Q2 2023 iHeartMedia Inc Earnings Call
Good morning, My name is Rob and I'll be your conference operator today.
I would like to welcome everyone to the I hurt media second quarter 2023 earnings Conference call. 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 followed by the number one on your telephone keypad, if you would like to withdraw your.
Question again press Star one thank you Mike Mcginnis head of Investor Relations you May begin your conference.
Good morning, everyone and thank you for taking the time to join US for our second quarter 2023 earnings call. Joining me for today's discussion are Bob Pittman, our chairman and CEO and rich Bressler, our president and COO and CFO .
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.
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 Companys SEC filings position.
Additionally, during the call we will refer to certain non-GAAP financial measures reconciliations between GAAP and non-GAAP financial measures are included in our earnings release earnings presentation, and our SEC filings, which are available in the Investor Relations section of our website and now I will turn the call over to Bob.
Thanks, Mike and good morning, everyone. We're pleased to report that our second quarter 2023 results were in line with our previously provided adjusted EBITDA and revenue guidance ranges the signs of improvement in the advertising marketplace that we called out on our first quarter call have continued and we're seeing indications of improving macroeconomic trends, which we expect to have a.
A positive impact on us in the second half of the year and similar to what you probably heard from others. We expect most of that positive impact in Q4, while we're carefully monitoring these improving macroeconomic conditions. We're also continuing our expense management work. These actions and the work we've done over the past couple of years to make our organization more efficient have.
Loud us to be resilient. During this recent period of advertising softness these.
These actions have also freed up additional capital that enabled us to continue reducing our highest cost debt at advantageous prices, while also continuing to reinvest in our high growth areas like podcasting the.
And the continued positive performance of our digital audio group led by our podcast business and the significantly improved relative performance of our multi platform group. During this soft advertising period compared to the last downturn in 2020 are encouraging metrics for us. Additionally, while the advertising environment remains challenging in the short term we note.
That there are some opportunities that I heard is uniquely positioned to take advantage of linear Tv's viewership continues its precipitous decline the Hollywood labor strikes have already had an impact on content distribution and will likely have an impact on future content creation, both of which could have a negative impact on video audiences and there is an ongoing.
Well publicized upheaval and social media platforms.
These opportunities along with the important and first of its kind dentsu study about the audio sector that just came out last week clearly demonstrate the unique and powerful impact of audio, including both podcasting and radio and creates maybe the best environment, We've had to make our case to advertisers and their agencies about the power and value of audio Midi.
With radio and podcasting at the forefront with that backdrop, let me take you through some key financial results of the quarter and the second quarter, we generated adjusted EBITDA of $191 million slightly above the midpoint of the guidance range, we provided of $180 million to $200 million and more than double the adjusted EBITDA we generate.
In the first quarter, our second quarter adjusted EBITDA was down 19, 4% year over year, which is a significant improvement from Q1, which was down 35, 7% year over year, our consolidated revenues for the quarter were down three 6% compared to the prior year quarter, a little better than the guidance, we provided of down mid.
Single digits and excluding the impact of political our consolidated revenues were down one 8%.
Turning now to our individual operating segments in the second quarter. Our digital audio group revenues were 261 billion up three 3% versus prior year. Adjusted EBITDA was 85 million up seven 2% versus prior year and our digital audio group adjusted EBITDA margins were 32, 4%.
We believe the digital audio groups adjusted EBITDA performance benefited from the strategic fixed cost investments. We've made in the past few quarters. This quarter also illustrates the strong flow through characteristics of the business as our Q2 digital audio group margins expanded 120 basis points year over year and were 820 basis points better than.
In the first quarter.
Within the digital audio group, our podcast revenues even in this slower AD market grew 13% versus prior year further evidence of our leadership position in the industry and illustrating how powerful podcast thing is as both a short term and long term growth engine for the company our digital ex podcast revenues were down one 6%.
