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spk03: Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the iHeartMedia second quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. Mike McGinnis, Head of Investor Relations, you may begin your conference.
spk06: Good morning, everyone, and thank you for taking the time to join us for our second quarter 2023 earnings call. Joining me for today's discussion are Bob Pittman, our Chairman and CEO, and Rich Bressler, our President, COO, and CFO. At the conclusion of our prepared remarks, management will take your questions. In addition to a press release, we have an earnings presentation available on our website that you can use to follow along with our remarks. Please note that this call may include forward-looking statements regarding our financial performance and operating results. These statements are based on management's current expectations, and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filings. Additionally, during the call, we will refer to certain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP financial measures are included in our earnings release. earnings presentation, and our SEC filings, which are available in the investor relations section of our website. And now I'll turn the call over to Bob.
spk01: Thanks, Mike, and good morning, everyone. We're pleased to report that our second quarter 2023 results were in line with our previously provided adjusted EBITDA and revenue guidance ranges. The signs of improvement in the advertising marketplace that we called on in our first quarter call have continued, and we're seeing indications of improving macroeconomic trends, which we expect to have a positive impact on us in the second half of the year, and similar to what you've probably heard from others, we expect most of that positive impact in Q4. While we're carefully monitoring these improving macroeconomic conditions, we're also continuing our expense management work. These actions and the work we've done over the past couple of years to make our organization more efficient have allowed us to be resilient during this recent period of advertising softness. These actions have also freed up additional capital that enabled us to continue reducing our highest cost debt at advantageous prices while also continuing to reinvest in our high growth areas like podcasting. The continued positive performance of our digital audio group, led by our podcast business, and the significantly improved relative performance of a multi-platform group during the soft advertising period compared to the last downturn in 2020 are encouraging metrics for us. Additionally, while the advertising environment remains challenging in the short term, we note that there are some opportunities that iHeart is uniquely positioned to take advantage of. Linear TVs, viewership continues its precipitous decline. The Hollywood labor strikes have already had an impact on content distribution and will likely have an impact on future content creation, both of which could have a negative impact on video audiences. And there's an ongoing and well-publicized upheaval in social media platforms. These opportunities, along with the important and first-of-its-kind Dentsu study about the audio sector that just came out last week, clearly demonstrate the unique and powerful impact of audio, including both podcasting and radio, and creates maybe the best environment we've had to make our case to advertisers and their agencies about the power and value of audio media with radio and podcasting at the forefront. With that backdrop, let me take you through some key financial results of the quarter. In the second quarter, we generated adjusted EBITDA of $191 million, slightly above the midpoint of the guidance range we provided of $180 to $200 million, and more than double the adjusted EBITDA we generated in the first quarter. Our second quarter adjusted EBITDA was down 19.4% year-over-year, which is a significant improvement from Q1, which was down 35.7% year-over-year. Our consolidated revenues for the quarter were down 3.6% compared to the prior year quarter, a little better than the guidance we provided of down mid-single digits. And excluding the impact of political, our consolidated revenues were down 1.8%. Turning now to our individual operating segments, in the second quarter, our digital audio group revenues were $261 million, up 3.3% versus prior year. Adjusted EBITDA was $85 million, up 7.2% versus prior year. And our digital audio group adjusted EBITDA margins were 32.4%. We believe the digital audio group's adjusted EBITDA performance benefited from the strategic fixed cost investments we've made in the past few quarters. This quarter also illustrates the strong flow-through characteristics of the business, as our Q2 digital audio group margins expanded 120 basis