Q2 2024 iHeartMedia Inc Earnings Call

August 8, 2024

Richard Bressler, Michael McGuinness, Michael McGuinness, Michael McGuinness, Michael McGuinness,

Speaker Change: good morning and welcome to the iheart media q two two thousand and twenty four earnings call all participants are a listen only mode after the speaker's remarks we will have a question-and answer session

Operator: All participants are in a listen-only mode. After the speaker's remarks, we will have a question and answer session. To ask a question, please press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to Mike McGuinness, Head of Investor Relations. Thank you.

Operator: Participants are in a listen-only mode. After the speaker's remarks, we will have a question-and-answer session. To ask a question, please press the star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to Mike McGuinness, Head of Investor Relations. Thank you.

To ask a question, please press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to Mike McGuinness, Head of Investor Relations. Thank you. Please go ahead.

Mike McGuinness: Good morning, everyone, and thank you for taking the time to join us for our second quarter 2024 earnings call. Joining me for today's discussion are Bob Pittman, our Chairman and CEO, and Rich Bressler, our President, COO, and CFO.

Mike McGuinness: Good morning, everyone, and thank you for taking the time to join us for our second quarter 2024 earnings call. Joining me for today's discussion are Bob Pittman, our chairman and CEO, and Rich Bressler, our president, COO, and CFO.

Speaker Change: Good morning everyone and thank you for taking the time to join us for our second quarter 2024 earnings call. Joining me for today's discussion are Bob Pittman, our Chairman and CEO , and Rich Bressler, our President, COO, and CFO .

Mike McGuinness: 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 in today's call and in the company's SEC filings.

Speaker Change: 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.

Speaker Change: 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 motiisated as a result of certain factors identified on today's call and in the company's sec filings

Speaker Change: Additionally, during this call we will refer to certain non-GAAP financial measures.

Mike McGuinness: Additionally, during this 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.

Speaker Change: 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.

Mike McGuinness: And now, I'll turn the call over to Bob.

Bob Pittman: Thanks, Mike, and good morning, everyone. We are pleased to report that our second quarter 2024 results were in line with our previously provided adjusted EBITDA and revenue guidance ranges, and we're seeing sequential improvement in our revenue growth. While the marketplace continues to be dynamic with a changing outlook on interest rates, inflation trends, global uncertainty, and a rapidly evolving domestic political landscape, we continue to see strong momentum in our podcast business, our digital ex-podcast business, and the sequential improvement of our multi-platform groups' year-over-year revenue performance.

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

Bob: Thanks Mike and good morning everyone. We are pleased to report that our second quarter 2024 results were in line with our previously provided adjusted EBITDA and revenue guidance ranges. We're seeing sequential improvement in our revenue growth.

Speaker Change: while the marketplace continues to be dynamic with a changing outlook on interest rates inflation trends global uncertainty and a rapidly evolving domestic political landscape we continue to see strong momentum in our podcast business our digital x fivei gas business and the sequential improvement of our multiplatform groups year-over-year revenue performance

Bob Pittman: As we look at the back half of the year, our results will reflect the continuing positive impact of an ad market recovery year, material upside from political advertising, as well as the benefit of our ongoing focus on cost efficiency. Now, let me take you through some of the key financial results of the quarter. In the second quarter, we generated adjusted EBITDA of $150 million. In the middle of the guidance range, we provided $140 to $160 million.

Speaker Change: As we look at the back half of the year, our results will reflect the continuing positive impact on an ad market recovery year, material upside from political advertising, as well as the benefit of our ongoing focus on cost efficiencies.

Speaker Change: Now let me take you through some of the key financial results of the quarter. In the second quarter we generated adjusted EBITDA of $150 million. In the middle of the guidance range we provided of $140 to $160 million.

Bob Pittman: Our consolidated revenues for the quarter were up 1% compared to the prior year quarter, a little above the guidance range of approximately flat year-over-year. And excluding the impact of political, our consolidated revenues were up 0.1% compared to the prior year quarter. This marks the first quarter that our consolidated revenues increased year-over-year since Q4 2022. Turning now to our individual operating segments, the Digital Audio Group generated second quarter revenues of $286 million, up 10% versus the prior year, just above our previously provided guidance of up high single digits and represented 31% of the company's total revenue.

Speaker Change: our consolidated revenues for the quarter were up one percent compared to the prior year quarter a little above the guidance range of approximately flat year-over-year and excluding the impact of political our consolidated revenues rup tenth of one percent compared to the prior year quarter

Speaker Change: This marks the first quarter that our consolidated revenues increased year-over-year since Q4 2022.

Speaker Change: Turning now to our individual operating segments, the Digital Audio Group generated second quarter revenues of $286 million, up 10% versus prior year, just above our previously provided guidance of up high single digits, and represented 31% of the company's total revenue.

Bob Pittman: For the quarter, the Digital Audio Group generated adjusted EBITDA of $92 million, up 9% versus the prior year. The Digital Audio Group's adjusted EBITDA margins were 32%, continuing the trend of sequential margin improvement from first to second quarter.

Speaker Change: For the quarter, the Digital Audio Group generated adjusted EBITDA of $92 million, up 9% versus prior year. The Digital Audio Group's adjusted EBITDA margins were 32%, continuing the trend of sequential margin improvement from first to second quarter.

Bob Pittman: Within the digital audio group are our podcast revenues, which grew 8% versus the prior year. We expect our podcast revenues to return to double-digit year-over-year growth for the third quarter, the fourth quarter, and the full year. Our non-podcast digital revenues grew 10% versus the prior year, and we expect that strength to continue as well. In June, iHeart 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 PodTrack.

Speaker Change: within the digital audio group are our podcast revenues which grew eight percent versus prior year we expect our podcast revenues to return to double digit year-over-year growth for the third quarter the fourth quarter and the full year our non-podcast digital revenues grew ten percent versus prior year and we expect that strength to continue as well

Speaker Change: In June , iHeart 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 PodTrack.

Bob Pittman: And our financial discipline in podcasting continues to pay off as our podcasting EBITDA margins remain accretive to our total company adjusted EBITDA margins. As a reminder, our leadership position in podcasting is, in part, the result of the power of our broadcast radio assets. We've used those assets to build not only the podcast business but also the iHeartRadio app, which is the number one digital radio service, and our marquee live events business, which includes the recent iHeartRadio Music Awards and the iHeartCountry Festival.

Speaker Change: and our financial discipline in podcasting continues to pay off as our podcasting EBITDA margins remain accretive to our total company adjusted EBITDA margins.

Speaker Change: As a reminder, our leadership position in podcasting is, in part, the result of the power of our broadcast radio assets.

Speaker Change: we've used those assets to build not only the podcast business but also the iheart radio appwhich is the number one digital radio service and our marquque live immense business which includes the recent iheart radio music awards and the i h country festival

Bob Pittman: In addition to our industry-leading podcast business and our digital radio streaming service, which has five times the digital listening of our closest competitor, we also have the largest social footprint of any audio service by a factor of seven, and we operate 3,000 national and local websites that reach more than 110 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 revenue growth for the company. Turning now to the Multi-Platform Group, which includes our broadcast radio, networks, and events businesses.

Speaker Change: in addition to our industry leading podcast business and our digital radio streaming service which has five times the digital listening of our cosest competitor we also have the largest social footprint of any audio service by a factor of seven and we operate three thousand national and local websites that reach more than one hundred and ten million people in the united states each month

Speaker Change: all of which represent additional opportunities for our advertising partners to interact with our highly engaged consumer base and provide additional revenue growth for the company

Speaker Change: Turning now to the Multi-Platform Group, which includes our broadcast radio, networks, and events businesses.

Bob Pittman: In the second quarter, revenues were $576 million, down 3% versus the prior year, slightly better than our previously provided guidance of down mid-single digits and down 4% excluding the impact of political advertising. Adjusted EBITDA was $104 million compared to $162 million in the prior year quarter due primarily to the timing of certain non-cash marketing expenses associated with our iHeartRadio Music Awards, which we discussed last quarter Additionally, we expect the multi-platform group to have positive year-over-year revenue growth in the back half of the year, yet another indication of the continuing strengthening of the ad market and our performance within it.

Bob Pittman: In the second quarter, revenues were $576 million, down 3% versus the prior year, slightly better than our previously provided guidance of down mid-single digits and down 4% excluding the impact of political advertising. Adjusted EBITDA was $104 million, compared to $162 million in the prior year quarter, due primarily to the timing of certain non-cash marketing expenses associated with our iHeartRadio Music Awards, which we discussed Additionally, we expect the multi-platform group to have positive year-over-year revenue growth in the back half of the year, yet another indication of the continuing strengthening of the ad market and our performance within it.

Speaker Change: In the second quarter, revenues were $576 million, down 3% versus prior year, slightly better than our previously provided guidance of down mid-single digits, and down 4% excluding the impact of political advertising.

Speaker Change: adjusted ebitda was one hundred four million compared toone hundred sixty two million in the prior year quarter due primarily to the timing of certain noncash marketing expenses associated with our iheart radio music awards which we discussed last quarter

Speaker Change: Additionally, we expect the multi-platform group to have positive year-over-year revenue growth in the back half of the year, yet another indication of the continuing strengthening of the ad market and our performance within it.

Bob Pittman: And this year, iHeart is serving as the exclusive audio home for the NBC coverage of the 2024 Summer Olympics in Paris, with original new podcasts from the Olympic Village, as well as station streaming real-time, play-by-play coverage of the games, all in partnership with NBCU. With the unparalleled reach and audience of iHeart's platforms, our coverage of the games results in significant engagement on our broadcast, digital, and podcast platforms and invaluable cross-promotion to our partner NBCU, showing the strength of our relationship with our listeners and validating the ability of our audio assets to drive off-platform behavior too.

Bob Pittman: And this year, iHeart is serving as the exclusive audio home for the NBC coverage of the 2024 Summer Olympics in Paris, with original new podcasts from the Olympic Village, as well as station-streaming real-time play-by-play coverage of the games, all in partnership with NBCU. With the unparalleled reach and audience of iHeart's platforms, our coverage of the games results in significant engagement on our broadcast, digital, and podcast platforms and invaluable cross-promotion to our partner NBCU, showing the strength of our relationship with our listeners and validating the ability of our audio assets to drive off-platform behavior too.

Speaker Change: And this year, iHeart is serving as the exclusive audio home for the NBC coverage of the 2024 Summer Olympics in Paris, with original new podcasts from the Olympic Village, as well as station-streaming real-time, play-by-play coverage of the games, all in partnership with NBCU.

Speaker Change: with the unparalleled regional audience of ih'z platforms

Speaker Change: Our coverage of the games results in significant engagement on our broadcast, digital, and podcast platforms and invaluable cross-promotion to our partner NBCU, showing the strength of our relationship with our listeners and validating the ability of our audio assets to drive off-platform behavior too.

Bob Pittman: Looking at the company as a whole, we remain focused on growth, from expanding businesses and developing new consumer and revenue opportunities to the development of programmatic platforms that enable the automated buying, selling, and planning of our broadcast radio inventory, which allows us to participate in the growing and substantial digital and programmatic TAMs. And our continued focus on expense management, driving efficiencies, and structuring our business using technology, including AI, drives both short- and long-term profitability. And now, I'll turn it over to Rich. Thank you, Bob.

Speaker Change: Looking at the company as a whole, we remain focused on growth.

Speaker Change: from expanding businesses and developing new consumer and revenue opportunities to the development of programmatic platforms that enable the automated buying, selling, and planning of our broadcast radio inventory which allow us to participate in the growing and substantial digital and programmatic TAMs.

Rich: And our continued focus on expense management, driving efficiencies, and structuring our business using technology, including AI, drives both short- and long-term profitability. And now I'll turn it over to Rich.

Rich Bressler: Thank you, Bob. As I take you through our results, you'll notice that our second quarter 2024 results were in line with, and in some cases slightly above, our revenue and Adjusted EBITDA guidance ranges. Our Q2 2024 consolidated revenues were up 1% year-over-year, a little above the guidance we provided of approximately flat year-over-year. Our Consolidated Direct Operating Expenses increased 7.6% for the quarter. This increase was primarily driven by higher variable content costs related to the increase in digital revenues, as well as an increase to event costs related to the timing of the 2024 iHeartRadio Music Awards, which were held in the second quarter of 2024 and the first quarter of 2023, as mentioned in our last earnings call. Our consolidated SG&A expenses increased 9.6% for the quarter.

Rich Bressler: Thank you, Bob. As I take you through our results, you'll notice that our second quarter 2024 results were in line with, and in some cases slightly above, our revenue and Adjusted EBITDA guidance ranges. Our Q2 2024 Consolidated Revenues were up 1% year-over-year, a little above the guidance we provided of approximately flat year-over-year. Our Consolidated Direct Operating Expenses increased 7.6% for the quarter. This increase was primarily driven by higher variable content costs related to the increase in digital revenues, as well as an increase to event costs related to the timing of the 2024 iHeartRadio Music Awards, which were held in the second quarter of 2024 and the first quarter of 2023, as mentioned in our last earnings call. Our consolidated SG&A expenses increased 9.6% for the quarter.