Prior year with the prior year benefiting from non returning COVID-19 related to advertising spend we expect our digital ex podcasting revenues to be back to positive growth in the third quarter and the second quarter podcast thing was by far the best performing segment of the advertising marketplace and we continue to have the largest podcast audience reach in the United States.
In June <unk> was once 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 our leadership position in <unk> is in part the result of the unparalleled scale of our complete audio platform that we used to promote our shows across our digital.
<unk> and across our broadcast assets, which have three times the consumer reach of the largest TV network and twice the reach of the next largest audio service.
Great example of this is the story of paper Ghost one of our true crime podcasts that we recently began to promote extensively on our broadcast radio stations within two weeks its downloads jumped by more than 100% and it reached the top 10 in apples podcast true crime charts, our leadership position with podcast listeners is also driven by the <unk>.
Breadth and depth of the content, we create we're the only publisher with podcast ranked in all 19 of pod tracks content categories, and we have the most top 10 shows of any publisher as well and as the pie casting industry at large continues to embrace more rational content cost I heart as the leading publishers in the industry well.
We continue to benefit the overall podcasting industry has also reached a significant milestone and now surpasses all the AD enabled streaming music services and daily usage. According to Edison and there are now more weekly podcast listeners than there are Netflix subscribers. In addition to podcast listeners extraordinary engagement with the medium we think.
This audience diversity and reach advantage is a compelling value proposition for our advertising partners as well and finally podcasts and broadcast radio are truly complementary businesses as you can see by their listening profiles, 68% of broadcast radio listening happens out of home and 69% of podcast.
Listening occurs in the home. These listing patterns are complementary because at their core they provide the same benefit the listeners both our companion chip mediums and both keep their listeners company just at different times and locations throughout the day and the natural synergy between these two mediums gives us a real advantage in podcasts.
Content creation promotion marketing and advertising sales as you can see in our consumer engagement revenue and profitability metrics and critically for US podcast usage does not come at the expense of radio usage, rather instead. According to a recent survey 70% of podcast listeners say they replaced time spent with social.
Media platforms, 50% say they replace time spent with Youtube and 46% said they replace time spent with streaming music services to make time for their podcast listening. In addition to our industry leading podcast business. We also have the number one streaming digital radio service, which is five times larger than our closest competitor we have the <unk>.
Larger social footprint of any audio service by a factor of seven and we operate 3000 national and local websites that reached almost 150 million people in the United States each month, all of which represent additional opportunities for our advertising partners to interact with our highly engaged consumer base and provide additional.
Growth for the company.
Let's turn now to our multi platform group, which includes our broadcast radio networks and events businesses in the second quarter revenues were $596 million down five 9% versus prior year, which is an improvement from down seven 4% in the first quarter. Adjusted EBITDA was 162 million down 16, 5%.
Versus prior year, which is a substantial improvement from down 35% in the first quarter and nearly double the adjusted EBITDA, we generated in the first quarter second quarter Multiplatform group adjusted EBIT margins were 27, 3%.
To put this recent performance in perspective during the 2020 economic downturn, our second quarter Multiplatform group revenues were down 53, 4% year over year compared to down just five 9% year over year in Q2 of this year, we think that significant improvement is partly attributable to the technology and data investments we've made.
To make our broadcast radio assets more like digital assets for advertisers, including data enabled targeting algorithmic buying attribution and performance measurement capabilities, along with our unique smart audio products and our growing AI capabilities, leading to strong revenue growth potential for our broadcast radio assets.
The multiplatform group does continue to be impacted by some of the advertising uncertainty we called out in the first quarter as we mentioned in our first quarter call. Our smaller advertisers have been more likely to continue to spend through the uncertainty while there was some softness in our larger advertisers in Q2 are smaller advertisers remained resilient and we saw a gradual improvement from.
Our larger advertisers as well, which leads us to believe that we'll continue to see improvements in the business through the remainder of the year.
