Q4 2022 iHeartMedia Inc Earnings Call
Please wait the conference will begin shortly.
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Good day, everyone. My name is Kelly and I'll be your conference operator for today at this time I would like to welcome everyone to the I Heart Media Q4, 2022 earnings call. Today's call is being recorded all lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star one on your telephone keypad. If you would like to withdraw your question. Please press star one again at.
At this time I'd like to turn the conference over to Mr. Mike Mcginnis head of Investor Relations. Please go ahead Sir.
Good afternoon, everyone and thank you for taking the time to join US for our fourth quarter 2022 earnings call. Joining me for today's discussion are Bob Pittman, our chairman and CEO and rich Bressler, our president and COO and CFO at the conclusion of our prepared remarks management will take your questions. In addition to our press release.
We have an earnings presentation available on our website that you can use to follow along with our remarks.
Please note that this call may include forward looking statements regarding our financial performance and operating results. These statements are based on management's current expectations and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filings. Additionally, during this call we will.
Her to certain non-GAAP financial measures reconciliations between GAAP and non-GAAP financial measures are included in our earnings release Investor presentation, and our SEC filings, which are available in the Investor Relations section of our website and now I'll turn the call over to Bob Thanks, Mike and good afternoon everybody.
We're pleased to report another quarter of solid operating results for IHOP and consumer usage revenue and earnings growth even in this continuing challenging and uncertain economic environment. We're continuing our transformation of this company before I take you through the fourth quarter highlights I want to take a step back and talk about the year. We've just had a.
Reminder, 20 twenty-two began strong for us and was poised to be robust Reinhart. However, as we're all aware a number of macroeconomic factors led to increased volatility and uncertainty, which moderated our 2022 results. Despite these headwinds we continued to innovate and find new ways to engage with our consumers and advertising.
Partners, we remain committed to evolving our business and we maintained our focus on expense management and our financials reflect these commitments the fourth quarter was our best quarter for revenue and adjusted EBITDA ever and on a full year basis in 2022 we generated the highest revenue and second highest adjusted EBITDA and free cash flow.
A year and I Hearts history.
We continue to make strong progress in our transformation of IHOP into a true multiplatform audio company driven by innovation supported by data and technology empowered by the largest sales force in audio executing our unique multiplatform go to market strategy of any seller anywhere can sell anything I Hart's relationship.
The consumer has never been stronger and consumers are now spending 30% of their daily media time with audio and yet audio only captures 9% of total advertising spend not only do we believe that the allocation of advertising revenue to audio will increase but because our broadcast radio assets alone reached 90% of consumers in the United States each.
Month, which by the way is now more than twice the reach of the largest television network four times to reach the largest AD enabled streaming music audio service and two and a half times. The reach of the next largest broadcast radio company. We also expect to continue to take an increasing share of audio advertising spend driven in part by our large and well trained.
Sales force.
All our digital assets continue to grow the most traditional of our platforms. Our broadcast radio assets are importantly, performing much better than they did during previous advertising downturns to put this in perspective in 'twenty 'twenty, our multiplatform group revenues declined 28%, but they were up 4% for the full year in 2022.
And in 2020 at the beginning of the pandemic digital accounted for 12% of the company's revenues and today, it's over 25% and we expect that percentage to continue to grow significantly over the long term even as broadcast radio grows as well broadcast radio with its unparalleled reach will also continue to power the development of <unk>.
New platforms and opportunities for us like our high growth digital assets. This includes the IHOP radio App, our podcast business, our new meta versus platform and our leading positions on all major social media platforms with our nearly 300 million followers, which is seven times larger than the next largest audio company and which is.
<unk>, our most recent successful expansion into Tictoc, where a follower count grew 300% in 2022 to 27 million Tictoc users with twice as many user engagements as the next largest audio company.
We remain committed to meeting our listeners wherever they are with the products and services, they expect and to effectively monetizing those relationships, which is reflected in the diversity of our products and platforms as well as our early adoption of new technologies like AI, which we began rolling out in 'twenty 'twenty to enhance our music programming and scheduling.
By providing real time evaluation of listener sentiment and predicting audience engagement and reactions, we give our programmers a unique advantage and are able to deliver the best experience possible to our listeners stations, where we rolled out this proprietary system saw a 15% increase year over year and the average quarter hour share of adults 18 to 49.