Rich: thank you bob as i take you through our results you'll notice that our second quarter two thousand and twenty four results were in line and in some cases slightly above our revenue and adjusted ebitda guidance ranges

Rich: Our Q2 2024 consolidated revenues were up 1% year-over-year, a little above the guidance we provided of approximately flat year-over-year.

Speaker Change: Our Consolidated Direct Operating Expenses increased 7.6% for the quarter.

Speaker Change: This increase was primarily driven by higher variable content costs related to the increase in digital revenues as well as an increase to event costs related to the timing of the 2020 for iHeartRadio Music Awards.

Speaker Change: which was in the second quarter of 2024 and the first quarter of 2023 as mentioned in our last earnings call.

Speaker Change: Our consolidated SG&A expenses increased 9.6% for the quarter.

Rich Bressler: The increase was driven primarily by a higher non-cash marketing expense due to the timing of the iHeartRadio Music Awards, as mentioned before, as well as the cost incurred in connection with executing on our cost savings initiatives, partially offset by lower bad debt expense and lower bonus expense. We generated a second quarter GAAP operating loss of $909.7 million compared to a loss of $897.2 million in the prior year quarter. Included in our GAAP operating loss was the impact of a $920 million non-cash intangible impairment related to our FCC licenses in Goodwill.

Speaker Change: The increase was driven primarily by higher non-cash marketing expense due to the timing of the iHeartRadio Music Awards, as mentioned before, as well as the cost incurred in connection with executing on our cost savings initiatives, partially offset by lower bad debt expense and lower bonus expense.

Speaker Change: we generated the second quarter gaap operating loss of nine hundred and nine point seven million compared to a loss of eight hundred and ninety seven point two million in the prior year quarter

Speaker Change: Included in our GAAP operating loss was the impact of a $920 million non-cash intangible impairment related to our FCC licenses and goodwill.

Rich Bressler: Our second quarter adjusted EBITDA was $150 million. Within the guidance range, we provided $140 to $160 million, and compared to $191 million in the prior year quarter. Turning now to the performance of our operating segments, and as a reminder, there are slides in the earnings presentation on our segment performance. In the second quarter, the Digital Audio Group's revenues were $286 million, up 9.5% year-over-year, and they comprised 31% of our second quarter consolidated revenues.

Rich Bressler: Our second quarter adjusted EBITDA was $150 million, which is within the guidance range we provided of $140 to $160 million and compared to $191 million in the prior year quarter. Turning now to the performance of our operating segments, and as a reminder, there are slides in the earnings presentation on our segment performance.

Speaker Change: Our second quarter adjusted IBT-A was $150 million. Within the guidance range we provided of $140 to $160 million and compared to $191 million in the prior year quarter.

Speaker Change: turning out to the performance of our operating segmentsand as we reminderthat there are slides in the earnings presentation on our segment performances

Rich Bressler: In the second quarter, the Digital Audio Group's revenues were $286 million, up 9.5% year-over-year, and they comprised 31% of our second quarter consolidated revenues. The Digital Audio Group's adjusted EBITDA was $92 million, up 8.6% year-over-year, and our Q2 margins were 32.2%. Within the Digital Audio Group are our podcasting revenues of $105 million, which grew 8.1% year-over-year

Speaker Change: in the second quarter the digital audio group' revenues with two hundred eighty six million dollars up nine point five percent year-over-year and they comprise thirty-one percent of our second quarter consolidate revenues

Rich Bressler: The Digital Audio Group's adjusted EBITDA was $92 million, up 8.6% year-over-year, and our Q2 margins were 32.2%. Within the Digital Audio Group are our podcasting revenues of 105 million, which grew 8.1% year-over-year. We expect to resume our double-digit revenue growth trajectory in the third quarter, the fourth quarter, and for the full year as well, and our non-podcasting digital revenues of $181 million, which grew 10.3% year-over-year, reflecting the investments we have made in building out our more diversified digital capability.

Speaker Change: The Digital Audio Group's adjusted EBITDA was $92 million, up 8.6% year-over-year, and our Q2 margins were 32.2%.

Speaker Change: Within the Digital Audio Group are our podcasting revenues of 105 million, which grew 8.1% year-over-year. We expect to resume double-digit revenue growth trajectory in the third quarter, the fourth quarter, and for the full year as well.

Rich Bressler: We expect to resume double-digit revenue growth in the third quarter, the fourth quarter, and for the full year as well. And our non-podcasting digital revenues of $181 million, which grew 10.3% year-over-year, reflecting the investments we have made in building out our more diversified digital capabilities. The Multi-Platform Group's revenues were $576 million, down 3.4% year-over-year, or down 4% excluding the impact of political

Speaker Change: and our non-podcasting digital revenues of $181 million, which grew 10.3% year-over-year, reflecting the investments we have made in building out our more diversified digital capabilities.

Speaker Change: The Multi-Platform Group's revenues were $576 million, down 3.4% year-over-year, but down 4% excluding the impact of political.

Rich Bressler: Adjusted EBITDA was $104 million, down from $162 million in the prior year quarter, and the Multi-Platform Group's adjusted EBITDA margins were 18.1%. Turning to the Audio and Media Services Group, revenues were $70 million, 6.5% year-over-year, and adjusted MVDA was $24 million, 28.9% from $18 million in the prior year. Excluding the impact of political, the Audio and Media Services Group revenues were up one-tenth of a percent. As we've highlighted in our past calls, we remain focused on financing opportunities available to us, including with respect to our debt maturities, the earliest of which is May 2026.

Speaker Change: Adjusted EBITDA was $104 million, down from $162 million in the prior year quarter, and the Multi-Platform Group's Adjusted EBITDA margins were 18.1%.

Rich Bressler: Turning to the Audio and Media Services Group, revenues were $70 million of 6.5% year-over-year, and adjusted MVDA was $24 million of 28.9% from $18 million in the prior year. Excluding the impact of political, the Audio and Media Services Group revenues were up one-tenth of a percent. As we've highlighted in our past calls, we remain focused on financing opportunities available to us, including with respect to our debt maturities, the earliest of which is May 2026.

Speaker Change: turning to the audio andimmedia services group revenues were seventy mion dollars of six point five percent year-over-year and adjusted ebitda was twenty-four million dollars of twenty-eight point nine percent from eighteen million dollars in the prior year

Speaker Change: Excluding the impact of political, the audio and media services group revenues were up one-tenth of a percent.

Speaker Change: As we've highlighted in our past calls, we remain focused on financing opportunities available to us, including with respect to our debt maturities, the earliest of which is May 2026.

Rich Bressler: We are engaged in active dialogue with a group holding more than a majority of our debt, and we look forward to sharing an update regarding our ongoing refinancing activities when appropriate. Our total liquidity was $791 million at quarter end, which includes a cash balance of $365 million.

Rich Bressler: We are engaged in active dialogue with a group holding more than a majority of our debt, and we look forward to sharing an update regarding our ongoing refinancing activities when appropriate. At quarter end, we had approximately $4.85 billion of net debt outstanding, which was the lowest net debt position in the history of our company.

Speaker Change: We are engaged in active dialogue with a group holding more than a majority of our debt and we look forward to sharing an update regarding our ongoing refinancing activities when appropriate.

Speaker Change: at quarter end we had approimately four point eight five billion dollars of net deb outstanding which was the lowest net debt position in the history of our company our total liquidity with seven hundred and ninety one million dollars quarter end which includes a cash balance of three hundred and sixty five million dollars

Rich Bressler: Our total liquidity was $791 million at quarter end, which included a cash balance of $365 million. Our quarter-ending net debt-to-adjusted EBITDA ratio is 7.3 times, and in 2024, we expect to make progress towards our goal of a net debt-to-adjusted EBITDA ratio of approximately four times. In the second quarter, our free cash flow was $6 million compared to $34 million in the prior year quarter.

Rich Bressler: Our quarter-ending net debt-to-adjusted EBITDA ratio is 7.3 times, and in 2024, we expect to make progress towards our goal of a net debt-to-adjusted EBITDA ratio of approximately four times. We also expect to generate robust political advertising this year, and as a reminder, that political revenue is paid up front, which will help further fuel free cash flow generation in Q3 and Q4. Turning to the individual segments for Q3.

Speaker Change: our quarter ending net debt to adjusted ebitda ratio was seven point three times and in two thousand and twenty four we expect to make progress towards our goal of a net debt to adjusted eidda ratio of approximately four times in the second quarter our free cash flow was six million dollars to vared the thirty four million dollars in the prior year quarter

Rich Bressler: As a reminder, our free cash flow typically builds throughout the year, and we expect to see significant sequential quarterly growth in our free cash flow in each of the remaining quarters in 2024. We also expect to generate robust political advertising this year, and as a reminder, that political revenue is paid up front, which will help further fuel free cash flow generation in Q3 and Q4. Turning now to our outlook for Q3 and the full year. We expect our Q3 2024 revenues to be up mid-single digits. We are still closing the books for the month of July, but we expect revenues to be up low-single digits. Turning to the individual segments for Q3.

Speaker Change: As a reminder, our free cash flow typically builds throughout the year, and we expect to see significant sequential quarterly growth in our free cash flow in each of the remaining quarters in 2024.

Speaker Change: We also expect to generate robust political advertising this year, and as a reminder, that political revenue is paid up front, which will help further fuel a free cash flow generation in Q3 and Q4.

Rich Bressler: We expect the digital audio group's revenue and our podcasting revenue to both be up low double digits. We expect the multi-platform Bruce revenues to be down low single-digit. We expect the Audio Media Services Group's revenues to be up approximately 40%. We expect to generate third quarter adjusted EBITDA in the range of $200 to $220 million compared to $204 million in the prior year quarter. We expect our full year 2024 revenues to be up mid-single digits.

Speaker Change: Turning now to our outlook for Q3 and the full year. We expect our Q3 2024 revenues to be up mid-single digits. We are still closing the books for the month of July , but expect revenues to be up low single digits.

Rich Bressler: We expect the digital audio group's revenue and our podcasting revenue to both be up low double digits. We expect the Audio Media Services Group's revenues to be up approximately 40%. We expect to generate third-quarter adjusted IPTA in the range of $200 to $220 million compared to $204 million in the prior year quarter. Our full-year 2024 political revenues are currently pacing approximately 20 percent higher than the last presidential election cycle and have sequentially improved from the up 16 percent we discussed in our Q1 call, which gives us confidence that this will be a record political year for us and that we will outperform the 167 million dollars of Our estimate of full year 2024 capital expenditures is now expected to be approximately $90 million.

Speaker Change: Turning to the individual segments for Q3. We expect the digital audio group's revenue and our podcasting revenue to both be up low double digits.

Speaker Change: We expect the multi-platform groups revenues to be down low single digits.

Speaker Change: We expect the Audio Media Services Group's revenues to be up approximately 40%.

Speaker Change: we expect to generate third quarter adjusted ebitda in the range of two hundred to twohundred and twenty million dollars compared to two hundred and four million in the prior year quarter we expect our full year two thousand and twenty-four revenues to be up mid- single digits

Rich Bressler: Our full-year 2024 political revenues are currently pacing approximately 20 percent higher than the last presidential election cycle and have sequentially improved from the 16 percent we discussed in our Q1 call, which gives us confidence that this will be a record political year for us and that we will outperform the 167 million dollars of political revenue we generated in 2020. We expect to generate full-year adjusted EBITDA in the range of $760 to $800 million compared to $697 million in the prior year.

Speaker Change: a full year two thousand and twenty four political revenues are currently pacy approximately twenty percent higher than the last presidential election cycle and ab sequentially improved from the up sixteen percent we discussed in our q one call which gives us confidence that this will be a record political year for us

Rich Bressler: Within that guidance range, our second-half revenues will be up 8% to 11% year-over-year, and our adjusted EBITDA will be up 25% to 30% year-over-year. Turning to some of the items affecting our full-year free cash flow, we expect our cash taxes to be approximately 10% of adjusted EBITDA in 2024. Our estimate of full year 2024 capital expenditures is now expected to be approximately $90 million. Cash restructuring expenses will be approximately $70 million this year as we continue to execute on new opportunities to optimize our organization for efficiency and growth.

Speaker Change: Our estimate of full year 2020 for capital expenditures is now expected to be approximately $90 million cash restructuring expenses will be approximately $70 million. This year as we continue to execute on new opportunities to optimize our organization for efficiency and growth.

Operator: for Earnings Call. All participants aren't a listen-only mode. After the speakers remarks, we will have a question-and-answer session. To ask a question, please press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded.

Rich Bressler: On behalf of our entire management team, Bob and I want to thank our team members who work to deliver for their communities, our advertising partners, and for iHeart every day. Now, we will turn it over to the operator to take your questions. Thank you.

Speaker Change: On behalf of our entire management team, Bob and I want to thank our team members, who worked to deliver for their communities, our advertising partners and for IHOP everyday.

Speaker Change: Now, we will turn it over to the operator to take your questions. Thank you.