points year-over-year and were 820 basis points better than the first quarter. Within the digital audio group, our podcast revenues, even in the slower ad market, grew 13% versus prior year. Further evidence about our leadership position in the industry and illustrating how powerful podcasting is as both a short-term and long-term growth engine for the company. Our digital X podcast revenues were down 1.6% versus prior year, with the prior year benefiting from non-returning COVID-related advertising spend. We expect our digital ex-podcasting revenues to be back to positive growth in the third quarter. In the second quarter, podcasting was by far the best-performing segment of the advertising marketplace, and we continue to have the largest podcast audience reach in the United States. In June, 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. Our leadership position in podcasting is, in part, the result of the unparalleled scale of our complete audio platform that we use to promote our shows across our digital products and across our broadcast assets, which have three times the consumer reach of the largest TV network and twice the reach of the next largest audio service. A great example of this is the story of Paper Ghost, one of our true crime podcasts that we recently began to promote extensively on our broadcast radio stations. Within two weeks, its downloads jumped by more than 100%, and it reached the top 10 in Apple's podcast true crime charts. Our leadership position with podcast listeners is also driven by the breadth and depth of the content we create. We're the only publisher with podcasts ranked in all 19 of PodTrack's content categories, and we have the most top 10 shows of any publisher as well. And as the podcasting industry at large continues to embrace more rational content cost, iHeart, as the leading publisher in the industry, will continue to benefit. The overall podcasting industry has also reached a significant milestone. It now surpasses all the ad-enabled streaming music services and daily usage, according to Edison, and there are now more weekly podcast listeners than there are Netflix subscribers. In addition to podcast listeners' extraordinary engagement with the medium, We think this audience diversity and reach advantage is a compelling value proposition for advertising partners as well. And finally, podcasting and broadcast radio are truly complementary businesses. As you can see by their listening profiles, 68% of broadcast radio listening happens out of home and 69% of podcast listening occurs in the home. These listening patterns are complementary because at their core, they provide the same benefit to listeners. Both are companionship mediums, and both keep their listeners company, just at different times and locations throughout the day. And the natural synergy between these two mediums gives us a real advantage in podcast content creation, promotion, marketing, and advertising sales, as you can see in our consumer engagement, revenue, and profitability metrics. And critically for us, podcast usage does not come at the expense of radio usage. Rather, instead, according to a recent survey, 70% of podcast listeners say they replaced time spent with social media platforms, 50% say they replaced time spent with YouTube, and 46% say they replaced time spent with streaming music services to make time for their podcast listening. In addition to our industry-leading podcast business, we also have the number one streaming digital radio service, which is five times larger than our closest competitor. We have the largest social footprint of any audio service by a factor of seven, and we operate 3,000 national and local websites that reach almost 150 million people in the United States each month. all of which represent additional opportunities for our advertising partners to interact with our highly engaged consumer base and provide additional revenue growth for the company. Let's turn now to our multi-platform group, which includes our broadcast radio networks and events businesses. In the second quarter, revenues were $596 million, down 5.9% versus prior year, which is an improvement from down 7.4% in the first quarter. Adjusted EBITDA was $162 million, down 16.5% versus prior year, which is a substantial improvement from down 35% in the first quarter and nearly doubled the adjusted EBITDA we generated in the first quarter. Second quarter multi-platform group adjusted EBITDA margins were 27.3%. To put this recent performance in perspective, during the 2020 economic downturn, our second quarter multi-platform group revenues were down 53.4% year-over-year, compared to down just 5.9% year-over-year in Q2 of this year. We think that significant improvement is partly attributable to the technology and data investments we've made to make our broadcast radio assets more like