This validates our ability to identify an opportunity [noise] design, the strategy and executed successfully and often as we did here using new technology as those who've been following this company for some time know we're constantly evaluating our cost structure and technology usage looking for ways to make our operations more efficient.
Illustrate this point back in 'twenty 'twenty before the pandemic began we announced changes we were making to prepare I heart for the future we began to significantly reduce our real estate footprint re imagine the structure of our sales force and go to market strategy restructured some of our operational organizations and identified new key ways that new technology.
<unk> can make us both more efficient and better at our jobs specifically since the beginning of 'twenty 'twenty, we've reduced our office space by half and we have reduced our U S workforce by approximately 20%. This clearly illustrates the progress we're making to create a more efficient and effective organization over the past three.
Years, we've completed savings programs of approximately $250 million and on our third quarter 2022 earnings call, we announced a new cost program that will generate 75 million in annualized savings, which we will benefit from in 2023 in light of the ongoing economic uncertainty and supported by our focus on free cash.
Cash flow generation, we're also reducing our in your capital expenditures to below 20 twenty-two levels with that backdrop, let me take you through some of the highlights of our performance in the fourth quarter consolidated revenues grew 6% compared to the prior year at the high end of the guidance range, we provided of up approximately 2% to six person.
We generated adjusted EBITDA of 316 million for the quarter in the middle of the guidance range, we provided of $305 million to $325 million and our Q4 adjusted EBITDA margins were 28% or 34 basis point improvement versus prior year and as I mentioned earlier, our fourth quarter.
Revenue and adjusted EBITDA results were record highs for any quarter in the company's history.
Turning to our individual operating segments in the fourth quarter, our digital audio group revenues increased 10% versus prior year adjusted EBITDA was flat versus prior year and adjusted EBITDA margins were 33% within the digital audio group, our podcast revenues, which grew 17% versus prior year and our digital expire.
<unk> revenues, which grew 7% versus prior year. The macroeconomic conditions are certainly impacting the entire advertising marketplace and even the podcast industry is not immune to some effects of the advertising slowdown.
For additional context, our podcasts business was also up against some very strong prior year comps as a reminder, Q4 2021 revenues were up 130% year over year in.
In January I Heart was again ranked the number one podcast publisher in the U S with more monthly downloads than the next two largest podcast publishers combined according to pod track the pie casting industry remains the fastest growing mass reach medium. According to a recent Edison survey in 2022 total daily podcast.
Listeners grew by 20% with podcasting now reaching over 60% of Americans and marketers are following their customers with a recent advertiser perception poll, revealing that marketers plan to continue to increase their pod casting spending in 'twenty twenty-three even in a slow advertising market continuing to look at the podcast.
<unk> marketplace as a whole the industry seems to be going through a transition towards more rational behaviors in terms of content expenditures of trim. We've discussed with you before we've deliberately avoided engaging at uneconomic behavior and pod casting and we think this new market behavior will have a positive ripple effect across the entire industry, including us.
I hear media also has a depth of digital assets beyond just our high profile I heart radio app or streaming services and podcasting, we have over 160 million unique visitors a month across a network of 3000 websites for our national shows local broadcast stations are on air talent Influencers and podcast titles.
[noise] Influencers continue to be hot in the advertising marketplace and our Influencers are an important I hard asset and in 2022 our top 50 Influencers reached two out of three Americans every month and our eye heartland destinations in the metabolic specifically on roadblocks and fortnite lead the IND.
History in terms of engagement, but almost 10 million visits and a recent fallout boy concert we hosted a roadblocks generated three times the concurrent audience of competing events considering the macroeconomic challenges in the current environment, We think our digital and podcasts businesses performed well in the fourth quarter, but we also see concrete ways to.
Improve the performance going forward.
The digital audio group as growth engine for us and comprises a range of growth challenged with very attractive margins and we're constantly looking for adjacent growth opportunities when they look attractive in that spirit. During Q4, we increased our emphasis through sales initiatives and commission structures on targeting certain incremental revenue streams and <unk>.
Respect, we believe those decisions had a negative impact on our revenue growth and margin for the quarter. We've learned from this Q4 experience and have already initiated steps to realign our sales force's focus back to higher margin digital revenue opportunities. We believe we will start seeing the positive impact of those adjustments in both revenue growth and margins as early as Q2.
Let's turn now to our Multiplatform group, which includes our broadcast radio networks and events business in the fourth quarter revenues were up 1% versus prior year, adjusted EBIT was down 8% versus prior year and our adjusted EBITDA margins were 31.4%. Our multiplatform group has again demonstrated its resiliency during this challenge.
