Audacy, Inc. (AUD): history, ownership, mission, how it works & makes money

A Brief History of Audacy, Inc. (AUD)

Foundation and Early Years

Audacy, Inc., originally known as Entercom Communications Corp., was founded in 1968. The company started as a small radio station operator and steadily grew through a series of acquisitions. As of 2020, Audacy operated 235 radio stations and offered various digital audio services.

Acquisition Strategy

Throughout the 2000s and into the 2010s, Audacy implemented an aggressive acquisition strategy:

• In 2014, Entercom acquired 11 stations from Lincoln Financial Media for approximately $105 million.
• In 2017, Entercom merged with CBS Radio in a transaction valued at $1.8 billion, dramatically increasing its market presence.
• On November 19, 2020, Entercom rebranded to Audacy, Inc., reflecting its evolving focus on digital audio content.

Financial Performance

Audacy’s financial performance has shown significant developments over the years. Some key figures include:

Digital Transformation

Audacy has heavily invested in digital platforms, resulting in a substantial increase in audio streaming and podcasting services:

• As of 2022, Audacy's podcast network saw a 60% increase in unique monthly users, reaching around 8 million.
• The acquisition of Podcorn and other podcast-related entities bolstered Audacy’s presence in the audio-on-demand sector.
• By Q2 2023, Audacy reported over 23.1 million monthly active users across its platforms.

Current Market Position

As of October 2023, Audacy holds a significant position in the U.S. radio market:

• Ranked as the fourth largest radio company in the United States.
• Operates more than 240 stations across major markets.
• Delivery of over 26 million streams daily.

Challenges and Future Outlook

Audacy faces challenges related to competition and shifting consumer behaviors:

• Increased competition from digital audio platforms like Spotify and Apple Music.
• Declining traditional radio revenues, with a reported decrease of approximately 10% from 2021 to 2022.
• Plans to diversify its revenue streams through better integration of advertising technology and innovative content strategies.

Conclusion

Audacy, Inc. continues to adapt to the changing landscape of the audio entertainment industry while maintaining its historical roots in traditional radio broadcasting.

A Who Owns Audacy, Inc. (AUD)

Current Ownership Structure

As of the latest available data, Audacy, Inc. (AUD) has multiple stakeholders in its ownership structure. Below is a detailed breakdown of the significant shareholders and their ownership percentages:

Institutional Ownership Details

• Vanguard Group: 10.5%
• BlackRock Inc.: 8.3%
• State Street Corporation: 5.7%
• Wellington Management Company: 4.2%
• Other Institutional Holders: 56.3%

Recent Financial Performance

In the financial year 2022, Audacy, Inc. reported revenues totaling approximately $1.34 billion, along with a net loss of $33 million. The earnings per share (EPS) stood at -$0.36.

Equity Market Performance

The stock performance of Audacy has seen fluctuations throughout 2023. The stock price on October 2, 2023, was approximately $0.81. The market capitalization was around $203 million with an average trading volume of about 2.5 million shares.

Recent Corporate Developments

Audacy has embarked on several strategic initiatives to optimize its operational efficiency and improve profitability. The recent quarter showed a 20% increase in podcast ad revenue, contributing significantly to overall earnings.

Debt and Financial Liabilities

As of the end of Q2 2023, Audacy reported total liabilities of approximately $1.1 billion, primarily consisting of long-term debt of $675 million and current liabilities of $425 million.

Outlook and Projections

Analysts estimate a revenue growth rate of 5% to 7% over the next fiscal year, focusing on expanding digital advertising and monetizing its podcasting ventures.

Audacy, Inc. (AUD) Mission Statement

Company Overview

Audacy, Inc., formerly known as Entercom Communications Corp, is a leader in audio content and entertainment, focusing on radio broadcasting and digital audio initiatives. The company primarily operates through its extensive network of radio stations, podcasts, and digital content platforms.

Mission Statement

Audacy's mission is to "create a greater connection between brands and consumers through the power of audio." This reflects their ambition to innovate within the audio landscape and leverage their platforms to foster engagement and community.

Core Values

• Innovation
• Integrity
• Passion for Audio
• Diversity & Inclusion
• Community Engagement

Financial Performance

For the fiscal year 2022, Audacy reported revenue of approximately $1.12 billion. The company continues to navigate the competitive audio landscape with a focus on digital transformations that enhance their service offerings.