digital assets for advertisers, including data-enabled targeting, algorithmic buying, attribution, and performance measurement capabilities, along with our unique smart audio product and our growing AI capabilities, leading to stronger revenue growth potential for our broadcast radio assets. The multi-platform group does continue to be impacted by some of the advertising uncertainty we called out in the first quarter. As we mentioned in our first quarter call, our smaller advertisers have been more likely to continue to spin through the uncertainty while there was some softness in our larger advertisers. In Q2, our smaller advertisers remained resilient and we saw a gradual improvement from our larger advertisers as well, which leads us to believe that we'll continue to see improvements in the business through the remainder of the year. I do want to point out that the biggest driver in terms of our full-year financial performance is always the fourth quarter. The fourth quarter is always our largest revenue, EBITDA, and free cash flow quarter of the year because it's also the largest quarter of the year for most of our advertising partners in terms of sales and advertising spend. If you remember last year, despite the slowdown in the macro trends throughout the year, the fourth quarter turned out to be the best quarter in iHeart's history as advertisers accelerated their spend. So the question will be, will the advertisers who've cut back or stood on the sidelines throughout the year start to spend as they enter the fourth quarter? Based on the improving trends we've mentioned here and how the fourth quarter of last year performed, we think the answer to that is most likely yes. But we'll have better insight into those trends as we near the end of the third quarter. Turning to the state of the broadcast radio industry, radio continues to be a vital and trusted source of information, entertainment, companionship, and support for hundreds of millions of Americans and is irreplaceable during times of crisis and disaster in local communities. There is no better evidence of that unique power that radio has with the consumers than what we saw happen in the Senate two weeks ago with the AM Radio for Every Vehicle Act, bipartisan legislation which would require automakers to keep AM radio in new cars, including EVs, at no additional cost to the consumer. This bill, introduced by Senators Markey and Cruz, and currently with 28 co-sponsors, equally divided between Democrats and Republicans, passed out of committee with near-unanimous, bipartisan support, importantly, with the full support of Chairwoman Cantwell, and is the result of listeners' strong feedback to Congress and reflects the passionate and vocal consumer base that radio enjoys. Broadcast radios reach, and the loyalty that audiences have to its variety of hosts, programs, and content is unmatched in media today. And iHeart's ability to connect those audiences with our advertising partners directly correlates to the advertising revenue potential of these assets. Remember, historically advertising has always followed the consumer, and consumers are on the radio and staying on the radio. So iHeart's mass reach will become even more important as advertisers and agencies struggle to replace the rapidly declining reach that has historically been provided by linear TV and cable networks. As a reminder, CBS, the largest TV network, has seen its consumer reach cut in half since the early 2000s, while iHeart's broadcast radio consumer reach grew over the same period and now reaches an audience almost twice the size of CBS. And critically, for our advertising partners, streaming video services have been unable to compensate for the decline in linear TV reach, which again, highlights the opportunity we have before us. Now, we know some are asking if broadcast radio is a revenue and earnings growth platform for the company, or if it's a declining business that digital must compensate for. Let me be clear. While it will likely advance at a lower growth rate than our digital business, we feel certain broadcast radio will provide long-term sustainable revenue and earnings growth for iHeart. Before I turn it over to Rich, I want to leave you with this final thought. As we look to the back half of 2023, we know we're up against some tough year-over-year comps as the second half of 2022 benefited from a very strong midterm political cycle as well as some non-returning COVID-related advertising. But with the actions we've taken to improve our operating efficiency, in combination with the gradual improvement we're seeing in the advertising marketplace, we believe we'll see a continued quarter-over-quarter sequential improvement. This will also help position us for a strong 2024, which, as a reminder, is also a presidential political year. And now I'll turn it over to Rich.