King economic climate generating adjusted EBITDA margins in the low thirties, which we expect to expand as the economy recovers and our revenue follows our broadcast radio assets alone reach more people than any other media company in the U S. This is important because reaches at the very core of marketing market is convert a certain percentage of people who here.
Their messages and the customers therefore, the more people they can reach with their message the more customers. They can acquire so our unparalleled consumer reach is a compelling benefit to advertisers and it is also a huge advantage for us as we've used it to build our own new high growth businesses. The advertising World also continues to move to.
Ward unified media buying and planning considering all media together rather than in silos. How this plays out is unique for each agency and advertiser, but given the broadcast radio has traditionally been under bought relative to the reach and scale. It offers we think I Hearts broadcast radio will be a beneficiary of the shift to data driven play.
<unk> algorithms, making media allocation decisions instead of human beings that both personal and historical biases before I turn it over to rich I wanted to leave you with this final thought.
We're taking all appropriate actions and executing with agility to navigate the current macro economic environment, an environment that rich and I and our broader leadership team are no strangers to given our long history of leading organizations at the same time, we remain steadfast and continuing to transform and position I heart to take advantage.
Of the coming economic recovery and the upturn in advertising, we are laser focused on deploying our strong cash flow to improve our balance sheet and invest in growth and leveraging our core strengths, including our scale deep industry expertise operational prowess and seasoned sales force to deliver revenue and <unk>.
<unk> growth as well as shareholder returns over the long term and now I'll turn it over to rich thanks, Bob.
I take you through our results you'll notice that as Bob mentioned, we performed well despite the increasingly challenging macroeconomic environment. Our Q4 2022 consolidated revenues were up approximately 6% year over year at the high end of the guidance range, we provided of up approximately two 6%.
Our direct operating expenses increased 7% for the quarter driven primarily by the increase in revenue, which drives higher content and profit sharing expenses third party digital costs and expenses related to the timing and return of local and National live events, our SG&A expenses increased 4% for the quarter driven primarily by.
Investments in key high growth areas and expenses related to the timing of return of local and national live events, partially offset by lower bonus expense compared to or over target bonus performance in the prior year.
Our fourth quarter GAAP operating income was 173 million compared to an operating income of 123 million in the prior year quarter, our fourth quarter, adjusted EBITDA was $316 million compared to 294 million in the prior year quarter at the middle of the guidance range. We provided of 205 to 225 million.
Turning now to the performance of our operating segments and as a reminder, there are slides in the earnings presentation on our segment revenue performance in.
In the fourth quarter digital audio group revenues rose, 10% year over year, while adjusted EBITDA was flat and our Q4 margins were 33% within the digital audio group or our podcast and revenues, which grew 17% year over year and our non podcasting digital revenues, which grew 7% year over year.
To reiterate what Bob said in his remarks about our Q4 2022 performance first we.
We are compared to an exceptionally strong prior year quarter. When Q4, 2021 podcast and revenues were up 130% year over year and second we were impacted by cost of targeting certain revenue streams, which retrospect had a negative impact on our overall revenue growth and margin for the quarter.
We have learned from this experience have initiated steps to realign our sales force focus back on high margin digital revenue opportunities.
Multiplatform group revenues were up 1% year over year, and adjusted EBITDA was down 7.5% year over year, excluding the impact of political multiplatform group revenues were down 2.8% year over year.
Multiplatform group adjusted EBITDA margins were 31.4% compared to 34, 2% in Q4 2021, the increase in Multiplatform group expenses was primarily driven by the timing of costs associated with live events.
Audio and media services group revenues were up 44% year over year and adjusted EBITDA was up 149% year over year. These increases were primarily attributable to radio and television political revenues within our cat business at quarter end, we had approximately $5 $1 billion of net debt outstanding.
Our total liquidity is $761 million, which includes a cash balance of 336 million.
In the fourth quarter, we reduced our net debt by 180 million. We finished 2022 with a net debt to adjusted EBITDA ratio of 5.3 times and remain committed to our long term goal of approximately four times as.
As highlighted on past calls, we have no material maintenance covenants and no debt maturities until 2026 and the current macro environment. This type of debt profile positions us to both be resilient and opportunistic and responding to that market developments in Q4, we proactively repurchased 100.