Michael McGuinness: I would now like to turn the call over to Mike McGuinness, Head of Investor Relations. Thank you, please go ahead. Good morning, everyone, and thank you for taking the time to join us for a second quarter 2020 for Earnings Call. Joining me for today's discussion are Bob Pittman, our chairman and CEO and Rich Bressler, our president, COO and CFO. At the conclusion of our prepared remarks, manager 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.

Operator: If you would like to ask a question, please press star followed by the number one on your telephone keypad. To withdraw any questions, press star one again. We'll pause for just a moment to compile the Q&A list. Our first question comes from Jim Goss from Barrington Research. Please go ahead; your line is open.

Operator: If you would like to ask a question, please press star, followed by the number 1 on your telephone keypad. To withdraw any questions, press star 1 again. We'll pause for just a moment to compile the Q&A roster.

Speaker Change: If you would like to ask a question. Please press star followed by the number one on your telephone keypad to withdraw any questions Press star one again.

Speaker Change: Well pause for just a moment to compile the Q&A roster.

Speaker Change: Our first question comes from Jim Goss from Barrington Research. Please go ahead. Your line is open.

Operator: Alright, thank you. What was the reason for the podcast gains to be so depressed in the latest quarter relative to the rest of digital, and why are you pretty confident that you can return to double digits?

Rich Bressler: Alright, thank you. What was the reason for the podcast gains to be so depressed in the latest quarter relative to the rest of digital, and why are you pretty confident that you can return to double digits?

Jim Goss: Alright, thank you.

Jim Goss: What was the reason for the podcast gains.

Jim Goss: To be so depressed in the latest quarter relative to the rest of the digital and why are you pretty confident that you can return to double digit growth.

Michael McGuinness: 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 refer to certain non-GAAP financial measures. Reconciliation 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-released section of our website.

Rich Bressler: Hey Jim, it's Rich. Thank you. By the way, when we say to the press, you know, still at 8% revenue growth in podcasting, I think, as Bob's comment highlighted two things. One is, you know, we did have a tough comparison to last year, but I think more importantly, we said back to double-digit revenue growth in podcasting for both Q3 and Q4, and for the full year growth overall. So, you know, and you'll see in this quarter, we gave not just quarterly guidance but also, you know, just in terms of the way you think about the business, not just quarter to quarter, but we gave you full year of guidance. We gave guidance for the second half of the year for the total company of 8% to 11% revenue growth and 25% to 30% EBITDA growth.

Rich: Hey, Jeff it's rich.

Speaker Change: By the way when we say depressed still.

Jeff: At 8% revenue growth in podcast.

Jim Goss: I think as you know Bob's comment Woody highlighted.

Speaker Change: One is we did have a tough comparison to last year, but I think more importantly.

Jim Goss: We said back to double digit revenue growth.

Jim Goss: Casting.

Jim Goss: For both Q3 and Q4.

Jim Goss: And for the full year growth overall so.

Bob Pittman: And now, I'll turn the call over to Bob. Thanks, Mike. And good morning, everyone. We are pleased to report that our second quarter 2024 results were in line with our previously provided adjusted EBITDA and revenue guidance ranges for seeing sequential improvement in our revenue growth. While the marketplace continues to be dynamic with a changing outlook on interest rates, inflation trends, global uncertainty, and rapidly evolving domestic political landscape, we continue to see strong momentum in our podcast business, our digital X-Fidecast business, and the sequential improvement of our multi-platform groups year-over-year revenue performance.

Jim Goss: And you'll see in this quarter, we gave not just quarterly guidance.

Jim Goss: But also just in terms of the way you think about the business not just quarter to quarter, but also we gave you full year a bit of guidance. We gave guidance for the second half of the year for the total company of 8% to 11% revenue growth and 25.

Jim Goss: EBITDA growth.

Bob Pittman: And sometimes it's just some timing aspects, but the business continues to be extremely healthy, and we're as optimistic as we've ever been. You know, let me just have a little specificity too, that when we talk about unusual comps, we have one that was a prior year related to the COVID vaccine. As you can imagine, there was zero chance that it would come back for this year. So it was a few things like that that we were up against in terms of comps, which we think are an absolute anomaly and don't recur in the year.

Jim Goss: And sometimes it's just the timing aspects, but the business continues to be extremely healthy it was optimistic.

Speaker Change: Let me just ask a little specificity to that when we talk about unusual comps.

Speaker Change: We have one that was prior year related to Covid vaccine as you can imagine there were zero chance that was coming back for this year. So it was a few things like that that we were up against in terms of comps, which we think are an absolute anomaly and don't recur in the year.

Bob Pittman: As we look at the back half of the year, our results will reflect the continuing positive impact on an ad market recovery year, material upside from political advertising, as well as the benefit of our ongoing focus on cost efficiencies.

Bob Pittman: Now, let me take you through some of the key financial results of the quarter. In the second quarter, we generated adjusted EBITDA of 150 million and the middle of the guidance range we provided up 140 to 160 million. Our consolidated revenues for the quarter were up 1% compared to the prior year quarter, a little above the guidance range of approximately flat year over year, and excluding the impact of political, our consolidated revenues were up one tenth of 1% compared to the prior year quarter. This marks the first quarter that our consolidated revenues increased year-over-year since Q4, 2022.

Bob Pittman: Okay, so it's more of a comp issue, so that's good to know. In fact, just a little bit more on the evolution of the podcasting business in terms of content costs and ad demand. I think a lot more attention is being paid to it. I'm just wondering where you think we are in the maturity cycle for that business. Is it still very early, or are we getting, you know, a little more into the second or third inning? Where would you say we are in terms of the development of podcasting?

Speaker Change: Okay. So it's more of a comp issue. So that's good to know.

Operator: Okay, so it's more of a comp issue, so that's good to know. In fact, just a little bit more on the evolution of the podcasting business in terms of content costs and ad demand. I think a lot more attention is being paid to it. I'm just wondering how you think this business is developing and where you think we are in the maturity cycle for that business. Is it still very early, or are we getting a little closer to the second or third inning? Where would you say we are in terms of the development of podcasting?

Speaker Change: And in fact, they're just a little bit more on the evolution of the pad casting business in terms of content costs and add demand I think there are a lot more attention is being paid to it I'm just wondering where you think how do you think these developed and where you think we are in the maturity cycle for that business is it's still very early are we.

Speaker Change: You know, it's a little more second or third inning, where would you say we are in terms of the development of that testing.

Bob Pittman: Well, you know, it's a great question. I think in terms of audience usage, if you follow the statistics, not only are more people using podcasting, and coming to podcasts, but they are spending more time with them. So you have two growth vectors, an increasing audience and an increasing usage by the existing audience, and I don't see that abating anytime soon. As you know, it has surpassed the reach now of the streaming music services, and I think it's obviously a very positive sign.

Speaker Change: Yes, it's a great question I think in terms of audience usage, if you followed.

Bob Pittman: Turning now to our individual operating segments, the digital audio group generated second quarter revenues of 286 million, up 10% versus prior year, just above our previously provided guidance of up high single digits, and represented 31% of the company's total revenue. For the quarter, the digital audio group generated adjusted EBITDA of 92 million, up 9% versus prior year. The digital audio groups adjusted EBITDA margins were 32%, continuing the trend of sequential margin improvement from first to second quarter.

Speaker Change: All of the statistics, not only are more people using podcast and coming to buy casting but they are spending more time with it. So you have two growth vectors and increasing audience and an increasing usage by the existing audience and I don't see that abating anytime soon as you know that has surpassed the reach now.

Speaker Change: Streaming music services.

Speaker Change: And I think and obviously, a very positive sign I think in terms of monetization. We are still in the early days of understanding how to monetize it although I think we're making great progress on it and I think the industry is as well advertisers have a great interest to great desire and pipe gas can move a walk in the door to talk to advertisers by casting Israel as usual.

Bob Pittman: Within the digital audio group are our podcast revenues, which grew 8% versus prior year. We expect our podcast revenues to return to double digit year-over-year growth for the third quarter, the fourth quarter, and the full year. Our non-pigcast digital revenues grew 10% versus prior year, and we expect that strength to continue as well. In June iHeart was once again ranked the number one podcast publisher in the US, with more monthly downloads than the next two largest podcast publishers combined according to PodTrack.

Bob Pittman: Podcasting is usually at the top of their list of things they want to talk about. I think in terms of the economics of it, I think that's still working its way through the system, although I think it's getting better. I mean, there was a time when people were, in our opinion, paying uneconomic prices for the content of the podcasts. I think they've all pretty much acknowledged that that didn't make money, and you're seeing, you know, company after company come out with statements saying they're pulling back and being more rational there.

Speaker Change: The top of their list of things they want to talk about I think in terms of the economics of it I think that's still working through the system. Although I think its getting better I mean, there was a time in which people were.

Speaker Change: Our opinion paying an economic price.

Speaker Change: To support the content of the broadcasting I think they are all pretty much acknowledged that that didn't make money.

Bob Pittman: And our financial discipline in podcasting continues to pay off, as our podcasting EBITDA margins remain accretive to our total company adjusted EBITDA margins. As a reminder, our leadership position in podcasting is, in part, the result of the power of our broadcast radio assets. We've used those assets to build not only the podcast business, but also the iHeart Radio App, which is the number one digital radio service, and our marquee live events business, which includes the recent iHeart Radio Music Awards, and the iHeart Country Festival.

Speaker Change: And Youre seeing you know company after company come out with statements, saying, they're pulling back and being a more rational there again, that's usually the way industries go.

Bob Pittman: Again, that's usually the way industries go. When they start, there's sort of an exuberance, and people think the normal laws of economics don't apply. They do. And when they realize that, you see them beginning to normalize. I think we're sort of in the normalizing phase of that. We've had extraordinary discipline, which is why we've been able to generate a nice, healthy profit on podcasting almost since the beginning, and it continues to be an important profit driver for us, not just a revenue driver.

Speaker Change: When they start their sort of an exuberant and people think the normal laws of economics don't apply they do when they realize that youll see them beginning to normalize I think we're sort of in the normalizing phase of that we've had extraordinary discipline.

Bob Pittman: In addition to our industry leading podcast business and our digital radio streaming service, which has five times the digital listening of our closest competitor, we also have the largest social footprint of any audio service by a factor of seven. And we operate 3,000 national and local websites that reach more than 110 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 revenue growth for the company.

Speaker Change: Which is why we've been able to generate a nice healthy profitable pod casting all since the beginning.

Speaker Change: And continues to be an important profit driver for us not just revenue driver and Jim maybe just add one thing and build the power Bob said, if you look at.

Rich Bressler: And Jim, maybe just to add one thing and build upon what Bob said, if you look at, you know, there's lots of projections out there by different people that do that for a living, and, you know, most of them say the U.S. advertising and podcasting market is, you know, I don't know, in and around, you know, $2 billion, $1.8 billion, $2 billion, you know, again, depending on the When you go out, you know, three years, four years, five years, and again, they're only projections, and there's a wide range out there.

Jim Goss: There's lots of projections out there by different people that do that for a living.

Jim Goss: And most of them say half the U.

Jim Goss: U S advertising podcasts market.

Jim Goss: In and around $2 billion billion 82 bed get depending on the estimate when you go out three years four years five years, and if you get early projections and there's a wide range out there, but under any scenario. It shows our U S podcast industry, whether it's Q4.

Bob Pittman: Turning now to the multi-platform group, which includes our broadcast radio, networks, and events businesses. In the second quarter, revenues were 576 million, down 3% versus prior year, slightly better than our previously provided guidance of down mid-single digits, and down 4% excluding the impact of political advertising. Adjusted EBITDA was 104 million, compared to 162 million in the prior year quarter, due primarily to the timing of certain non-cash marketing expenses associated with our iHeart Radio Music Awards, which we discussed last quarter.

Bob Pittman: But under any scenario, it shows the U.S. podcasting industry, whether it's, you know, you know, $4 billion, $5 billion, $6 billion; it's very healthy, significant growth. And just one last thing, you know, we talk about being, you know, in one inning, and I'm not the best sports guy, you know, in terms of analogies, but the one thing that is clear is, you know, big advertisers, to Bob's point, in terms of audience and level of engagement, because the level of engagement, you know, has just recently, in the last couple years, started to come to podcasting. And so that's important because big advertisers bring in big dollars.

Speaker Change: $4 billion $5 billion $6 billion, it's very healthy significant growth and just one last thing that we talked about being in what inning and I'm not the best sports alternative analogies, but the one thing that is clear is big advertisers to Bob's point in terms of audience and level of engagement.

Bob Pittman: Additionally, we expect the multi-platform group to have positive year-over-year revenue growth in the back half of the year, yet another indication of the continuing strengthening of the ad market and our performance within it. And this year, iHeart is serving as the exclusive audio home for the NBC coverage of the 2024 Summer Olympics in Paris, with the original new podcast from the Olympic Village, as well as station streaming real-time, play-by-play coverage of the games, all in partnership with NBCU.

Speaker Change: Level of engagement.

Speaker Change: Just recently over the last couple of years started to come to podcasting and so that's important as big advertise spurring big dollars. So.