spk00: Thanks, Bob. As I take you through our results, you'll notice that, as Bob mentioned, we slightly exceeded our previously provided guidance for the quarter. Our Q2 2023 consolidated revenues were down 3.6% year-over-year, a little better than the guidance we provided of down mid-single digits. And excluding the impact of political, our consolidated revenues were down 1.8%. Our consolidated direct operating expenses decreased 2.8% for the quarter. This decrease was primarily driven by cost savings initiatives, including reduced compensation expense and lower digital royalty fees, which in the prior year quarter benefited from the settlement of amounts related to prior periods. This decrease was partially offset by the increase of certain expenses tied to the growing digital revenues, including third-party digital costs and production costs. Our consolidated SG&A expenses increased 3.9% for the quarter, primarily driven by higher variable compensation expense and higher bad debt expense, partially offset by lower sales commissions. As a reminder, we paid minimal bonuses to our employees last year. We generated a second quarter gap operating loss of $897 million compared to operating income of $83 million in the prior year quarter. Included in our gap operating loss was the impact of a $961 million non-cash intangible impairment related to our FCC licenses and goodwill. If you recall, when we emerged from bankruptcy in May of 2019, when the macroeconomic environment was much different than it is today, we applied fresh start accounting, which resulted in a significant write-up of our intangible assets. We revisit and evaluate our intangible asset valuations each year using analysis which incorporate, among other things, consideration of the current macroeconomic conditions and current interest rate levels, and current equity and debt valuations in the marketplace. These key factors have shifted substantially over even the past couple of years, driven in part by the Fed's sharp interest rate increases. Incorporating these updated factors into our analytical review results in an adjustment to the book value of our intangible assets. Our second quarter adjusted EBITDA was $191 million compared to $237 million in the prior year quarter, and slightly above the midpoint of the guidance range we provided of $180 million to $200 million, and more than double the adjusted EBITDA we generated in the first quarter. Turning now to the performance of our operating segments, and as a reminder, there are slides in the earnings presentation on our segment performances. In the second quarter, digital audio group revenues were $261 million of 3.3% year-over-year, and they comprised approximately 28% of our second quarter consolidated revenues. Digital audio group adjusted EBITDA was $85 million of 7.2% year-over-year, and our Q2 margins also improved year-over-year to 32.4%. Within the digital audio group are our podcasting revenues, which grew 12.9% year over year and our non podcasting digital revenues, which were down approximately 1.6% year over year, reflecting non-returning COVID related advertising spending in the prior year. And as Bob said, We expect to be back to positive revenue growth for our digital ex-podcasting revenues in the third quarter. As anticipated, in the second quarter, we continue to see improvements in our digital audio group EBITDA flow-through and EBITDA margins. And in the long term, we continue to believe our digital audio group should be a 35% adjusted EBITDA margin business. Multi-platform group revenues were $596 million, down 5.9% year-over-year. Adjusted EBITDA was $162 million, down 16.5% year-over-year, and nearly doubled the adjusted EBITDA we generated in the first quarter. Multi-platform group adjusted EBITDA margins also improved sequentially. to 27.3%. Audio-media services group revenues were $66 million, down approximately 7% year-over-year, and adjusted NVIDIA was $18 million, down from $22 million in the prior year. Excluding the impact of political in the prior year quarter, audio-media services group revenues were up 2.4%. At quarter end, We had approximately $5.2 billion of net debt outstanding, and our total liquidity was $585 million, which includes a cash balance of $165 million. Our quarter-ending net debt adjusted EBITDA ratio was six times. We remain committed to our long-term goal of a net debt to adjusted EBITDA ratio of approximately four times. As highlighted on past calls, we have no material maintenance governance and no debt maturities until mid-2026. In the current macro environment, this type of debt profile positions us to be both resilient and opportunistic in responding to debt market developments. In Q2, we purchased $80 million of the principal balance of our 8 and 3As senior unsecured nodes at a meaningful discount to their par value. generating both earnings and free cash flow accretion. This brings our total purchase of these notes to $430 million, reducing the outstanding amount from $1.45 billion to approximately $1 billion, and results in aggregate annualized interest savings of approximately $40 million. We monitor market conditions, and as opportunities arise, we will continue to improve and optimize our capital structure. In the second quarter, we generated $39 million of free cash flow, including the impact of $5 million of real estate asset sales. While free cash flow conversion this quarter was lower than we anticipated, this was largely driven by the timing of collections, which will reverse themselves in Q3. We had over $30 million of billings from a few customers that were due towards the end of June that we received on July 5th. These are not bad debts, just