I do want to point out that the biggest driver in terms of our full year financial performance as always the fourth quarter. The fourth quarter is always our largest revenue EBITDA and free cash flow quarter of the year. Because it's also the largest quarter of the year for most of our advertising partners in terms of sales and advertising spend if you remember last year, despite the slowdown in the macro trends throughout.
The year, the fourth quarter it turned out to be the best quarter in <unk> history as advertisers accelerated their spin. So the question will be will the advertisers who have cut back our stood on the sidelines throughout the year start to spin as they entered the fourth quarter based on the improving trends, we mentioned here and how the fourth quarter of last year performed we think.
The answer to that is most likely yes, but we'll have better insight into those trends as we near the end of the third quarter turning to the state of the broadcast radio industry radio continues to be a vital and trusted source of information entertainment companionship and support for hundreds of millions of Americans and is irreplaceable during times of crisis and <unk>.
Aster and local communities. There is no better evidence of that unique power that radio has with the consumers than what we saw happen in the Senate two weeks ago with the AAM radio for every vehicle Act bipartisan legislation, which would require automakers to keep a M radio in new cars, including Evs at no additional cost to the consumer this bill introduced by.
Senators Markey and crews and currently with 28 co sponsors equally divided between Democrats and Republicans passed out of committee with near unanimous bipartisan support importantly, with the full support of chairwoman Cantwell and is the result of listeners strong feedback to Congress and reflects the passionate and vocal.
Sumer base that radio enjoys broadcast radio's reach and the loyalty that audiences have to it's a variety of host programs and content is unmatched in media today and <unk> ability to connect those audiences with our advertising partners directly correlates to the advertising revenue potential of these assets remember historically.
Advertising has always followed the consumer and consumers are on the radio and staying on the radio so <unk> mass reach will become even more important as advertisers and agencies struggled to replace the rapidly declining reach that has historically been provided by linear TV and cable networks as a reminder, CBS the.
<unk> television network has seen its consumer reach cut in half since the early two thousands while <unk> broadcast radio consumer reach grew over the same period and now reaches an audience almost twice the size of CBS .
And critically for our advertising partners streaming video services have been unable to compensate for the decline in linear TV reach which again highlights the opportunity we have before US now I know some are asking of broadcast radio as a revenue and earnings growth platform for the company.
Or if it's a declining business that digital must compensate for.
Let me be clear, while it will likely advance at a lower growth rate than our digital business. We feel certain broadcast radio will provide long term sustainable revenue and earnings growth for <unk>.
Before I turn it over to rich I'm going to leave you with this final thought as we look to the back half of 2023, we know we're up against some tough year over year comps as the second half of 2022 benefited from a very strong mid term political cycle as well as some non returning COVID-19 related advertising, but with the actions we've taken to improve our operating <unk>.
<unk> in combination with the gradual improvement we're seeing in the advertising marketplace. We believe we will see a continued quarter over quarter sequential improvement. This will also help position us for a strong 2020 form which as a reminder is also a presidential political year and now I'll turn it over to rich.
Thanks, Bob as I take you through our results Youll notice that as Bob mentioned, we slightly exceeded our previously provided guidance for the quarter.
Q2, 2023 consolidated revenues were down three 6% year over year, a little better than the guidance, we provided of down mid single digits and excluding the impact of political our consolidated revenues were down one 8%.
Consolidated direct operating expenses decreased two 8% for the quarter. This decrease was primarily driven by cost savings initiatives, including reduced compensation expense and lower digital royalty fees, which in the prior year quarter benefited from the settlement of amounts related to prior periods. This decrease was partially offset by the increase of certain.
<unk> tied to the growing digital revenues, including third party digital costs and production costs are consolidated SG&A expenses increased three 9% for the quarter, primarily driven by higher variable compensation expense and higher bad debt expense, partially offset by lower sales commissions as a reminder, we paid minimal bonuses.
To our employees last year, we generated a second quarter GAAP operating loss of $897 million compared to operating income of $83 million in the prior year quarter included in our GAAP operating loss was the impact of a $961 million noncash intangible impairment related to our FCC licenses and goodwill.