Rich Bressler: I would also just add one final point, which we make often, but this is probably worth repeating here, is that we have chosen, since the beginning, to play in the publisher segment of the podcasting industry, which is where we think profit lies. We have shied away from sales rep deals, although we have pieces of our company that do some sales reps for podcasting as part of other businesses, but as the focus of the company, we have been in the publishing sector and think that is really the right place to be.

Speaker Change: I would also just add one final point, which we make awesome, but it's probably worth repeating here is that we have chosen since the beginning to play in the publisher segment of the podcasting industry, which is where we think profit lies.

Bob Pittman: With the unparalleled reach and audience of iHeart's platforms, our coverage of the games results in significant engagement on our broadcast, digital, and podcast platforms, and invaluable cross-promotion to our partner NBCU, showing the strength of our relationship with our listeners and validating the ability of our audio assets to drive off-platform behavior, too.

Speaker Change: Shied away from sales Rep deals, although we have pieces of our company to do some sales reps for podcasting as part of other businesses.

Speaker Change: But as the focus of the company, we've been publishing sector and think that is really the right place to be.

Rich Bressler: Okay, and one other question, if I might, or a broader category, you alluded to the... Some of the discussions that might be involved in the debt maturities that are, I think the earliest ones are May of 2026. Aside from extending maturities or refinancing, are there any other options on the table, including debt equity swaps or ATMs or other things? I assume you want to get certain things done well ahead of that deadline. I'm just wondering if you might outline some of the broader implications since I know you can't describe the specifics.

Speaker Change: Okay and one other question if I may there is.

Speaker Change: The broader category.

Speaker Change: You alluded to the some.

Bob Pittman: Looking at the company as a whole, we remain focused on growth, from expanding businesses and developing new consumer and revenue opportunities to the development of programmatic platforms that enable the automated buying, selling, and planning of our broadcast radio inventory, which allow us to participate in the growing and substantial digital and programmatic tabs. And our continued focus on expense management, driving efficiencies, and structuring our business using technology, including AI, drives both short and long-term profitability.

Speaker Change: Some of the discussions that might be involved in the debt maturities that are I think the earliest ones or may of 2026. Thank you mentioned.

Speaker Change: Aside from.

Speaker Change: Extending maturities or refinancings are there any other options on the table, including debt equity swaps for Atms or other things.

Speaker Change: Jimmy wanted to get certain things done well ahead of that deadline and I'm. Just wondering if you might frame out some of the broader implications Cincinnati can't describe the specifics.

Rich Bressler: Yeah, Jim. So, thanks again for the question. No surprise, we're not going to talk about any of the details, just to say we continue to be in active discussions with a group of debt holders across the company, obviously bound by confidentiality agreements. We remain incredibly focused on improving our capital structure, working with the market to improve our capital structure, and obviously, we'll be back to you all when we have more to say on that.

Jim Goss: Yes, Jim.

Rich Bressler: And now I'll turn it over to Rich. Thank you, Bob. As I take you through our results, you'll notice that our second quarter, 2020 four results were in line, and in some cases, slightly above, are revenue and adjusted Out Q2, 2024 Consolidate revenues were up 1% year-of-year, a little above the guidance we provided of approximately flat year-of-year. Our Consolidate Direct Operating expenses increased 7.6% for the quarter. This increase was primarily driven by higher variable content costs related to the increase in digital revenues, as well as an increase to event costs related to the timing of the 2024 iHeart Radio Music Awards, which was in the second quarter of 2024 and the first quarter of 2023, as mentioned in our last earnings call.

Jim Goss: Thanks, Jeff for the question, but we're in no surprise, we are not going to talk about.

Speaker Change: Any of the details just.

Speaker Change: Just to say, we continue to be in active discussions.

Speaker Change: With the group.

Speaker Change: Debt holders across the company, obviously down by a confidentiality agreement, we remain incredibly focused on improving our capital structure.

Speaker Change: Working with the market.

Speaker Change: Two.

Speaker Change: <unk>.

Speaker Change: Our capital structure.

Speaker Change: And obviously, we'll be back to you all when we have more.

Operator: All right, appreciate your taking my questions.

Speaker Change: Alright, I appreciate your taking my questions.

Speaker Change: Thank you.

Operator: Our next question comes from Jessica Reif-Ehrlich from Bank of America Securities. Please go ahead; your line is open.

Operator: Our next question comes from Jessica Reeve-Ehrlich from Bank of America Securities. Please go ahead; your line is open.

Speaker Change: Our next question comes from Jessica Reif Ehrlich from Bank of America Securities. Please go ahead. Your line is open.

Jessica Reeve-Ehrlich: Thank you. Obviously, the two most important topics have already been covered.

Speaker Change: Thank you.

Rich Bressler: Our Consolidate SGNA expenses increased 9.6% for the quarter. The increase was driven primarily by higher non-cash marketing expense due to the timing of the iHeart Radio Music Awards, as mentioned before, as well as the cost incurring connection with executing on our course savings initiatives, partially offset by lower bad debt expense and lower bonus expense.

Speaker Change: Obviously, the two most important topics of already been covered so maybe moving on to other drivers can you maybe talk about where else you can find cost savings you've kind of gone through.

Bob Pittman: So, maybe moving on to other drivers, can you maybe talk about where else you can find cost savings? You've kind of been going through efficiencies for the last couple of years. So, just where else could you find it? And then, secondly, in terms of revenue, you guys have talked about programmatic. Can you talk about what the opportunity is?

Speaker Change: Efficiencies for the last couple of years, So just where else could you could you find something and then secondly in terms of revenue.

Speaker Change: You guys talked about programmatic can you talk about what the opportunity is.

Rich Bressler: We generated a second quarter gap operating loss of 909.7 million compared to a loss of 897.2 million in the prior year quarter. Including our gap operating loss was the impact of a $920 million non-cash and tangible impairment related to our FCC licenses and goodwill. Our second quarter adjusted if the DA was 150 million within the guidance range we provided of 140 to 160 million and compared to 191 million in the prior year quarter.

Speaker Change: We should start seeing a benefit.

Bob Pittman: Sure, let me hit the first one, Jessica, in terms of where we can find cost savings. Look, we think technology has unlocked a lot of cost savings. Technology provides efficiency. It always has. It has done so for the past 40 or 50 years.

Speaker Change: Sure Let me, let me hit the first one Jessica in terms of where we can find cost savings.

Speaker Change: We think technology has unlocked a lot of cost savings technology provides efficiency. It always has has over the past 40 or 50 years.

Bob Pittman: And we think we're in probably one of the greatest technological jumps we've seen since the mid-1990s when the internet entered the picture in terms of a productivity tool. Rich and I spend an enormous amount of our time sort of looking at the company and saying, if we started this company today, how would we structure it? How would we use technology? Given the fact that we do have some technology systems already, we do have a structure already, and then we look at it and compare it to where we are today.

Speaker Change: We think we're in probably one of the greatest technological jobs, we've seen since probably the mid ninety's when the Internet entered the picture in terms of productivity tool rich and I spend an enormous amount of our time sort of looking at the company and saying if we started this company today, how would we structured how would we use technology.

Rich Bressler: Turning now to the performance of our operating segments, and as we remind that there are slides in the earnings presentation on our segment performance. In the second quarter, the digital audio groups revenues were $286 million up 9.5% year-over-year, and they comprised 31% of our second quarter Consolidate revenues. The digital audio groups adjusted if the DA was 92 million dollars up 8.6% year-over-year and are Q2 margins with 32.2%. Within the digital audio group are our podcasting revenues of 105 million which grew 8.1% year-over-year.

Speaker Change: Given the fact that we are we do have some technology systems already we do have a structure already and then we look and compare it to where we are today and the areas where theres a big Delta between where we do it if we started today and where we are are areas that we look at and we're fortunate to have them.

Bob Pittman: And the areas where there's a big delta between where we'd do it if we started today and where we are are areas that we look at. And we're fortunate to have, I think, a very robust and talented management team and one committed to increasing efficiencies. And the efficiencies not only help the cost, but they also help everybody who works here feel better because they can get their work done better and faster and give us, I think, a competitive advantage.

Speaker Change: A very robust and talented management team and one committed to increasing the efficiencies and the efficiencies not only helped to cost, but they also help everybody who works here feel better because they can get their work done better faster.

Rich Bressler: We expect to resume double-digit revenue growth trajectory in the third quarter, the fourth quarter, and for the full year as well. And our non-podcasting digital revenues of 181 million which grew 10.3% year-over-year, reflecting the investments we have made in building out our more diversified digital capabilities. The multi-platform groups revenues were $576 million down 3.4% year-over-year, but down 4% excuse the impact of political. Adjusted if the DA was $104 million, down from $162 million in the prior year quarter, and the multi-platform groups adjusted if the DA margins were 18.1%.

Speaker Change: And give us I think a competitive advantage as you know we've invested in technology systems substantially.

Bob Pittman: As you know, we've invested in technology systems, substantially upgrading what we had and building out things like the programmatic platform. And I will say that the programmatic platform has several benefits for us. One, it unifies all of our old existing technology systems that had to do with serving, advertising, tracking inventory, billing, etc. So, we're putting together one system. So, even if you want to use it the old way, I mean, I'm going to make a phone call and interact manually, you'll be interacting with exactly the same system of inventory.

Speaker Change: Substantially upgrading what we had in building out.

Speaker Change: Things like the programmatic platform and I will say on the programmatic platform has several benefits for us one it <unk>.

Speaker Change: <unk> all of our old existing technology systems that had to do with.

Speaker Change: Serving advertising tracking inventory billing et cetera, So we're putting together one system. So even if you want to use it the old way make a phone call or manually interact youll be interacting with exactly the same system of inventory.

Rich Bressler: Turning to the audio and media services group, revenues were $70 million of 6.5% year-over-year, and adjusted if the DA was $24 million of $28.9% from $18 million in the prior year. Excluding the impact of political, the audio and media services group revenues were up 1-10th of a percent. As we've highlighted our past calls, we remain focused on financing opportunities available to us, including with respect to our debt maturities, the earliest of which is May 2026.

Bob Pittman: And then having that system like that, and as you know, we had investments like Jelly that allowed us to take our broadcast radio stations and grab their inventory, so we can deal with it the same way we can our digital products. So, it also allows us now to have a programmatic platform that allows us to be on all the important DSPs with our broadcast inventory. You know, our digital inventory, podcasting inventory, is already on most of those DSPs, but the real win for us is taking broadcast inventory and putting data on it and putting it on a system that is usable inside those DSPs, which is our programmatic platform.

Speaker Change: And then having that system like that and as you know we had investments like jelly, which allowed us to take.

Speaker Change: Take our radio broadcast radio stations and grab their inventory. So we can deal with it the same way we can our digital products. So it also allows us now to have a programmatic platform, which allows us to be on all the important DSP with our broadcast inventory.

Speaker Change: Our digital inventory broadcasting inventory.

Rich Bressler: We are engaged in active dialogue with the group holding more than a majority of our debt, and we look forward to sharing updates regarding our ongoing refinancing activities At quarter end, we had approximately $4.85 billion of net debt outstanding, which was the lowest net debt position in the history of our company. Our total liquidity was $791 million of quarter end, which includes a cash balance of $365 million. Our quarter-ending net debt to adjusted Ibit-8 ratio was 7.3 times.

Speaker Change: As already most of that.

Speaker Change: Most of those dsp's, but the real win for US is taking broadcast inventory and putting data to it and putting it on our system that are usable in.

Speaker Change: Side, those DSP, which is our programmatic platform. We also think we provide a fantastic benefit.

Bob Pittman: We also think we provide a fantastic benefit to the advertising community because they clearly want to buy on these digitally driven, digitally developed systems, and now they're trying to add everything to those platforms. And what we provide for them is the actual reach and audience they need. If you think about it, in audio, unlike video, the reach is in broadcast radio. Reach 90% of America with our AM and FM radio stations. And when you think about the biggest TV network, that's about 38%.

Speaker Change: To the to the advertising community because they clearly want to buy on these digital digitally driven digitally developed systems and now they're trying to add everything to those platforms and what we provide for them is the actual reach and audience. They need if you think about it in.

Rich Bressler: And in 2024, we expect to make progress towards our goal of a net debt to adjusted Ibit-8 ratio of approximately 4 times. In the second quarter, our free cash flow was $6 million to bet the $34 million in the prior quarter. As a reminder, our free cash flow typically builds throughout the year, and we expect to see significant sequential quarterly growth in our free cash flow at each of the remaining quarters in 2024.

Speaker Change: Audio unlike video the reach isn't broadcast radio reached.

Speaker Change: Reached 90% of America.

Speaker Change: Our our am FM radio stations and when you think about the biggest TV network, that's about 38% the biggest cable networks less than 20% Spotify Pandora. The other audio players in digital only alright, 20 and 16%.

Bob Pittman: The biggest cable network is less than 20%. Spotify, Pandora, the other audio players, and digital only are at 20% and 16% that add enabled products. So, if you're an advertiser, how do you reach the audience? And broadcast radio has that. So, there's a desire to get it in there to add the reach to these buys that you can't get without broadcast radio. So, we think there's both a need in the marketplace for what we deliver and, two, a benefit to us of joining.

