidence in the underlying business does it make sense to perhaps.
Think about returning capital maybe before you kind of get to that four turns of leverage.
Yes, so I would think about it this way.
Always evaluating everything.
With our board of directors right and so on.
All of these decisions are ultimately.
<unk> directors decision out there, but we have to constantly keep challenging ourselves, but sure but our plan is just to be clear.
So there is no ambiguity is to continue to use our free cash flow to pay down debt until we get to approximately 401 and again youll see.
We just continue to make progress on that both in terms of generation of free cash flow and there's always another part of a leverage ratio, which is called EBITDA and then the growth of the company.
Thanks.
Again, if you would like to ask a question Press Star then the number one on your telephone keypad.
Our next question comes from the line of Dan <unk> with B Riley Securities. Your line is open.
Yes afternoon, guys I appreciate you taking the questions.
Question I keep getting on.
All the radio names is just.
People are worried about entering a recessionary environment over the next year or two and just.
I know you guys have been around this business for a while maybe just speak to what you've experienced historically as it relates to radio AD spend in that type of environment. What the puts and takes are that we should be thinking about.
In that regard.
Well first and foremost I think you'll see us.
Today.
We gave the percentages and the change in revenue mix since even 2020.
Pre pandemic.
That continues to give us I think comfort that we've got a pretty diversified revenue stream across not only broadcast radio, but we've got it across digital radio we've got it across other digital services and podcasting podcasting alone is almost 10% or I think it is about 10% of our revenue in this quarter.
And so we think that gives us a much different profile than past.
Downturns that you've seen in the economy with just the straight radio business. Additionally, I think being able to transform our broadcast radio business into a digital like inventory impressions data infused.
Use.
Data for targeting attribution.
Again allows us to play in a different world than traditionally this company or the radio business has played in.
So I think all of those are strengths in terms of us mitigating any possible.
Negative effects in any sort of downturn.
Yes, and by the way I just wanted to ask one more and I appreciate that question.
Proactively.
A lot of people who've had a chance probably not yet to really go through our investor deck.
I'd encourage you all to do so we updated it quite a bit off on the last call based on feedback and particularly in the area of digital and podcasts.
We got a number of questions about ourselves as role was a podcast or publisher and what really the differences from an economic value in terms of the publisher and I covered it on the call, but we have three or four slides in there in terms of how the value chain.
Works on podcasting, so I would encourage everyone to look at that and also we also had a number of questions on what digital X podcasts looks like and what the opportunities are whether it's a social.
Streaming audio or websites. So we also put a slide in there to kind of size the market and the Tam out there and all results. Let me go ahead and with one more thing on that though that I think audio is also hot now and audio has not been the thing has not been hot for probably 25 30 year.
Years.
So having that moment I think changes whatever trajectory might be historic.
For anyone in the audio business, including radio.
Well. Thank you. Thanks, everybody. Thanks for the questions. Thanks for taking the time to listen to the <unk> story and we're all available to answer any follow up questions. Thank you.
This concludes today's conference call. Thank you for participating you may now disconnect.
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