Recent Financial Metrics

Market Position

Audacy ranks among the top audio content providers in the United States, operating nearly 235 radio stations across more than 50 markets. The company has a significant audience reach, impacting over 66 million listeners monthly.

Digital Strategy

With the rise of podcasting and digital streaming, Audacy has pivoted towards enhancing its digital footprint. The company acquired Podcorn, a platform connecting brands with podcast creators, which supports its mission to diversify audio content offerings.

Social Responsibility Initiatives

• Community-driven programs across various markets.
• Initiatives aimed at promoting diversity in media representation.
• Collaboration with local organizations to support education and outreach.

Future Outlook

Audacy aims to expand its digital audio services continuously. With an investment in technology and content creation, the company looks to adapt to evolving listening habits, especially among younger audiences.

How Audacy, Inc. (AUD) Works

Overview of Audacy, Inc.

Audacy, Inc. operates as a diversified media and entertainment company primarily involved in radio broadcasting and digital audio. The company, originally known as Entercom Communications Corp, rebranded to Audacy in 2020. As of 2023, Audacy owns over 230 radio stations across more than 47 markets in the United States.

Financial Performance

In the year 2022, Audacy reported:

• Revenue: $1.085 billion
• Net income: -$78 million
• Adjusted EBITDA: $148 million
• Total assets: $2.19 billion
• Total liabilities: $2.68 billion

Revenue Breakdown

Audacy generates revenue from various sources, including:

Digital Audio Strategy

Audacy emphasizes its digital audio strategy, boasting:

• Over 100 million monthly unique users on its digital platforms.
• Leadership in podcasting, with over 16,000 original shows.
• Investments in streaming technology and partnerships with platforms such as Spotify and Apple Podcasts.

Stock Performance

As of October 2023, Audacy's stock performance has shown:

• Current stock price: $0.82
• Market capitalization: Approximately $175 million
• 52-week trading range: $0.60 - $1.50
• Year-to-date performance: Down approximately 55%

Operational Segments

Audacy operates through several segments, including:

• Local Broadcasting
• National Broadcasting
• Digital Audio Services

Market Presence

Audacy’s reach includes:

• Top 10 radio market share in major cities like New York, Los Angeles, and Chicago.
• Partnerships with major brands for promotions and sponsorships.
• Strong presence in sports broadcasting, including partnerships with the NFL and the MLB.

Future Outlook

Looking forward, Audacy aims to focus on:

• Enhancing digital capabilities to drive advertising revenue.
• Expanding its podcast content and audience.
• Cost management strategies to improve profitability.

How Audacy, Inc. (AUD) Makes Money

Advertising Revenue

Audacy generates a significant portion of its revenue through advertising sales. In the second quarter of 2023, Audacy reported approximately $303 million in advertising revenue.

• Digital advertising contributed about $82 million to the total advertising revenue.
• Local advertising accounted for approximately $174 million.
• National advertising represented nearly $47 million.

Podcasting and Digital Audio

Podcasting has emerged as a vital revenue stream. In 2022, podcasting revenue was approximately $51 million, showing growth from previous years.

• Audacy hosted over 80,000 podcast episodes across its platforms.
• The number of unique monthly podcast listeners reached around 10 million.

Sponsorships and Partnerships

Partnerships with brands for exclusive sponsorships have also become a key revenue source. As of 2023, Audacy has agreements with over 500 brands.

• These sponsorships contribute roughly $25 million annually.
• The company reported average sponsorship deals range from $50,000 to $200,000 depending on the campaign size.

Subscription Services

Audacy has begun to explore subscription-based services, with initiatives like exclusive content for subscribers. The estimated revenue from subscriptions in 2023 is around $16 million.

• Subscription services are projected to lead to an annual growth rate of 15%.
• Current user subscriptions total over 200,000.

Content Production and Distribution

Audacy produces original content that is distributed across various platforms, further enhancing revenue possibilities. In 2023, revenue from content production was around $10 million.

• The company has partnerships with over 100 content producers.
• Audacy's original shows attract more than 5 million monthly listeners.

Merchandising and Consumer Products

Audacy also engages in merchandising related to its brands, generating an estimated revenue of $3 million in 2023.

• Product sales include clothing, accessories, and branded items.
• Annual sales of merchandise have grown by 10% year-over-year.

Financial Summary - Q2 2023

Conclusion

Through various channels, including advertising, podcasting, sponsorships, subscriptions, content production, and merchandising, Audacy continues to diversify its revenue streams. The company's financial performance exhibits resilience with a projected revenue growth of approximately 12% for 2023.