If you recall when we emerged from bankruptcy in May of 2019, when the macroeconomic environment was much different than it is today, we applied fresh start accounting, which resulted in a significant write up of our intangible assets.
We revisit and evaluate our intangible asset valuations each year using analysis, which incorporate among other things consideration of the current macroeconomic conditions current interest rate levels and current equity and debt valuations in the marketplace.
These key factors have shifted substantially over even the past couple of years driven in part by the fed sharp interest rate increases.
Cooperating these updated factors into our analytical review results in an adjustment to the book value of our intangible assets.
Our second quarter, adjusted EBITDA was $191 million compared to $237 million in the prior year quarter and slightly above the midpoint of the guidance range, we provided of 180 million to $200 million and more than double the adjusted EBITDA, we generated in the first quarter turning now to the performance.
Of our operating segments and as a reminder, there are slides in the earnings presentation on our segment performances in the second quarter Digital audio group revenues were $261 million of three 3% year over year and they comprised approximately 28% of our second quarter consolidated revenues digital.
Oreo group adjusted EBITDA was $85 million of seven 2% year over year, and our Q2 margins also improved year over year to 32, 4% within the digital audio group or our podcasting revenues, which grew 12, 9% year over year and our non podcasting digital revenues, which were.
Down approximately one 6% year over year, reflecting non returning COVID-19 related advertising spending in the prior year and as Bob said, we expect to be back to positive revenue growth for our digital X podcasts and revenues in the third quarter.
As anticipated in the second quarter, we continued to see improvement in our digital audio group EBITDA flow through in EBITDA margins and in the long term. We continue to believe our digital audio group should be a 35% adjusted EBITDA margin business.
<unk> platform group revenues were $596 million.
Down five 9% year over year, adjusted EBITDA was $162 million.
Down 16, 5% year over year and nearly double the adjusted EBITDA, we generated in the first quarter Multiplatform group adjusted EBITDA margins also improved sequentially to 27, 3% audio and media services grew revenues were $66 million down approximately 7% year over year and <unk>.
Adjusted EBITDA was $18 million down from $22 million in the prior year, excluding the impact of political in the prior year quarter audio and media services group revenues were up two 4% at quarter end, we had approximately $5 $2 billion of net debt outstanding and our total liquidity was 580.
$5 million, which includes a cash balance of $165 million a quarter ending net debt to adjusted EBITDA ratio was six times, we remain committed to our long term goal of a net debt to adjusted EBITDA ratio of approximately four times as highlighted on past calls we have no material maintenance covenants and no debt maturity.
Until mid 2026, and the current macro environment. This type of debt profile positions us to be both resilient and opportunistic and responding to that market development in Q2, we repurchased $80 million of the principal balance of our eight <unk> senior unsecured notes at a meaningful discount.
They are a par value generating both earnings and free cash flow accretion. This brings our total repurchase of these notes to $430 million, reducing the outstanding amount from 145 billion to approximately $1 billion.
And results in aggregate annualized interest savings of approximately $40 million, we monitor market conditions and as opportunities arise, we will continue to improve and optimize our capital structure.
In the second quarter, we generated $39 million of free cash flow, including the impact of $5 million of real estate asset sales, where our free cash flow conversion. This quarter was lower than we had anticipated. This was largely driven by the timing of collections, which will reverse themselves in Q3, we had over $30 million of billings.
A few customers that were due towards the end of June that we received on July 5th These are not bad debts, just certain customers holding payments a bit longer.
As Bob mentioned earlier, we expect to generate positive free cash flow for each subsequent quarter in 2023 with a significant amount expected to be generated in the fourth quarter.
I want to turn now to our outlook for Q3 as well as some thoughts on the full year in 2024 weeks.
We expect our Q3 2020 revenues to be down mid single digits and down low single digits, excluding the impact of political revenue rec.
Revenue for the month of July was down approximately 5%.