Third and $41 million of the principal balance of our eight and three eighths senior unsecured notes, bringing our full year 2022 repurchase total to $330 million, resulting in annualized interest savings of approximately $28 million, we were able to repurchase these notes in the market at a meaningful.
Count to their par value generating both earnings and free cash flow accretion, we will continually monitor market conditions and will look to further improve and optimize our capital structure as opportunities arise in the fourth quarter, we generated $165 million of free cash flow slightly below the target.
That we discussed on our last quarter earnings call due to the timing of working capital items. This implies a full year free cash flow yield in the high 20% range, our cash balance was $336 million and our total available liquidity of $761 million as Bob highlighted we made folk.
Just on free cash flow generation and are committed to utilizing that cash in a manner that creates the most value for our shareholders.
Turning now to our outlook on Q1 as.
As we touched on 2022 was a year of macro economic uncertainty, which is continuing into 2023 to that end I want to provide some insights into what we're seeing in Q1 as well as some high level thoughts about cash and liquidity for the full year.
I also want to remind you that Q1 2022 was a strong quarter for us and that the economic uncertainty last year didn't really affect our business until the very end good quarter, which is impacting our Q1 2023 comps with that in mind, we expect our Q1 2023 revenues to be down.
Single digits year over year, our January revenues were down 1% year over year, turning to adjusted EBITDA for Q1, 2023, we expect to generate adjusted EBITDA in the range of $80 million to $90 million.
Let me provide some assumptions regarding cash we expect our full year capital expenditures to be between 101 hundred $20 million a significant year over year reduction from $161 million in 2022, driven by our deliberate reduction of capital outlay in times of economic uncertainty we expect.
Lower cash restructuring expenses as our savings initiatives are fully implemented we will be a full cash taxpayer in 2020 through it we.
We will continue to further opportunistically improve our capital structure as the market allows and while our interest expense has been reduced by a debt repurchase program. We are impacted by the high interest rate environment as approximately 40% of our debt is floating.
Want to leave you with this IHOP has unparalleled assets that have proven their resiliency to economic downturns like the warmer and now we continue to make solid progress on our transformation, which enables us top rate to a softer macroeconomic environment better than ever before as we navigate these uncertain economic.
MC conditions, we remain committed to driving shareholder value through a rigorous allocation of capital identifying additional cost savings opportunities utilizing new technologies to expand our product offerings and improving our operational efficiency and we believe the strength of our assets will become even more apparent as the edge.
Economic environment and the advertising sector recovers in closing I'd like to thank the entire IR team, who continue to deliver for our communities advertisers and our shareholders now we will turn it over to the operator to take your questions. Thank you.
Thank you as a reminder, at this time if you do have a question that will be star one on your telephone we'll hear first today from Stephen Cahill with Wells Fargo.
Thanks, maybe just rich could you provide a little more context in the Q1 EBITDA guide.
It would kind of surprisingly low number and it was lower than you did in <unk> 'twenty one even so I know 22 was a really strong quarter, but is there anything in the Opex line are you, making any significant investments there just because the the top line seems a little more what we expected but that was the bigger surprise, so any color would be great.
Steve Thanks for your question.
Not.
Not really any additional insight just as a reminder, we.
We do always deal with the law of small numbers.
Cause.
The fixed question nature of certain parts of our business and and just a reminder, our Q1.
You compare it to.
Not just the strength of last year, but just the absolute number size.
As always I don't know.
About significantly small smaller than the fourth quarter of the year, just starting competitive out there so really nothing more than that I think also I would just add one thing that we did reference is that in.
Q4, we sell.
Self inflicted trying to push some new revenue streams.
Some of our commission and sales plans and I think it had a negative impact on the product mix within Dag.
We're expecting that to continue into Q1, and probably write stuff by Q2.
Great and then just on what Youre seeing in the AD market. So you know a lot of what we've heard is that December was kind of bad across the market and then it's been a little better sense. I think you had January down 1%, but your guidance for Q1 is down a little more than that so are you expecting a deterioration or is that something related to.
Do some of those changes and product strategy. Bob you were just talking about or how else should we read into that.
Yes, I think on revenue I think it is sort of the anomaly of Q1. If you look at most advertisers Q1, there were sales quarter of the year. It is historically significantly as rich mentioned.
Lower revenue than Q4 for example, Q2 and Q3, so I think in periods of uncertainty what we find is advertisers holding back.