certain customers holding payments a bit longer. As Bob mentioned earlier, we expect to generate positive free cash flow for each subsequent quarter in 2023 with a significant amount expected to be generated in the fourth quarter. I want to turn now to our outlook for Q3, as well as some thoughts on the full year in 2024. We expect our Q3 2023 revenues to be down mid-single digits and down low single digits, excluding the impact of political revenues. Revenue for the month of July was down approximately 5%. Turning to the individual segments, we expect multi-platform group revenues to be down high single digits. Excluding the impact of political, we expect multi-platform group revenues to be down mid-single digits with the revenues slightly higher than Q2 revenue. We expect digital audio group revenues to be up mid-single digits. And we expect audio media services revenues to be down in the high teens or down low single digits, excluding the impact of political. Turning to adjusted EBITDA, for Q3 2023, we expect to generate consolidated adjusted EBITDA in the range of $195 to $205 million. I want to comment on the following items affecting free cash flow. In addition to the tax planning initiatives mentioned on our first quarter call, we have identified additional opportunities to further reduce our cash tax burden, and now expect to pay approximately 15 million dollars of cash taxes in 2023, almost half the prior guide of 25 to 30 million. Our estimate of full year 2023 capital expenditures remains at 90 million dollars. Cash restructuring expenses remain down year over year, which we expect to continue through the remainder of the year and expect to be around 50 million dollars. We continue to be impacted by the current interest rate environment as approximately 40% of our debt is floating, but we are committed to opportunistically improving our capital structure and reducing our interest expense as the market allows. In Bob's opening remarks, he commented on the unique opportunity AYA has been presented with to capitalize on changes and disruptions that are taking place across the advertising and media ecosystems. And we have included a slide in the investor presentation on the Dentsu study he referenced. With that context in mind, I'd like to provide some thoughts on our outlook for the back half of 2023 and what that means for us in 2024 and beyond. We continue to see improvements in the advertising marketplace and believe that they are an indication that our multi-platform revenues will continue its quarterly sequential improvement and that our digital audio group revenues will continue to grow in the second half of 2023. These improving trends in combination with our performance in the first and second quarters relative to guidance, along with a presidential election ahead, which is giving us every indication it will generate record political advertising revenues. gives us confidence that this advertising marketplace recovery continues. We expect to have a strong 2024 with a resumption of our growth story in terms of revenue, profitability, and free cash flow generation. And of course, this growth will increase our ability to continue to improve our capital structure. We remain committed to driving shareholder value through our rigorous allocation of capital, identifying additional cost savings opportunities, utilizing new technologies to expand our product offerings and improving our operational efficiency. And finally, on behalf of our entire senior management team, Bob and I want to thank our team members who work to deliver for their communities and for iHeart every day. Now we will turn it over to the operator to take your questions. Thank you.
spk03: At this time, I would like to remind everyone in order to ask a question, press star then the number one on your telephone keypad. And your first question comes from the line of Stephen Cahill from Wells Fargo. Your line is open.
spk04: Thank you. Maybe to start off, we've heard a lot over the last couple weeks about some of the differences going on in local versus national. I think just with your larger portfolio, you have a little more weighting to national versus some of your radio peers. That's where we've heard that there's a bit more weakness. So wondering if you could just compare and then contrast those trends a little bit. And then, Rich, maybe just on the expense management, you know, it seems like there's some cross currents here. Corporate expense was up a little bit in the quarter. You talked about not paying bonuses last year, and I'm sure that's something that you'd like to get back to for employee retention. So how do we think about both the corporate and the non-corporate expense base going forward as you look to manage those tightly, but also, you know, have some other expenses that you might be leaning into a bit?
spk01: Great. Steve, let me take the first question. I think when you look at the national local, we really look at it as more larger advertisers and smaller advertisers. I would point out that although we may have a greater exposure to larger advertisers, we also tend to get a greater share of that advertising as well. So I think that probably compensates. And I think in terms of the smaller advertisers where people have needed to spend their money, we've seen them sort of continue to spend through the softness. The larger advertisers have been a mixed bag. Some have been in at the levels they were, and some categories actually are up in the large advertisers, and some are holding back. We think they're holding back, and again, like many people who have already been talking, it looks like probably Q4 is the quarter when that breaks loose.