Rich Bressler: We also expect to generate robust political advertising this year, and as a reminder, that political revenue is paid upfront, which will help further fuel a free cash flow generation in Q3 and Q4. Turning now to our outlook for Q3 and the full year, we expect our Q3 2024 revenues to be up mid-single digits. We are still closing the books for the month of July, but expect revenues to be up low single digits.

Speaker Change: <unk> enabled products. So if you're an advertiser how do you reach the audience.

Speaker Change: Broadcast radio has that so there is a desire to get it in there to add to reach to these buys that you can't get without broadcast radio. So we think there is both a need in the marketplace for what we deliver and to our benefit to us of joining that parade.

Rich Bressler: Turning to the individual segments for Q3, we expect the digital audio groups revenue and our podcasting revenue to both be up low double digits. We expect the multi-platform groups revenues to be down low single digits. We expect the audio media services groups revenues to be up approximately 40%. We expect to generate third quarter adjusted Ibit-8 in the range of $200 to $220 million, compared to $204 million in the prior year quarter.

Rich Bressler: Just two quick things. One thing just back on cost, Bob said. I think if you just go back over our history of not just taking advantage of, you know, technologies, but just in terms of just finding ways to be just more efficient, you know, in general, combining different operations, you know, we've got a pretty good track record of taking costs out, whether there's been specifically announced costs, programs, or just, you know, just the way we do business.

Justin: Hey, Justin.

Justin: Just two quick things just wondering just back on course.

Bob: Bob said.

Justin: I think if you just go back over our history.

Speaker Change: Not just taking advantage of technologies, but just charged just finding ways to be just more efficient.

Speaker Change: In general.

Speaker Change: Buying different operations.

Speaker Change: Yes, we've got a pretty good track record.

Speaker Change: Taking costs out whether they're specifically announced cost programs or just just the way we do business to Bob's it just well I just want to emphasize that.

Rich Bressler: We expect our full year 2024 revenues to be up mid-single digits. Our full year 2024 political revenues are currently pasting approximately 20% higher than the last presidential election cycle, and that's sequentially improved from the up 16%. We discussed in our Q1 call, which gives us confidence that this will be a record political year for us, and that will outperform the $167 million of political revenue we generated in 2020. We expect to generate full year adjusted Ibit-8 in the range of $760 to $800 million, compared to $697 million in the prior year.

Rich Bressler: And then the only other thing I'm not in on programmatic is to Bob's point: look, we know the market is there already; you just look at the amount of dollars that are going through programmatic and subset to that on things like retail media networks, which is just always a subset of that. And we are, actually, on a one DSP platform now called Magnite again, testing some proof of concepts out there. So we're actually living in the marketplace. Again, in a test, I think you and I have talked about this before in a test concept out there.

Bob: The amount of course, we've taken out and then the only other thing I might add on programmatic is to Bob's point is look we know the market is already you just look at them that is going through.

Speaker Change: Programmatic and subset to that on things like retail media networks.

Speaker Change: And which is just a subset of that and we are actually.

Mcknight: One DSP platform now called Mcknight again testing proof of concepts out there. So we're actually live in the marketplace you got in a test.

Rich Bressler: Within that guidance range, our second half revenues will be up 8 to 11% year over year, and our adjusted Ibit-8 will be up 25 to 30% year over year, turning to some of the items affecting our full year free cash flow. We expect our cash taxes to be approximately 10% of adjusted Ibit-8 in 2024. Our estimate of full year 2024 capital expenditures is now expected to be approximately $90 million. Cash restructuring expenses will be approximately $70 million this year, as we continue to execute on new opportunities to optimize our organization for efficiency and growth.

Speaker Change: I think you had talked about this before in a test concept out there and I would add one more thing.

Bob Pittman: I would add one more thing to Rich's point, because I think he's right on it, just in terms of our own culture of cost: since 2019, we've taken a substantial amount of cost out of the multi-platform group, and I think it's about 7%. And we have used those savings to fund our higher growth and new initiatives. So we constantly are looking at the reallocation of resources so we don't keep adding costs on top of costs.

Speaker Change: To Rich's point I think he's right on it just in terms of our own culture up of costs. Since 2019, we think of a substantial amount of cost out of the multi platform group.

Speaker Change: I think it's about 7% and we have used those savings to fund our higher growth and new initiatives. So we constantly are looking at reallocation of resources, we don't keep adding costs on top of cost.

Speaker Change: Thank you.

Operator: Our next question comes from Stephen Laszczyk of Goldman Sachs. Please go ahead. Your line is open.

Stephen <unk>: Our next question comes from Stephen <unk> from Goldman Sachs. Please go ahead. Your line is open.

Bob Pittman: On behalf of our entire management team, Bob and I want to thank our team members who work to deliver for their communities our advertising partners and for IHOT every day.

Stephen Laszczyk: Hey, great. Thank you. Maybe two if I could.

Bob Pittman: Bob, on the ad market, could you maybe just talk a little bit more about what you're hearing from your advertising partners that gives you confidence in the back half outlook for improvement in multi-platform? And then to the extent you see opportunity to the upside in that outlook, I'd be curious what verticals you think those opportunities could come from. And then just quickly on politics, I think you called out that your degree of confidence is increasing on the political side.

Stephen <unk>: Hey, great. Thank you maybe two if I could Bob on the AD market could you, maybe just talk a little bit more about what youre hearing from your advertising partners that gives you confidence in the back half outlook for improvement in multi platform and then to the extent you see opportunity to the upside in that outlook I'd be curious what verticals you think.

Operator: Now we will turn it over to the operator to take your questions. Thank you. If you would like to ask a question, please press star, follow by the number one on your telephone keypad. To withdraw any questions, press star one again. We'll pause for just a moment to compile the Q&A roster.

Speaker Change: They could they could come from and then just quickly on political I think you called out your degree of confidence is increasing on the political side.

Bob Pittman: What's driving that? And then, specifically in some of these battleground states, could you remind us what your footprint looks like and, to the extent you have exposure, the size and the magnitude of that? Thank you.

Jim Goss: Our first question comes from Jim Goss from Barrington Research. Please go ahead to align this open. Alright, thank you.

Speaker Change: What's driving that and then I guess, specifically in some of these battleground states could you remind us what your footprint looks like and to the extent you have exposure.

Rich Bressler: What was the reason for the podcast gains to be so depressed in the latest quarter relative, the rest of the digital, and why are you pretty confident that you can return to double-digit growth? Thank you. By the way, when we say depressed, still at 8% revenue growth and podcasting, and I think as Bob's comment, what he highlighted, two things. One is we did have a tough comparison to last year, but I think more importantly, we said back to double-digit revenue growth and podcasting for both Q3 and Q4 and for the full year growth overall.

Stephen <unk>: The sizing the magnitude of that thank you.

Bob Pittman: Sure. Look, I think in the ad market, you're probably hearing the same things we're hearing. The major holding companies are reporting their numbers. I think other companies are talking about how they're spending on advertising. I think, if anything, there's probably a benefit.

Speaker Change: Sure look I think in the AD market.

Speaker Change: We'll be hearing the same things we're hearing are.

Speaker Change: Major holding companies are reporting.

Speaker Change: Their numbers I think other companies are talking about how theyre spending advertising.

Speaker Change: If anything this probably the benefit we've heard people say they look first part of the year as they were nervous about spending and then last year. They had taken a lot of money out of mass market advertising and put it way down the bottom of the funnel to try to get the performance what Theyre I think all saying, it's sort of the buzz around the industry.

Bob Pittman: We've heard people say the first part of the year they were nervous about spending. And then last year, they took a lot of money out of mass market advertising and put it way down at the bottom of the funnel to try to get performance. What they're, I think, all saying is sort of the buzz around the industry is that, unfortunately, that's running out of steam because the top of the funnel wasn't full.

Speaker Change: Unfortunately.

Speaker Change: That's running out of steam because the top of funnel was at fault and so I think theyre looking back to a full funnel advertisers advertising partners like us they're looking to they just got to get reach they got to find some new people to talk to to get them to do whatever they are also finding that if they put advertising like ours on top.

Bob Pittman: And so I think they're looking back to full funnel advertisers, advertising partners like us. They're looking to, they just got to get in front of people. They got to find some new people to talk to, to get them to do whatever.

Rich Bressler: You know, and you'll see in this quarter we gave not just quarterly guidance, but also just in terms of the way you think about the business, not just quarter to quarter, but also we gave you full year of it at a guidance. We gave guidance for the second half of the year for the total company of 8 to 11% revenue growth in 25% that it's an evident growth, and sometimes it's just some timing aspects, but the business continues to be extremely healthy and was optimistic as we've ever been.

Speaker Change: Are there performance advertising that it indeed boost the response rate. So if you're an advertiser and you say look I'm really heavy into digital.

Bob Pittman: They're also finding that if they put advertising like ours on top of their performance advertising, it indeed boosts the response rate. So if you're an advertiser and you say, look, I'm really heavy into digital and I need some more customers, I can either go to new people, a new list, if you will, or I can try and get more out of the existing people I'm already talking to. We help them in both.

Speaker Change: And I need some more customers I can either go to new people New list, if you will or I can try and get more out of the existing people I'm already talking to we help them in both and so that I think has been a big advantage for us, but I think we called this a recovery year in the AD market at market tends to lead.

Rich Bressler: You know, let me just have a little specificity, too, that when we talked about unusual comps, we have one that was prior year related to COVID vaccine. As you can imagine, there was zero chance that was coming back for this year, so there's a few things like that that we were up against in terms of comps, which we think are an absolute anomaly and don't recur in the year. Okay, so it's more of a competition, so that's good to know.

Bob Pittman: And so that, I think, has been a big advantage for us. But I think, you know, we've called this a recovery year in the ad market. The ad market tends to lead. As you know, I think it was, you know, slowed down last year. And we see it coming back this year and see no signs of that abating.

Speaker Change: Reed.

Speaker Change: As you know I think it was slowed down last year and and we see it coming back this year and see no signs of that abating I think in terms of verticals remember.

Bob Pittman: I think in terms of verticals, remember, we have a really diverse group of advertisers, which I think is one of the strengths of this company. There's no category that's over 5% of our advertising revenue, and no advertiser over 2%. I think that will continue.

Rich Bressler: In fact, just a little bit more on the evolution of the podcasting business in terms of content costs and add demand, I think that a lot more attention is being paid to it. I'm just wondering where you think how you think these develop and where you think we are in a maturity cycle for that business. Is it still very early or are we getting, you know, a little more second or third in? Where would you say we are in terms of the development of podcasting?

Speaker Change: We have a really diverse group of advertisers, which fitness one of the strengths of this company Theres no category Thats over 5% of our advertising revenue no advertiser over 2%.

Speaker Change: That continues.

Speaker Change: We have not really seen have particular focus on verticals I think there are opportunities within almost every vertical. So we mentioned probably not COVID-19 vaccines, but other than that on a narrow one.

Bob Pittman: And we have not really seen or had a particular focus on verticals. I think there are opportunities within almost every vertical. So we've mentioned probably not COVID vaccines, but other than that, on a narrow one, they're pretty much all looking for what they do either now or planning for 25. On the political front, I think our footprint helps us enormously. If you've got nine and 10 Americans listening, we've got almost every voter within our listening population.

Bob Pittman: Well, it's a great question. I think in terms of audience usage, if you follow the statistics, not only are more people using podcasting, coming to podcasting, but they are spending more time with it. So you have two growth vectors, an increasing audience and an increasing usage by the existing audience. And I don't see that abating anytime soon. As you know, that has surpassed the reach now of the streaming music services, and I think obviously a very positive sign.

Speaker Change: They're pretty much all looking for what they do either now or planning for 25 on the political front I think our footprint helps us enormously if you've got nine in 10 Americans listening we've got almost every voter within our listening population so for political advertisers.

Bob Pittman: So for political advertisers, the question is, how do you access those people, regardless of state, city, or nationally? And, you know, it's not only candidates, but there are also a lot of these initiatives that are on the ballots, which are, you know, additional opportunities for us as well. And obviously, PACs are spending heavily this year.

Speaker Change: The question is how do you access those people.

Speaker Change: Regardless of state.

Speaker Change: City.

Speaker Change: Or nationally.

Bob Pittman: I think in terms of monetization, we're still in the early days of understanding how to monetize it, although we're making great progress on it, and I think the industry is as well. Advertisers have a great interest to great desire in podcasting. We walk into door to talk to advertisers. Podcasting usually is usually top of their list of things they want to talk about. I think in terms of the economics of it, I think that's still working through the system, although I think it's getting better.

Speaker Change: It's not only candidates, but its also a lot of these initiatives that are on the ballot.

Speaker Change: Which are additional opportunities for us as well and obviously the tax are spending heavily this year by the way if you just look at.