And taking a look at what the year might be if they've got an opportunity to hold back its certainly in Q1 and through the year last year, we saw that the big advertisers were stronger than the small advertisers in Q1 that has reversed it which makes sense.
I agree with the thesis we have.
When your brand Advertiser, you can actually pull back more than you can if you're an advertiser who is advertising directly to get sales at that moment and I think that's what we're seeing in Q1 and again.
We continue to watch it but I think it's a function primarily of uncertainty and people holding back spend to see what happens.
Stephen I would just add one last point, which you didn't ask but just.
In terms of funding that delay the business of five pointed out.
Writing on on digital wide, but as you think about a model we have going forward, we still feel exactly the same from a margin profile that we felt about the business decision.
Q4, we had I think we had a 52% conversion rate.
Or into free cash flow.
And then so from a long term product.
As you go forward and model out kind of that mid single digit modeling for.
Margins of the digital audio emergence for EBITDA is still something we're very comfortable.
And then and maybe just related to that on podcast thing. It does seem like there's been a real cooling off in some of the higher priced.
Content deals out there do you feel like that gives us some opportunity to be more aggressive in podcast thing or does it change your investment strategy at all now that you know the market's kind of rationalized to the point that you were always kind of applying for with it. Thanks.
Yeah. Thank you and you've hit the nail on the head, yes, I do think there is an opportunity there I think it will have a positive ripple effect through the podcast business.
There were people, who thought they were buying share, but we're really buying losses and I think.
Certain rationality, that's return which is good for us obviously with our size and scale. If we're really betting on product based on economics, we're in very good shape.
Anything further Mr. Cahill.
Nope I'm all set thank you. Thank you. Thank you.
Well hear next from Dan <unk> with B Riley Securities.
Yeah, Hey can you guys I appreciate you taking the questions maybe.
Maybe just to go back to podcasting just anything you can provide so far in 2023 in terms of.
Pricing volume and impression growth anything that you can just anchor us in our models as we set out for 2023 on the podcast in line. Thanks.
Yes, we havent.
Given any of that guidance, but again I would say if you look at the revenue streams and media pie casting appears to be the strongest of the mall, but certainly is not immune from the downdraft of oven add slowdown.
The only thing that I might add to that.
And you've heard us say this before about about.
All of the platforms, we have in all the businesses.
It's advertising revenue always falls to consumer and always post consumer engagement I think Bob noted.
That project, which is over 60% of Americans and the fundamental aspects of podcasts in terms of the amount of time people spend.
The larger advertisers that are coming to podcast here, which is really starting to happen in the last couple of years now none of those have changed in our mind and we.
To be very optimistic, but it really starts with consumer occasion, which is rock solid.
Got it and then on the other line within digital.
It will expand testing any like.
I know, there's some like social media reselling in Nash and third party extension just wondering how those are doing just given that kind of volatility we've seen in social media lands on the last few quarters.
And whether that.
7% growth, whether theres, a big difference between like the.
The radio streaming inventory sold versus the other buckets. Thanks.
We haven't given that breakout so I don't want to do it here, but I will say I'll refer back to we did goes a couple of lower margin aspects of it by accident.
Didn't intend to do it at the expense of the others and we are reconfiguring, our sales priorities and commissions to rectify that going forward.
Okay. That's all I've got guys. Thanks for the time.
Great. Thanks, I appreciate it.
And once again for questions that is star one at this time, we will move next to Jim Goss with Barrington.
Thanks couple of questions about.
Political advertising or I guess the.
The categories in which they showed up.
But absent those and the North platform group, primarily broadcast radio I presume there tends not to be a louder displacement I'm wondering what accounted for the.
The slide in AD revenues than in that category and were there any categories that were to blame.
Well I think you just saw the AD slowdown continuing into Q4 and slowing down enough that the political advertising could not offset it the whole way.
Okay and.
Other area, the Audi audio and media services group I gather it's mostly cats.
Which as Martin rationale.
So.
It seems like.
Television.
Hey, Jim.
Okay.
But just as a quick reminder, we benefited greatly from.
Political advertising on the TV side.
Can you already both radio and TV.
Okay, so as the television side okay.
Also in what do you think is a sustainable growth rate in pad casino. We has the sort of the surge there was a little more modest now.
Is the 17% growth you had something that is more normal or whether it fade from there as the category of mature somewhat.
Yes, I don't think we see the category maturing, but I do think it is.