spk00: Yeah. Hey, Steve, it's Rich. And by the way, to Bob's point, you saw that it looks like that. And if you go back to last year in Q4, I think you'll see we had a strong Q4 and the larger advertisers in particular came back during that quarter. On expense management, you know, we continue to aggressively match expenses, specifically your question, really the increase in corporate expenses for Q2. almost entirely relates to just bonus accruals. And we didn't pay bonuses last year. But, you know, just I'd say overall in the expense management, if you just kind of look at the benefits in terms of savings, even within our Q3 guidance, we have $195 to $205 million. We've got some pretty significant savings, you know, baked into those numbers also on cost savings. So feel good about where we are. our cost savings, and corporate's really entirely related to accrual bonuses.
spk04: And then maybe just a quick follow-up, the impairment that you took, is that related to any M&A that you've done over the last few years, or is that sort of a broader goodwill and intangible charge for the company writ large? Thank you.
spk00: Steve, it's 100% the latter. It's just, honestly, it's an accounting and mathematical exercise. uh put you know simply more than anything else it really happens because of the current fair value of our debt and equity and that triggers um in a payment and by the way a lot of that's uh uh driven by the spike in uh interest rates that we've all seen again and truly just a mathematical calculation and non-cash just to make sure that's 100 clear and your next question comes from
spk03: Hey from B. Reilly Securities. Your line is open.
spk05: Yeah. Morning, everybody. Thanks for taking the questions. Just want to unpack the optimism about the fourth quarter recovery a little bit, especially given the guidance for mid-tickle digit revenue in the third quarter. What is it that's giving you that confidence that you'll see that recovery in the fourth quarter? Is it actual conversations with advertisers saying it? Is it visibility into the bookings pipeline? Just trying to unpack that relatively more optimistic outlook for the fourth quarter. Others haven't been as willing to be that aggressive on where they think budgets will recover to. Thanks.
spk01: Yeah. If you look at last year, for example, although the year was softening, starting to probably By the time we got to fourth quarter, we had a record fourth quarter for the company and a record quarter for the company. We also look at companies, especially as you get to large advertisers, usually their biggest sales quarter, almost all of them, is Q4. It's when they spend the big money on advertising. If you're going to hold out for the year, the one quarter you probably will not hold out for is Q4. And as we've had conversations with advertisers, as well as looking at historical trends, Certainly, it's going to be much stronger. I think the question is how much stronger.
spk00: Yeah, and the only thing I might just add to what Bob said when you talk about, I think you used the word, you know, optimism. I think if you just look at, I think, you know, Q1, we did about $811 million of revenue as a company. Q2, just look at sequential. improvement. We just announced 920. If you kind of look at our overall guidance for Q3, that would lead you to about $940 million. So I think as we're thinking about Q4, it's exactly obviously what Bob said between large and small advertisers, what we saw last year. And just then look at the sequential performance that the company has had this year in terms of strengthening. And by the way, you've also seen it reflected in the EBITDA numbers were pretty much Q2. The numbers we just announced are pretty much double the numbers we had in Q1 on an absolute basis for EBITDA.
spk05: Great. Thanks. And then just a follow-up. So I know we're still a little bit a ways away from the 2024 political advertising cycle. But one thing I think I'm consistently hearing is a lot of the campaigns want to leverage digital channels more effectively. Um, next year, whether that's TV or podcasts, is there anything you're doing. Maybe to prepare yourself specifically on the podcast side to capture some of those political budgets at this point.
spk01: Well, look, we are not only on podcasting, but on our broadcast radio as well. We're developing the data capabilities. that I think the political advertisers are looking for. And I think when you say they're moving to digital, I think what they're really moving to is they're getting much more digitally informed media buying. And so I think any services that can provide that extra layer of data, I think will benefit from it. And again, for our radio, broadcast radio, in addition to podcasting and our digital properties, we are putting that in place. And as you know, it's been a priority for the company.
spk05: All right. Thanks, guys. I'll turn it over.
spk03: And your next question comes from a line of Jim Goss from Barrington Research. Your line is open.
spk02: All right. Thanks. Bob, you mentioned that you thought radio was not in a declining phase, but the core radio business would at least be growing modestly. I'm wondering if you could look at that a little bit more in terms of the core direct sales versus the digital components, because it seems that over the years, that category that's been called radio has had a difference in shares with the digital elements. I know they're complementary, but the direct sales versus the other radio ad placements.