Rich Bressler: By the way, and if you just look at, you know, just some of the data, I mean, obviously, you know, we also, with the Fed said last week and speculation on rate cuts, probably so the unemployment data today, which was, you know, pretty encouraging. And also, I think we referred to in our remarks that we're actually pacing about 20% ahead this year. Just as a reminder, 2020 was the best presidential cycle political year we had as a company, which earned $167 million.

Rich Bressler: By the way, if you just look at, you know, just some of the data, I mean, obviously, you know, we also with the Fed said last week and speculation on rate cuts, probably so the unemployment data today, which was, you know, pretty encouraging. And also, I think we referred to in our remarks that we're actually pacing about 20% ahead this year. Just as a reminder, 2020 was the best presidential cycle and political year we had as a company, which was $167 million. And again, pacing is just an indication. It's a point in time.

Speaker Change: Just given some of the data I mean, obviously, we also like the fed said last week and speculation of rate cuts probably showed the unemployment data.

Speaker Change: Today, which was.

Bob Pittman: I mean, there was a time in which people were in our opinion paying un-economic prices for the content of the podcasting. I think they've all pretty much acknowledged that that didn't make money, and you're seeing company after company come out with statements saying they're pulling back and being more rational there. Again, that's usually the way industries go. When they start, they're sort of an exuberance, and people think the normal laws of economics don't apply.

Speaker Change: Pretty encouraging.

Speaker Change: Also I think we referred to.

Speaker Change: In our remarks that we're actually pacing about 20% ahead. This year just as a reminder, 2020 was the best presidential cycle political year, we had as a company, which was $167 million and again pacing is just an indication it's a point in time.

Rich Bressler: And again, pacing is just an indication. It's a point in time, but we're pacing 20% ahead this year. And the bulk of that, you know, is obviously the second half of the year. And I look, I think we all read the same press out there. There's not going to be anything new in terms of the fundraising that's happening on both sides, not just for the presidential election but for the Senate and the House and the down ballot amount of money. And so there just seems to be an enormous amount of money that's coming into the marketplace, coupled with what we said about the economy's own competence in the second half of the year.

Rich Bressler: But we're pacing 20% ahead this year, and the bulk of that, you know, is obviously the second half of the year. And I think we all read the same press out there. There's not going to be anything new in terms of the fundraising that's happening on both sides, not just for the presidential election but for the Senate and the House and the amount of money down ballot. So there just seems to be an enormous amount of money that's coming into the marketplace, coupled with what we said about the economies of confidence in the second half of the year.

Speaker Change: Patient, 20% this year and the bulk of that.

Bob Pittman: They do. When they realize that, you see them beginning to normalize. I think we're sort of in the normalizing phase of that. We've had extraordinary discipline, which is why we've been able to generate a nice healthy profitable podcasting almost since the beginning, and continues to be an important profit driver for not just revenue driver. And Jim, maybe you said one thing, and Bill the Pomobov said, if you look at, you know, there's lots of projections out there about different people that do that for a living.

Speaker Change: Obviously, the second half of the year and I look I think we all read the same press out there isn't anything new.

Speaker Change: The fund raising that's happening on both sides not just from a on the.

Speaker Change: Presidential election, but on the Senate and house in the down that.

Speaker Change: The amount of money. So there just seems to be an enormous amount of money that's coming to the marketplace coupled with what we said that the economy is our confidence in the second half of the year.

Operator: That's great. Thank you both.

Speaker Change: That's great. Thank you both.

Speaker Change: Okay.

Operator: Our next question comes from David Hamburger from Morgan Stanley. Please go ahead; your line is open.

Speaker Change: Our next question comes from David Hamburger from Morgan Stanley. Please go ahead. Your line is open.

Bob Pittman: And, you know, most of them say, you don't have the US advertising podcasting market. You know, in around $2 billion, $1 billion, $2 billion, you know, again, depending on the estimates. When you go out, you know, three years, four years, five years, and you're getting the only projections, and there's a wide range out there. But under any scenario, it shows US podcasting industry, whether it's, you know, $4 billion, $5 billion, $6 billion, it's very healthy, significant growth.

David Hamburger: Hi, thank you for the question. So could you unpack for us a little bit the trends and what's driving the growth of digital X podcasts? And then maybe you can help us understand better the com-

David Hamburger: Hi, Thank you for the question so could you unpack for us a little bit the trends and what's driving the growth in digital.

Speaker Change: Podcast.

David Hamburger: And then maybe you can help us understand better the complexion of the margin differential between the podcast business and the digital business broadly you did mention how tight the podcast business is back to your broadcast radio business. So maybe you can help us understand better.

Bob Pittman: And just one last thing, you know, we talk about being, you know, in one inning, and I'm not the best sports guy, you know, in terms of analogies. But the one thing that is clear is, you know, big advertisers, you know, to Bob's point in terms of audience and level of engagement, because the level of engagement, you know, have just recently over the last couple of years started to come to podcasting. And so that's important because big advertisers bring big dollars.

Speaker Change: The complexion of the margins in the cash business and how you see those evolving.

Bob Pittman: Well, let me start with the margin issue that I think in podcasts, as we said, we're in the publisher side of the business, which has much more...

Speaker Change: Well, let me start with the margin issue that I think in podcast as we said we're in the publisher side of the business, which has a much better margin and.

Speaker Change: We havent being the publisher, obviously is a better margin business in the rest of digital we have some things like our own streaming service in which we have a very high margin because that's all of our product, but we also resell some other products, even including OTT those are at lower margins. So it's a mix of products there and.

Rich Bressler: So I would also just have one final point which we make awesome with this probably work we're repeating here is that we have chosen since the beginning to play in the publisher segment of the podcasting industry which is where we think profit lies we have shy away from sales rep deals although we have pieces of our company to do some sales reps for podcasting as part of other businesses but as the focus of the company we've been in publishing sector and think that is really the right place to be okay and one other question if I might bear a broader category you alluded to the some of the discussions that might be involved in the debt maturities that are I think the earliest ones are May of 2026 think you mentioned aside from extending maturities or refinancing that are there any other options on the table including debt equity swaps or ATMs or other things I assume you want to get certain things done well ahead of that deadline and just to wonder if you might frame out some of the broader implications since and I can't describe the specifics Yeah Jim so thanks again for the question but we're no surprise we're not going to talk about you know any of the details just just to say we continue to be an active discussions with a group of debt holders you know of course the company obviously bound by confidentiality agreements we remain incredibly focused on you know improving our capital structure working with the market to improve our capital structure and obviously we'll be back to you all we have more to send that All right appreciate you're taking my questions Thank you Our next question comes from Jessica Erlich from Bank of America Securities please go ahead your line is open Thank you obviously the two most important topics have already been covered so maybe moving on to other drivers can you maybe talk about where else you can find cost savings you've kind of been going through efficiencies for the last couple of years so just where else could you can you find something And then secondly in terms of revenue you guys just talked about programmatic can you talk about what the opportunity is when we should start seeing a benefit Sure let me let me hit the first one Jessica in terms of where we can find cost savings Look we think technology has unlocked a lot of cost savings technology provides efficiency it always has has over the past 40 or 50 years And we think we're probably one of the greatest technological jobs we've seen since probably the mid-90s when the internet entered the picture in terms of a productivity tool Rich and I spend an enormous amount of our time sort of looking at the company and saying if we started this company today how would we structure it how would we use technology Given the fact that we are we do have some technology systems already we do have a structure already and then we look and compare it to where we are today And the areas where there's a big delta between where we do it if we started today and where we are our areas that we look at And we're fortunate to have a I think a very robust and talented management team and one committed to increasing the efficiencies And the efficiencies not only help the cost but they also help everybody who works here feel better because they can get their work done better faster And give us I think a competitive advantage as you know we've invested in technology systems substantially upgrading what we had and building out things like the programmatic platform And I will say on the programmatic platform has several benefits for us one it unifies all of our old existing technology systems that had to do with serving advertising, tracking inventory, billing, etc. So we're putting together one system so even if you want to use it the old way I mean I'm going to make a phone call manually interact you'll be interacting with exactly the same system of inventory And then having that system like that and as you know we had investments like jelly which allowed us to take our radio set broadcast radio stations and grab their inventory so we can deal with it the same way we can our digital products So it also allows us now to have a programmatic platform which allows us to be on all the important DSPs with our broadcast inventory You know our digital inventory, podcasting inventory is already almost of that most of those DSPs But the real win for us is taking broadcast inventory and putting data to it and putting it on a system that is usable inside those DSPs which is our programmatic platform We also think we provide a fantastic benefit to the advertising community because they clearly want to buy on these digital, digitally driven, digitally developed systems and now they're trying to add everything to those platforms And what we provide for them is the actual reach and audience they need if you think about it in an audio unlike video the reach is in broadcast radio reach 90% of America with our AMFM radio stations and when you think about the biggest TV network that's about 38% the biggest cable network's less than 20% Spotify, Pandora, the other audio players and digital only are at 20% and 16% for the ad enabled products so if you're an advertiser how do you reach the audience And broadcast radio has that so there's a desire to get it in there to add the reach to these buys that you can't get without broadcast radio So we think there's both a need in the marketplace for what we deliver and to benefit to us of joining that parade and just two quick things, just one thing just back on the course, you know, Bob said, I think if you just go back over our history during not just taking advantage of, you know, technologies, but just in terms of just finding ways to be just more efficient, you know, in general, combining different operations, you know, we've got pretty the track record of taking course out, whether there's been specifically, I mean, an ounce course programs, or just, you know, just the way we do business to Bob said, just really just what emphasized that in terms of the amount of course we've taken out.

Speaker Change: And we try and manage that mix very carefully.

Speaker Change: <unk> the margin for us if a seller can get $1000, where are you going to put it well first thing you have to do is put it somewhere that's going to be really great for the client, but within that we also want to manage the mix. So it's also good for our business and we're also very cognizant of margin yeah.

Rich Bressler: Yeah, and by the way, just, you know, building upon that, David, you know, so if you look at our podcasting business, I'm sorry, our Digital Business X podcasting, which we had a very strong quarter, I think that really should just, you know, continue to demonstrate, and we've been talking about this, the growth, and we, and I think we've actually said, historically, we expect that growth to or Yes, you know, we talk a lot about podcasting, but to Bob's point, whether it's streaming, websites, social extensions out there, and there are, by the way, a range of, I think what we've said publicly, 40 to 70 percent EBITDA margins for those businesses.

Rich Bressler: Yeah, and by the way, just building upon that, David, so if you look at our podcasting business, I'm sorry, our Digital Business X podcasting, which we had a very strong quarter, I think that really should just continue to demonstrate, and we've been talking about this, the growth, and I think we've actually said historically that we expect that growth to demonstrate to everyone the diversity of our digital business offerings. Yes, we talk a lot about podcasting, but to Bob's point, whether it's streaming, websites, and social extensions out there, and there are, by the way, a range of, I think what we've said publicly, 40 to 70% EBITDA margins for those businesses.

Speaker Change: And by the way just building upon that David.

Speaker Change: If you look at our podcast business.

Speaker Change: I'm, sorry, our digital vision, Thats podcast, which we had a very strong quarter I think that really should just continue to demonstrate and we've been talking about this the growth and I think we've got.

Speaker Change: What we said historically, we expect that growth to.

Speaker Change: Or.

Speaker Change: Demonstrate to everyone. The diversity of our digital business software, yes, we talked a lot about podcasting, but to bobs point, whether it's streaming websites social extensions out there and there are by the way a range of I think what we've said publicly is 40% to 70% EBITDA margins for those businesses.

Rich Bressler: Obviously, and we don't talk about a lot of the details, but just pretty clearly, the higher end margin business, and Bob talked about publishing or podcasting and things, when you own substantially all of the IP that you have in the monetization of that, and then the other extreme, when you engage with third parties to provide a total solution to clients out there that won't be as hot on the higher end of that margin business.

Rich Bressler: Obviously, and we don't talk about a lot of the details, but just, you know, pretty clearly, the higher-end margin business, and Bob talked about publishing or podcasting and things, when you own or substantially own all of the IP that you have and the monetization of that, and then the other extreme, when you engage with third parties to provide a total solution to clients out there that won't be as hot on the higher end of that

Speaker Change: Obviously, we don't have a lot of details but just.

Speaker Change: Clearly the higher margin business and Bob talked about publishing a podcast things when you own as substantially all of the IP that you have a monetization of that and then the other extreme when you engage with third party to provide a total solution.

Speaker Change: Clients out there.

Speaker Change: It won't be as hard on the higher end of that margin business and then the only thing I'd say about podcast groups you've talked about are just again to reiterate.

Bob Pittman: And then the only thing I'd say about podcasting, since you've talked about it just once, to reiterate the example, yes, the strength of our podcasting business, but just as a reminder, things like, we made a strategic decision years ago that every seller had the ability to sell anything, all our products, anytime, anywhere. And so if you're one of our thousand plus sellers in this company, you're out there not just selling broadcast, not just selling streaming, but you've got the ability to sell podcasts every single day in terms of taking advantage of it.