Turning to the individual segments, we expect multi platform group revenues to be down high single digits. Excluding the impact of political we expect multi platform group revenues to be down mid single digits with the revenue slightly higher than Q2 revenue.
We expect digital audio group revenues to be up mid single digits, and we expect audio and media services revenues to be down in the high teens or down low single digits, excluding the impact of political.
Turning to adjusted EBITDA for Q3, 2023, we expect to generate consolidated adjusted EBITDA in the range of $195 million to $205 million.
Want to comment on the following items affecting free cash flow. In addition to the tax planning initiatives mentioned on our first quarter call. We have identified additional opportunities to further reduce our cash tax burden and now expect to pay approximately $15 million of cash taxes in 2023 almost half the prior guide.
Of 25 to 30 million.
Our estimate of full year 2023 capital expenditures remains at $90 million cash restructuring expenses remained down year over year, which we expect to continue through the remainder of the year and expect to be around $50 million. We continue to be impacted by the current interest rate environment as <unk>.
40% of our debt is floating but we are committed to opportunistically, improving our capital structure and reducing our interest expense as the market allows it.
And Bob's opening remarks, he commented on the unique opportunity <unk> been presented with the capitalize on changes and disruptions that are taking place across the advertising and media ecosystems and we have included a slide in the investor presentation on the Dentsu study he referenced.
With that context in mind I would like to provide some thoughts on our outlook for the back half of 2023, and what that means for us in 2024 and beyond we continue to see improvements in the advertising marketplace and believe that they are an indication that our multi platform revenues will continue its quarterly sequential improvement.
<unk> and then our digital audio grew revenues will continue to grow in the second half of 2023.
These improving trends in combination with outperformance in the first and second quarters relative to guidance along with a presidential election ahead, which is giving us every vacation will generate record political advertising revenues gives us confidence that this advertising market price recovery continues we expect to have a strong 2024.
With the resumption of our growth story in terms of revenue profitability and free cash flow generation and of course this growth will increase our ability to continue to improve our capital structure.
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 finally on behalf of our entire senior management team, Bob and I want to thank our team.
<unk>, who work to deliver for their communities and for IHOP everyday.
Now, we will turn it over to the operator to take your questions. Thank you.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
And your first question comes from the line of Steven Cahall from Wells Fargo. Your line is open.
Thank you.
Maybe to start off where you've heard a lot over the last couple of weeks about some of the differences going on in local versus National I think just with your larger portfolio you have a little more waiting to national versus some of your radio peers.
What we've heard that there is a bit more weakness. So I'm wondering if you could just compare and contrast, those trends a little bit.
And then rich maybe just on the expense management.
Seems like there is some cross currents here corporate expense was up a little bit in the quarter, you talked about not paying bonuses last year and I'm sure that's something that you'd like to get back to you for employee retention. So how do we think about both the corporate and the non corporate expense base going forward as you look to manage those tightly but also have some other expenses that you might be leaning into.
Ed.
Great.
Steve Let me take the first question.
I think when you look at it.
National local we really look at it as more larger advertisers and smaller advertisers.
Point out that although we may have a greater exposure to larger advertisers. We also tend to get a greater share of advertising as well, so I think thats probably compensates.
In terms of the smaller advertisers where people have needed to spend their money, we've seen sort of continue to to spin through the softness.
Larger advertisers that makes that somewhat but at the at the levels. They were in some categories actually are up and the large advertisers and some holding back we think they are holding back and again like many people have already been talking it looks like probably in Q4 is the quarter when that breaks loose.
<unk>.
Yes.
Steve It's rich.
And by the way to Bob's point, you sort that looks like that and if you go back to last year.
Q4, I think Youll see we had a strong Q4 in the wall drive retires in particular came back during that quarter on expense management.
Continued to aggressively manage expenses specifically to your question.
Really the increase in corporate expenses for Q2.
Entirely relates to just bonus accruals, we didn't pay bonuses last year.