As we said its high casting is not immune from the slowdown, but we do fully expect podcasts and continue to be the highest growth sector of the media business and looking at the.
Usage from consumers I think is probably the lead for us what Rich's earlier said.
Advertising does follow consumers.
And I think thats, a very positive trends.
Okay and last thing.
Your Tictac exposure could you talk about that a little bit more.
Discuss whether there are risks that we ought to be concerned about.
Well I don't think we've got a lot of revenue coming on Tic Toc, we use it primarily as a marketing tool for us and as you know take talks been Super Hot.
But we've got roughly 300 million social followers about 27 million tick tock followers.
So we're willing to go and able to go and have a platform to go in whatever direction. The consumer goes. So if there is any limitations on the tick tock wherever the consumers go will be will follow them.
And Jim just I'll just give you one.
To point for context for Bob number of between 2 million social followers.
It's about seven times larger than the next largest audio service Spotify there.
Okay.
Thank you very much appreciate it.
Thank you.
And from Jpmorgan, we'll hear next from Sebastiano Petti.
Yes.
Hi, guys. Thanks for taking the question just wanted to kind of go back to the EBITDA margin guidance.
EBITDA guide for the first quarter.
If you.
It assumes a call it at the midpoint, 11% implied EBITDA margin, which is below.
So the revenue flow through.
You were just doing mid point decline and higher than what you had in 2000 22019, yes, everything besides 2022, but the implied EBITDA margin of 11% is also below.
As below prior years, excluding the pandemic period, so anything to unpack there is there anything going on at the segment level that we should perhaps be thinking about.
As well.
Okay.
Highlighted Bob mentioned that we highlighted.
The flow through in terms of I think the word five years was kind of goosing.
Some of it on.
Less high margin businesses in Q4.
I think we've talked about that and we've rectified that but we won't fully worked through we got until you get to Q2 and then when you have the advertising headwinds that we had talked about as we turn the page into 2023 and the continued uncertainty in the environment and I think as you know as you all know about.
Multiplatform business in particular.
All high margin businesses, but that's like 75% to 80% incremental flow through margin, but at the same time.
When you don't have as robust revenue number there as we've talked about in Q1, you did hit on the downside of a margin, but at the same time and I was just going to back to a comment that Bob made not just commenting on the results here, but also that we're in addition to being focused on cost and taking a question generating cash flow want to make sure that we're very well.
Our position as the economy starts to come back stronger.
Advertising revenue starts to come back strongly that are captured yes look I think Q1 is simply youre seeing operating leverage.
And Youre seeing you know when revenue goes down the operating leverage by chip.
When things go up it's your friend and.
We have hyper focused the company on being ready for the recovery, making sure we're well prepared for it and can take full advantage of it and at that point, we're going to see the operating leverage again as our helper.
And then could you, perhaps unpack a little bit some of the.
Sure.
Some of these new business wins that you've had have delved into this.
Yes.
Just put it as high margin growth businesses.
Richard you talked about realigning the sales force I mean anything that we should be thinking about.
As you know.
That a little bit.
Sure and the dye group, we've got a number of digital businesses, which some have pretty high margins somewhat not ridiculously low, but much lower margins and for us.
<unk> balance is to make sure whatever we're doing at low margin is incremental to the higher margin business. We don't want a flow of revenue going from high margin low margin and we may have overdone, it a bit trying to do some of these.
Lower margin businesses, which we thought could all be incremental they turned out not to be.
Our lesson and we've adjusted.
And Sebastian just a quarter, but I just wanted to.
Come back just what I said I think in response to when Steve.
A couple of those questions just again as.
We wanted to obviously share be fully transparent GPS are the steps we made some missteps someday the changes that we've made but.
As you think about modeling out.
We still are committed to believe that the digital audio group as of mid Thirty's.
No.
EBITDA margin business.
And just a quick follow up was this more pronounced.
And this summer.
Some of these not high margin businesses was that more pronounced perhaps in the fourth quarter or is it something thats, perhaps been building just.
We're kind of thinking about extrapolating into the go forward in terms of 'twenty three and beyond.
We really think the impact was in Q4, and we think it will continue into Q1, we think we will have a rebalanced by Q2.
Thanks for the time.
Okay, well, thank you very much for joining us today and thanks for all your support thanks, and Mike and the team are available also.
No questions as of the other night.
And that does conclude today's conference again, thank you all for joining us and you may now disconnect.
Please wait the conference will begin shortly.
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