Rich Bressler: And then the only thing I'd say about podcasting, as you've talked about, just again, to reiterate the example, yes, the strength of our podcasting business, but just as a reminder, things like, you know, we made a strategic decision years ago that every seller has the ability to sell anything, all our products, any time, anywhere, and so if you're one of our thousand-plus sellers in this company, you know, you The ability, I think there are something, I don't know, like three million or so, four million podcasts in the United States right now.

Speaker Change: Example, we have the strength of our podcasting business, but just as a reminder, you know things like.

Speaker Change: We made a strategic decision years ago that every cell that has the ability to sell anything all of our products.

Speaker Change: Any time anywhere and so if you're one of our 1000 plus sellers in this company.

Speaker Change: Youre out there not just selling broadcast not just selling streaming but <unk> got the ability to sell podcast every single day in terms of taking advantage of it the ability I think theres something right around about $3 million or so 4 million podcast in the United States right now you've got the greatest podcast in the world.

Bob Pittman: The ability, I think there's something, I don't know, like 3 million or so, 4 million podcasts in the United States right now. You've got the greatest podcasts in the world, but you don't have awareness about podcasting, not just from podcast to podcast but using our broadcast airways to promote podcasting out there. So I think getting a little bit at your question, how we think about podcasting and incorporating it into our business, they really are tied to the benefits of other businesses also.

Rich Bressler: You've got the greatest podcasting in the world, but you don't have awareness about podcasting, not just podcast-to-podcast, but using our broadcast airwaves to promote podcasting out there. So, you know, I think getting a little bit at your question, how we think about podcasting and incorporating to our business, you know, they really are, you know, tied to the benefits of our other businesses also. You know, I would add one more thing, and you didn't specifically ask this, but I think it's an important part inherent in your question, is you're also seeing, I think, in the performance of the digital group as a whole, and certainly in the digital, even, ex-podcasting, is you're beginning to see our clap-to-clap We talked about the platforms we're building out to try and get the broadcast radio onto the digital buying systems.

Speaker Change: Sure.

Speaker Change: That podcasting not just podcast of podcast, but using our broadcast airwaves optical both hot testing out there. So I think getting a little bit at your question, how we think about podcasting.

Speaker Change: Cooperating to our business they really are.

Speaker Change: Tied to the benefits of our other businesses also.

Bob Pittman: You know, I would add one more thing, and you didn't specifically ask this, but I think it's an important part inherent in your question, is you're also seeing, I think, in the performance of the digital group as a whole, and certainly in the digital, even ex-podcasting, that you're beginning to see our platform... We talked about the platforms we're building out to try and get the broadcast radio onto the digital buying systems Well, we've already got a lot of our digital content onto the digital buying systems, and I think you're beginning to see the impact of that in terms of growth.

Speaker Change: Add one more thing and you didn't specifically ask this but I think it's an important part inherent in your question is Youre also seeing I think in the performance of the digital group as a whole and certainly in the digital even ex podcast thing is you're beginning to see our platforms. We.

Speaker Change: <unk> talked about.

Speaker Change: The platforms, we are building out to try and get.

Speaker Change: The broadcast radio onto the digital buying systems, where we've already got a lot of our digital onto the <unk>.

Rich Bressler: Well, we've already got a lot of our digital content onto the digital buying systems, and I think you're beginning to see the impact of that in terms of growth. And so, you know, if you sort of say, can you show me some early value of this investment you've made in Triton and Jelly and places like that, yes, you know, look at the digital numbers, and we expect that to continue to grow in terms of importance, not only for our broadcast radio but also for our digital as well.

Speaker Change: Digital buying systems, and I think youre beginning to see the impact of that in terms of the growth and.

Bob Pittman: And so, you know, if you sort of say, can you show me some early value of this investment you've made in Triton and Jelly and places like that, yes, you know, look at the digital numbers, and we expect that to continue to grow in terms of importance, not only for our broadcast radio but also for our digital as well.

Speaker Change: So if you sort of say can you show me some early.

Speaker Change: Now you of this investments you've made in Triton and jelly and places like that.

Speaker Change: Yes.

Speaker Change: Look at the digital numbers and we expect that to continue to grow in terms of importance not only for our broadcast radio but also for our digital as well.

Speaker Change: Thank you.

Operator: Our last question will come from Marlane Pereiro from Bank of America Securities. Please go ahead; your line is open.

Speaker Change: Our last question will come from Merlin Pereiro from Banc of America Securities. Please go ahead. Your line is open.

Marlane Pereiro: Great, thank you for taking my questions. I just want to touch on the full year adjusted EBITDA guide of 760 to 800. Can you just, you know, I touched on this a bit, but walk through any one-time items that are impacting that guide for this year?

Merlin Pereiro: Thank you for taking my questions I just wanted to touch on the full year adjusted EBITDA Guide of 760 to 77 eight excuse me 60.

Speaker Change: 60 to 800.

Speaker Change: Can you just I know you touched on this a bit but walk through any onetime items that are impacting that guide for this year.

Rich Bressler: There are no one-time items that are impacting that guide for the year. We gave full-year guidance. We obviously also gave Q3 guidance within that number. So if you just kind of do some math and you look at kind of ranges, you'd look at Q3 in the 205 range or something, just, you know, even though we gave a range out there, pick any number you want. Then you look at Q4, which would kind of be around 320, I think if you just use the midpoint of your overall consensus. And I'm going to go back in terms of giving all of you, hopefully, the confidence that we have in those numbers.

Speaker Change: Uh huh.

Speaker Change: There are no one time items.

Speaker Change: It's worth that are impacting that guy.

Speaker Change: For the year, we just we gave.

Speaker Change: Full year guidance, while we obviously also gave Q.

Speaker Change: Q3 guidance, we did.

Speaker Change: In that number so if you just kind of do some.

Speaker Change: Matt.

Matt: When you look at kind of the ranges.

Matt: Look at Q3, and the 205 range or something just even though we gave a range out there pick any number you want.

Speaker Change: Then you look at Q4, we should kind of be around.

Speaker Change: 320, I think if you just use the midpoint of your overall consensus and I'm going to go back in terms of giving.

Speaker Change: All of you hopefully.

Matt: The confidence that we have in those numbers.

Rich Bressler: You know, again, the bulk of our political revenue is in Q3 and Q4. And I think we've talked about where we are with pacing. By the way, the last time we spoke to you, at the end of Q1 earnings, I think we were pacing up about 16 percent year-over-year in political. And now we're pacing up about 20 percent year-over-year in political. And I think, as Bob talked about also in his comments, we've just continued to see improvement in the business from Q1 to Q2.

Matt: Again, the bulk of our political revenue is in Q3, and Q4 and I think we've talked about where we are pacing by the way. The last time, we all spoke to you.

Matt: Again Q1 earnings I think we were pacing up about 16% year over year political and now we're pacing up about 20%.

Matt: Year over year in political and I think as Bob talked about also in his comments, we've just continued to see improvement.

Bob: Business from Q1 to Q2.

Rich Bressler: We expect to see it the rest of the year. And I think just all of us watching the environment we're in, again, with the Fed, we're talking about the rate cuts out there, and the employment information today does nothing but reinforce our confidence in the back half.

Speaker Change: Expect to see the rest of the year and I think just all of us watching the environment. We're in again with fed we're talking about the rate cuts out. There then the employment information today does.

Speaker Change: It does nothing but we enforce.

Speaker Change: Confidence in the back half of the year.

Marlane Pereiro: Got it, that's helpful, and then if we do think about the full year number including political, so if we take the high end, let's say 800, we assume political is 170, although I realize you commented it was pacing 20% higher, but just back of the envelope, those numbers imply roughly 630. So how should we think about, like, how much do you attribute that to crowding out? So, for example, like, you know, how much is that politics actually crowding out the core?

Speaker Change: Got it that's helpful. And then if we if we do think about the full year number.

Speaker Change: Excluding political so if we take the high end, let's say 800, we assume political is 170, although I realize you commented was pacing, 20% up but just back of the envelope those number of high roughly 630.

Speaker Change: How should we think about like how much do you attribute that to crowd out.

Speaker Change: For example, like how much of that political actually crowding out core advertising.

Rich Bressler: Yeah, I mean, you really can, and I appreciate the question. Remember, you know, this is inventory. So if we didn't sell it to Politico, we'd be selling the inventory out there. We'd be, you know, out there selling the inventory. I think one of the biggest benefits of Politico is that, quite frankly, we expect to have a very strong free cash flow year. And think about, by the way, Politico is another category. You know, Bob talks about all the categories.

Speaker Change: Yes, I mean, you really can't and I. Appreciate your question remember.

Speaker Change: This is inventory so we didn't sell it to political.

Speaker Change: We'd be selling the inventory.

Speaker Change: Yes.

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: Selling the inventory I think one of the biggest benefits of political quite frankly, we expect to have a very strong free cash flow year and think about by the way political is another category that talks about talks about all the categories.

Rich Bressler: You know, Politico, you know, if you think about it in the simplest terms, another category, the great thing about that category is that we pay out cash up front, which is the only category we have that does that, but you really can't separate them out in that way. I think what I will say about Politico, because you do see a better performance in the past years, is that it does put extra pressure on the inventory. There's extra demand; there's a category that comes every other year. That's helpful because of not only what it does for Politico but what it does for

Speaker Change: And do you think about it as simple as charges in other category. The great thing about that category as we have paid a cash upfront.

Rich Bressler: And then the only thing I'm not in on programmatic is to Bob's point is look, we know the market is there already, you just look at the amount of dollars that are going through programmatic and subset to that on things like retail media networks, and which is just over a subset of that. And we are actually there are on a one DSP platform, miracle magnet are getting testing some proof of concepts out there.

Speaker Change: <unk> is the only category, we have that does that but you really can't do separate out in that way I think.

Speaker Change: I'll say about political because you do see a better performance in political years is that it does put extra pressure.

Speaker Change: On the inventory there was extra demand there is a category that comes every other year. That's helpful. Because of not only what it does for political but what it does for everyone else.

Rich Bressler: And are there any other expenses? Offcut Guidance, perhaps that you could provide? No, there is no real difference.

Speaker Change: Got it and are there any other expenses.

Rich Bressler: And are there any other expenses? No, there is no real difference.

Rich Bressler: So we're actually live in the marketplace again in a test, I think you're not talked about this before in a test concept out there. I would add one more thing on the, you know, it's a richest point because I think you see right on it just in terms of our own culture of cost is since 2019, we take a substantial amount of cost out of the multi-platform group. And I think it's about 7% and we have used those savings to fund our higher growth and new initiatives. So we constantly are looking at reallocation of resources, we don't keep adding costs on top of cost.

Speaker Change: Cut guidance, perhaps that you could provide or something potentially that we could think about.

Operator: Thank you.

Rich Bressler: I'm going to go back to, I think it was Jessica's question. I think it was Jessica's question a couple of questions ago. I just think, you know, not even just looking at all the words, and Bob talked about technology and taking advantage of it. I would just, you know, look at our track history over the last years. And Bob, I think, highlighted that we've taken out 7% as a multi-platform group and both reinvested in our Fed, our high-growth businesses in the digital area, starting with podcasting.

Jessica: No no real gets harder to go back to I think Jessica's question I think was just to your question.

Speaker Change: Couple of questions ago, I just state.

Speaker Change: Not even just looking at all words, and Bob talked about technology, and taking advantage I would just look at our track history over the last years and Bob I think highlighted we've taken out 7% as a multi platform group and both we invested in our set our high growth businesses in the digital area starting with podcasts.

Rich Bressler: But also, I'd highlight, we've also brought a lot of that down to the bottom line for the benefit of all of our stakeholders. We've generated a significant amount of free cash flow, too. So, we've both invested and brought free cash flow down to the bottom line. But, you know, taking out expenses is a way of life down here, as I think all of our management team, who have done a great job working with us, would tell you. By the way, on cost cuts, I want to add one other thing. It's not only that we are always looking for more efficiency, but when you try new things, you add additional expenses.

Speaker Change: I'd also like to highlight we've also brought a lot of that down to the bottom line for the benefit of all of our stakeholders will generate a significant amount of free cash flow too. So we both invested.

Rich Bressler: But also, I'd highlight, we've also brought a lot of that down to the bottom line for the benefit of all of our stakeholders. We've generated a significant amount of free cash flow, too. So we've both invested a number of free cash flows down to the bottom line. But, you know, taking out expenses is a way of life down here, as I think all of our management team, which has done a great job working with us, would tell you.

Stephen Lashick: Our next question comes from Stephen Lashick from Goldman Sachs, please go ahead and line is open. Hey, great. Thank you. Maybe two if I could Bob on the end market, could you maybe just talk a little bit more about what you're hearing from your advertising partners that gives you confidence in the back half outlook for improvement in multi-platform. And then to the extent you see opportunity, you know, to the upside in that outlook, I'd be curious what verticals you think they could they could come from.

Speaker Change: The free cash flow down to the bottom line, but.

Speaker Change: Taking out expenses as a way of life I think all of our management team, which has done a great job working with us.

Rich Bressler: By the way, on cost cuts, I want to add one other thing. It's not only that we are always looking for more efficiency, but when you try new things, you add additional expenses. They don't all work out 100%.