But just overall in the expense that we just kind of look at the benefits.
In terms of savings.
Even within our Q3 guidance.
We gave of $195 million to $205 million.
Got some pretty significant savings.
Baked into those numbers also for cost savings. So feel good about where we are our cost savings and corporate is really entirely related to accrual of bonuses.
And then maybe just a quick follow up on the impairment that you took is that related to.
Any M&A that you've done over the last few years or is that sort of a broader.
Goodwill and intangible charge for the company writ large thank you.
David It's a 100% the latter it's just honestly, it's really accounting a mathematical exercise.
Put simply more than anything else it really happened because of the value of our debt and equity and that triggers.
And apparently.
A lot of that.
Driven by the Spike in interest rates that we will see again and truly just a mathematical calculation.
And just to make sure that you're 100% clear.
And your next question comes from.
<unk> from B Riley Securities. Your line is open.
Yes, good morning, everybody thanks for taking the questions.
One of the impact.
The optimism about the fourth quarter recovery a little bit.
Especially given the guidance for mid single digit revenue declines in the third quarter.
What is it that's giving you that confidence that youll see that recovery in the fourth quarter or is it actual conversations with advertisers, saying is it visibility into the bookings pipeline just trying to unpack that.
<unk> more optimistic outlook for the fourth quarter, others haven't been.
Willing to.
Be that aggressive on why they think budgets will recover too. Thanks.
If you look at last year for.
For example, although the year was softening.
And you're probably about the second quarter.
At the time, we got in the fourth quarter, we had a record fourth quarter for the company and a record quarter for the company.
We also look at companies, especially as you get to large advertisers usually their biggest sales quarter of almost all of them is Q4 is when they spend big money on advertising if you will.
Hold out for the year, the one quarter, you probably will not hold out for as Q4 and as we've had conversations with advertisers as well as looking at historical trends.
We feel confident.
Q4, certainly it's going to be much stronger I think the question is how much stronger.
And the only thing.
Just add to what Bob said, when you talked about I think you used the word optimism.
I think if you just look at it I think Q Q1, we did about $811 million revenue as a company in Q2, just look at the sequential improvement. We just did nine 'twenty. If you kind of look at the overall guidance for Q3 that would lead you to about $940 million or so.
I think as we're thinking about Q4, it's exactly obviously, what Bob said between large and small advertisers what we saw last year and just then look at the sequential performance.
Anthony has had this year in terms of strengthening and by the way you've also seen it reflected in the EBITDA numbers were pretty much Q2, because we just announced a pretty much double the levels. We had in Q1 on absolute basis for EBITDA.
Great. Thanks, and then just a follow up so.
I know, we're still a little bit a ways away from the 2020 for political advertising cycle.
But one thing I think I am consistently hearing is a lot of the campaigns leverage digital channels more effectively.
Next year, whether that's <unk>.
Or podcast is there anything youre doing.
Maybe to prepare yourself, specifically on the podcast side to capture some of those political budgets at this point.
Well look we are not.
Not only on Pi casting, but on our broadcast radio as well we're developing.
Data capabilities that I think the political advertisers are looking for and I think when you say that moving to digital I think what's really moving to as they're getting much more digitally informed the media buy and so I think any.
Surpluses that can provide that extra layer of data.
I think we'll benefit from it.
And again for <unk>.
Radio.
Broadcast radio in addition to podcasts on our digital properties.
We are putting that in place and as you know it's been a priority for the company.
Alright, Thanks, guys I'll turn it over.
And your next question comes from the line of Jim Goss from Barrington Research. Your line is open.
Alright. Thanks.
Bob You mentioned.
That is that radio is now declining.
Declining phase, but the core radio business.
At least be growing modestly and I'm wondering if you could.
Look at that a little bit more in terms of the <unk>.
<unk> direct sales versus the digital components, because it seems that over the years.
<unk> category Thats been clear.
Radio has had.
Difference in shares with the digital elements.
<unk>.
Yes.