spk01: I'm not sure I exactly understand what you mean about direct sales. Could you just clarify that?
spk02: Well, I guess I just mean I think you have sales staffs that have relationships with the advertisers, and then you probably also have other ads interspersed, digitally placed ads. And are you saying that the directly placed ads would be at least flat or growing very modestly as a core for the business?
spk01: Yeah, I think if you look at how we sell our of ways that we do. The reason we have so many platforms is each one is a door that an advertiser can come through and understand iHeart, develop a relationship with iHeart, and then in most cases they spread to other platforms as well. What's exciting about broadcast radio first and foremost is it has the audience. And the study Dentsu just did was pretty amazing. It said radio was the most efficient of all audio platforms, providing 10x more efficiency when compared to the average online video ad. So we know that radio, giving them a 10x efficiency above the online video ads, which is where a lot of money is going, is very encouraging news. And we are seeing as we build our organization, yes, we are building up programmatic capabilities. you know, your point about buying, I assume that's what you mean by buying directly, that advertisers will be able to go in and they basically self-service, buy what they want to off our platforms, and we will append data to that or allow them to append their data to it, which will make it, again, more valuable, more usable. We also have a group that deals just with the clients and the major clients, and we're really marketing partners. They're looking for marketing solutions although it's bought as media in these discussions, it's not a media discussion. It is a marketing discussion. And again, having the platforms we do and having the unique scale we do, twice the reach of the biggest TV network, twice the reach of the next largest audio service, gives us the opportunity to do things others can't. And then, of course, we have great relationships, we think, with the agencies from the from the major hold codes all the way down to the smallest agencies, and we put a great priority on maintaining those relationships as well. So I think we're looking at all of those benefiting from the addition of data, benefiting from making it easier, benefiting from making it all look like digital. And as you know, with the Triton acquisition we made, we built out a unified platform for audio. So if people find an audience they want, not a Nielsen audience, but a specific audience for their needs, we can find that audience seamlessly across all forms of audio. And we, again, think that is a big boost to broadcast radio as well, having it added to that array.
spk00: Yeah, and by the way, just one last point I might add from a performance standpoint and a numbers standpoint. You did say that, you know, we were down, if you look at sequential performance for MPG Group during this year, we were down 5.9% this quarter. And in Q1, we were down, the MPG Group, multi-platform group, was down 7.4%. So one of the things we said in terms of tracking and looking at our progress, the outlook and everything Bob just said, is look at the sequential improvement in MPG. and also look at double the EBITDA number, you know, in terms of the performance. And by the way, if you go back to 2020, in terms of coming out of that period of time in the pandemic and obviously dramatic economic slowdown, Q2 was down over 50% compared to Q1 of the prior year. So again, just all the data points show significant improvements in overall performance in multi-platform groups. As a result, as Bob said, to the sales force and the access we have to the marketplace.
spk02: Okay. And one other thing, and this might be implicit somewhat in what you've just been saying, but does the complementary nature of radio and podcasting that you've pointed out between in-home and out-of-home enable a cross-selling in certain categories or the local-national blend and do the same thing? Do salespeople address both or are there specialists that might do one versus the other?
spk01: Yeah, we do have some specialists, but as you know, we have built an organization a number of years ago that any seller anywhere can sell anything, built out the technology tools to support them in doing that. So that allows us to, some people call it bundling, but allows us to put together the right marketing mix for an advertiser. And you're right, podcasting is much, more significant in home in terms of its overall usage and radio out of home. So putting those two together, it gives us a 24 hour opportunity with that consumer and is of great value.
spk02: All right. Thanks. Appreciate it.
spk01: And thank you for your help today.
spk00: Thank you all. On behalf of Bob, myself, the rest of the management team, thanks everybody for listening to the IHOP story. We're all available, Mike McGinnis, for any questions you have on follow-up and appreciate everybody's time.
spk03: This concludes today's conference call. Thank you for your participation. You may now disconnect.
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