Speaker Change: On the cost cuts I want to add one other thing it's not only are we always looking for more efficiency.

Speaker Change: But when you're trying new things.

Stephen Lashick: And then just quickly on political and you called out your degree of confidence is increasing on the political side. What's driving that? And then I guess specifically in some of these battleground states, could you remind us what your footprint looks like and to defend you have exposure the sizing and magnitude of that. Thank you.

Speaker Change: Add additional expenses.

Bob Pittman: And I think what's critical is to have the discipline as managers to constantly be saying, okay, we said we're going to spend this money to get X. Did we get X? If we didn't get X, let's weed the garden. Let's get rid of that. And I think one of the problems in many companies, and it's something I think every company fights, is that you tend to keep stuff because you go, well, it did something for me.

Speaker Change: They don't 100% all work out and I think what's critical is to have the discipline as managers to constantly be saying, Okay. We said, we're going to spend this money to get X did we get X. If we didn't get access weed the garden, let's get rid of that and I think one of the problems in many companies and it's something that I think every company fights.

Bob Pittman: Sure. Look, I think of the ad market, you know, you're probably hearing the same things, we're hearing the major holding companies reporting their numbers. I think other companies are talking about how they're spending advertising. I think if anything, just probably the benefit we first people say they look first part of the year as they were nervous about spending. And in last year, they had taken a lot of money out of mass market advertising and put it way down on bottom of the funnel to try to get the performance.

Speaker Change: As you tend to keep stuff because you go well it did something for me well it didn't do what we said it was going to do and therefore, it's not worth that expenditure and having the discipline to continue to take out what didnt work frees up a lot of cost and keeps your costs from getting below that as well.

Bob Pittman: Well, it didn't do what we said it was going to do, and therefore, it's not worth that expenditure. And having the discipline to continue to take out what didn't work frees up a lot of costs and keeps your costs from getting bloated as well.

Speaker Change: Yeah.

Operator: Well, I appreciate the time. Terry. That's all I have. Great, thank you. I just wanted to make sure there were no other questions, and if not, you know, Bob and I and the entire management team...

Speaker Change: Great well I appreciate the time and the commentary that's all I have thank you.

Rich Bressler: Terry, that's all I have. Great, thank you. I just wanted to make sure there are no other questions, and if not, Bob and I and the entire management team, you know, thank you all for taking the time to listen and focus on iHeart, and we are all available for questions following up with Michael McGuinness and the rest of the gang. So, thank you all.

Bob Pittman: What they're, I think, all saying it's sort of the buzz around the industry is, unfortunately, that's running out of steam because the top of the funnel wasn't full. And so I think they're looking back to full funnel advertisers advertising partners like us. They're looking to, they just got to get reached, they got to find some new people to talk to, to get them to do whatever. They're also finding that if they put advertising like hours on top of their performance advertising that it indeed boosts the response rate.

Speaker Change: Just wanted to make sure there are no other questions.

Operator: This concludes today's call. Thank you for your participation. You may now disconnect.

Speaker Change: And if not.

Speaker Change: Bob and I and the.

Bob: Entire management team.

Speaker Change: Thank you all for taking the time to listen.

Speaker Change: <unk>.

Speaker Change: And we are all available for questions following up Mike Mcginnis and the rest of the get so thank you all.

Speaker Change: This concludes today's call. Thank you for your participation you may now disconnect.

Speaker Change: Please wait the conference will begin shortly.

Bob Pittman: So, you know, if you're an advertiser and you say, look, I'm really heavy in the digital and I need some more customers. I can either go to new people, new list, if you will, or I can try and get more out of the existing people I'm already talking to. We help them in both. And so that, I think, has been a big advantage for us.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Bob Pittman: But I think, you know, we've called this a recovery year in the ad market. Ad market tends to lead. As you know, I think it was, you know, slowed down last year. And we see it coming back this year and see no signs of that abating. I think in terms of verticals, remember, we have a really diverse group of advertisers, which clinics won the strengths of this company. There's no category that's over 5% of our advertising revenue, no advertiser, over 2%.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: [music].

Bob Pittman: I think that continues. And we have not really seen, have particular focus on verticals. I think there are opportunities within almost every vertical. So we mentioned probably not COVID vaccines, but other than that on a narrow one, they're pretty much all looking for what they do. Either now or planning for 25.

Speaker Change: Yes.

Speaker Change: Okay.

Bob Pittman: On the political front, I think our footprint helps us enormously. If you've got nine and 10 Americans listening, we've got almost every voter within our listening population. So for political advertisers, the question is how do you access those people regardless of state, city, or nationally? And, you know, it's not only candidates, but it's also a lot of these initiatives that are on the mallets, which are, you know, additional opportunities for us as well. And obviously the packs are spending heavily this year.

Rich Bressler: By the way, and if you just look at, you know, just even some of the data, I mean, obviously, you know, we also with the defense set last week and speculated some rate cuts, probably so you're going to fund the data today, which was, you know, pretty encouraging. And also, I think we referred to in our remarks that were actually pacing about 20% ahead this year or just as remind their 2020 was the best presidential cycle political year we had as a company, which was $167 million.

Rich Bressler: And again, pacing is just an indication it's a point in time, but we're pacing 20% ahead this year. And the bulk of that, you know, is obviously the second half of the year. And I think we already the same press out there is not committing new in terms of fundraising that's happening on both sides, not just from a, on the presidential election, but on the Senate and the House and the downbound amount of money. So there just seems to be an enormous amount of money that's coming to the marketplace coupled with what we said about the economies of competence.

Stephen Lashick: [inaudible] That's great, thank you both.

David Hamburger: Our next question comes from David Hamburger from Morgan Stanley. Please go ahead, your line is open. Hi, thank you for the question. So, could you pack for us a little bit the trends in what's driving the growth in digital ex-podcast? And then maybe you can help us understand better the complexion of the margin differential between the podcast business and the digital business broadly. You did mention how tied the podcast business is back to your broadcast radio business.

David Hamburger: So, maybe you can help us understand better the complexion of the margins in the podcast business and how you see those evolving. Let me start with the margin issue that I think in podcast is we said we're in the publisher side of the business which has the much better margin. And I have been the publisher obviously is a better margin business. In the rest of digital we have some things like our own streaming service in which we have a very high margin because that's all of our product.

David Hamburger: But we also resell some of the products and even including OTT, those are lower margins. So, it's a mix of products there. And we try and manage that mix very carefully to maximize the margin for us if a seller can get a thousand dollars where you're going to put it. Well, first thing you have to do is put it somewhere that's going to be really great for the client. But within that we also want to manage the mix.

David Hamburger: So, it's also good for our business and we're also very cognizant of the margin. And by the way, just building upon that, David, you know, so if you look at our podcasting business, I'm sorry, digital business is podcasting, which we had a very strong quarter. I think that really should just continue to demonstrate and we've been talking about this to growth and I think we've actually said historically we expect that growth to demonstrate everyone the diversity of our digital business offering.

David Hamburger: Yes, you know, we talked a lot about podcasting, but the Bob's point, whether streaming websites, social extensions out there. And there are, by the way, a range of I think what we said publicly is 40 to 70% EBITDA margins for those businesses. Obviously, and we don't talk about a lot of the details, but just, you know, pretty clearly the higher end margin business and about talking about publishing a podcast and things when you own a substantially on all of the IP that you have a monetization or that.

David Hamburger: And then the other extreme when you engage with third party to provide a total solution to clients out there that will be as hot on the high run to that margin business. And then the only thing I'd say about podcast is you've talked about it just again to reiterate the example. Yes, the strength of our podcasting business, but just as a reminder, you know, things like, you know, we made a strategic decision years ago that every seller has the ability to sell anything all products any time anywhere.

David Hamburger: And so if you're one of 1000 plus sellers in this company, you know, you're out there not just selling broadcast, not just selling streaming, but you've got the ability to sell podcast every single day in terms of taking advantage of it. The ability, I think there's something I don't like three million or so, four million podcasts in the United States right now. You've got the greatest podcast in the world, but you don't have awareness about podcasting not just podcast to podcast, but using our broad cast their ways to promote podcasting out there.

David Hamburger: So, you know, I think getting a little bit at your question, how we think about podcasting and incorporating to our business, you know, they really are tied to the benefits of one of the businesses also. You know, I would have one more thing and you didn't specifically ask this, but I think it's an important part in inherent in your question is you're also seeing I think in the performance of the digital group as a whole.

David Hamburger: And certainly in the digital even ex podcasting is your beginning to see our platforms. We talked about the platforms we're building out to try and get the broadcast radio on to the digital buying systems. Well, we've already got a lot of our digital on to the digital buying systems, and I think you're beginning to see the impact of that in terms of the growth. And so, you know, if you sort of say can you show me some early value of this investment you've made in Triton and Jelly in places like that. Yes, you know, look at the digital numbers and we expect that to continue to grow in terms of importance not only for our broadcast radio, but also for our digital as well.

Bob Pittman: Thank you.

Marlane Pereiro: Our last question will come from Marlane Pereiro, from Bank of America Securities. Please go ahead to the line is open. Great. Thank you for taking my questions. I just want to touch on the full year because there are no one-time items that are impacting that guy for the year. We gave full year guidance. We obviously also gave two, three guidance within that number. So if you just do some math, when you look at kind of ranges, you look at Q3 and the 205 range or something, even though we gave a range out there, or pick any number you want, then you look at Q4, which is kind of the around 320.

Marlane Pereiro: I think if you just use the midpoint of your overall consensus, and I'm going to go back in terms of giving all of you, hopefully the confidence that we have in those numbers. Again, the bulk of our political revenue is in Q3 and Q4, and I think we've talked about where we are pacing. By the way, the last time we all spoke to you. Again, Q1 earnings, I think we were pacing up about 16% year-over-year political, and now we're pacing up about 20% year-over-year in political.

Marlane Pereiro: And I think as Bob talked about also in his comments, we've just continued to see improvement in the business from Q1 to Q2. We expect to see the rest of the year. And I think just all of us watching the environment we're in again, we're fed. We're talking about the rate cuts out there and the employment information today. It does not mean that we enforce our confidence in the back after the year.

Marlane Pereiro: It's not helpful. And then if we do think about the full-year number excluding political, so if we take the high end, let's say 800, we assume political is 170, although I realize you commented it was pacing 20% up, but just back of the envelope, those numbers in high, roughly 630. So how should we think about how much do you attribute that to crowd out? So for example, how much is that political actually crowding out for advertising?

Marlane Pereiro: Yeah, I mean, you really can, and I appreciate your question. Remember, you know, this is inventory. So we didn't sell it to political. It was that we'd be selling the inventory out there. We'd be out there selling the inventory. I think one of the biggest benefits of political, quite frankly, we expect to have a very strong free cash flow year. And think about, by the way, political is another category, you know, about talks about all the categories, you know, political, you know, you do about it, simplest terms, you know, the category.

Marlane Pereiro: The great thing about that category is we have paid our cash upfront, which is your own category. We have to does that, but you really can't do separate out of that way. I think you what we'll say about political, but you do see a better performance in political years is that it does put extra pressure on the inventory. There's expert demand. There's a category that comes every other year. That's helpful because of not only what it does for political, but what it does for.

Marlane Pereiro: What else? Are there any other expenses for cost-cut guidance perhaps that you could provide or something potentially that we could think about? No, no real good. I'll go back to what I think was Jessica's question. It was Jessica's question a couple of questions ago. I just think, you know, not even just looking at all words and talk about technology and take your bed. I would just, you know, look at our touch history over the last years and Bob, I think highlight it.

Marlane Pereiro: We've taken out seven percent as a multi-platform group and both we invested in our fed-out high growth businesses in the digital areas started with podcasting, but also at highlight, we've also brought a lot down to the bottom line for the benefit of all of our stakeholders. We're generally significant amount of food cash for our two. So we both invested, I'm going to feed cash plugged out through the bottom line, but, you know, you know, taking out expenses is a way of life out here.

Marlane Pereiro: As I think all of our management teams which has done a great job working with us, we're telling you about the cost cuts. I want to have one other thing. It's not only are we always looking for more efficiency, but when you try new things, you add additional expenses, they don't 100% all work out. And I think what's critical is to have the discipline as managers to constantly be saying, okay, we said we're going to spend this money to get X, did we get X?

Marlane Pereiro: If we didn't get X, let's weed the garden, let's get rid of that. And I think one of the problems in many companies, and it's something I think every company fights, is you tend to keep stuff because you go, well, it did something for me. Well, it didn't do what we said it was going to do. And therefore, it's not worth that expenditure and having the discipline to continue to take out what didn't work, freeze up a lot of costs and keeps your costs from getting below it as well.

Marlane Pereiro: Great. Well, I appreciate the time and the commentary that's all I have. Great. Thank you. Just wanted to make sure to know the questions. And if not, you know, Bob and I and the entire management team, you know, thank you all for taking the time to listen and focus on our heart. And we are all available for questions following up. Mike McGinnis and the rest of the get. So thank you all. This concludes today's call. Thank you for your participation. You may now disconnect. Please wait. The conference will begin shortly. Thank you.

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