By Harvey Hoffman
Shares of Philly-based Audacy dropped to an all-time low of 55 cents per share Wednesday, falling 5.5% for the day — and down about 84% year-over-year. Audacy now has a market capitalization of just under $80 million.
Wall Street’s bearish stance toward Audacy comes after the company reported second-quarter earnings on Aug. 5 missing expectations.
CEO and president David Field blamed “declining macroeconomic conditions and ad market headwinds” for crimping revenue growth. Q2 revenue was $319.4 million, up 5% year over year, while the company posted a pre-tax net loss of $1 million.
“While we navigate the turbulent current market conditions, we are excited by our future growth potential across our scaled, multi-platform businesses,” Field said in announcing the Q2 results. He pointed to Audacy’s expanded podcast and streaming audio networks and the rollout of a new digital platform and ad-tech capabilities in the second half of 2022 that “will enable us to unlock pools of ad demand and supply that we can’t effectively monetize today.”
A blog post published today falsely claimed that Audacy’s CEO confirmed Audacy’s bankruptcy. That statement is categorically untrue. Audacy intends to vigorously pursue all available remedies for false statements meant to cause damage to Audacy and its stakeholders. @GBHNews https://t.co/mn3UBCRIh9
— AudacyCorp (@AudacyCorp) August 31, 2022