I know there are complementary, but the direct sales versus the <unk>.
The other radio ad placements.
I'm not sure I exactly understand what you mean about direct sales could you just clarify that.
I guess I just mean I think you have the sales.
Sales staffs that have relationships with the advertisers.
And then you would probably also have.
Are there other ads interspersed.
Digitally placed ads.
Are you, saying that the correctly placed ads would be.
At least flat or growing very modestly.
Par for the business, Yes, I think if you look at how we sell our advertising we have a number of ways that we do the reason we have so many platforms is each one has a door.
An advertiser can come through and understood.
I understand <unk> developed a relationship with I heart and then in most cases, they spread or other platforms as well.
What's exciting about broadcast radio first and foremost it has to be on.
And the study dentist, who just.
Pretty amazing instead radio what's the most efficient of all audio platforms, providing tenex more efficiency when compared to the average online video AD. So we know that radio giving them at 10 X efficiency above the online video ads, which is where a lot of money is going.
Encouraging news.
And we are seeing as we build our organization. Yes, we are building out programmatic capabilities Youre pointed by buying I assume thats. What you are buying directly that advertisers will be able to go in and basically self service by what they want to offer platforms, and we will append data to that or allow them to append.
Their data to it.
It will make it again more valuable more usable we also have a group that deals just with the clients.
The major clients and we are really marketing partners Theyre looking for marketing solutions.
Although it's bought as media in these discussions is not an immediate discussion it is.
Marketing discussion and again, having the platform as we do and having the unique scale. We do twice the reach of the biggest TV network twice the reach of the next largest audio services gives us the opportunity to do things others can't.
And then of course, we have great relationships, we think with the with the agencies from the.
From the major hold goes all the way down to the smallest agencies and we've put a great priority of maintaining those relationships as well. So I think we're looking at all of those benefiting.
From the addition of data benefiting from making easier benefiting from making it all looked like digital and as you know with the Triton acquisition, we made we built out.
Unified platform for audio so if people find an audience they want.
Nielsen audience specific audience for their needs, we can find that audience seamlessly across all forms of audio and we again think that is a big boost to broadcast radio as well, having yet add into that right.
Yes.
Just one last point I might add from a.
Performance standpoint, and <unk> standpoint, you did say that we were down if you look at sequential performance for MTGE group. During this year, we were down five 9% this quarter.
Q1.
The LPG group multi platform was down seven 4%. So one of the things we said in terms of tracking and looking at our progress.
The outlook of everything Bob just said is look at the sequential improvement.
And P. J and also look at double the EBITDA number.
In terms of the performance and by the way if you go back to 2020.
In terms of coming out of that period of time independent dynamic and obviously dramatic economic slowdown.
Q2 was down 50 over 50%.
Q1.
Prior year. So again, just all the data points show significant improvement et cetera overall performance in multi platform group as a result, as Bob said to the sales force and the access we have put into the marketplace.
Okay, and one other thing and this might be implicit similar to what you've just been saying, but does the complementary nature of radio and podcast.
Between enrollment outcome.
Enable cross selling in certain categories are the local national blend.
And do the same.
Salespeople address both or.
Are there specialists that might do one versus the other.
We do have some specialists, but as you know we have built an organization a number of years ago that any seller anywhere can sell anything without the technology tools to support them in doing that so that allows us to some people call. It bundling, but allows us to put together the right marketing mix for an advertiser and you're right.
Casting is much more significant in home in terms of its overall usage.
Radio out of home so putting those two together it gives us from a 24 hour opportunity with that consumer and it is.
Great value.
Alright, Thanks appreciate it.
And thank you for your help.
Hey.
Thank you all on.
On behalf of Bob myself.
The rest of the management team.
Everybody for listening to the IHOP story.
We're all available Mike Mcginnis for any questions you have on follow up and I appreciate everybody's time.
This concludes today's conference call. Thank you for your participation you may now disconnect.
Okay.
Yeah.
Yeah.