Rich Bressler: Thanks, Ben. So let me, maybe not exactly in that order, let me take your last one first. No, we just, you know, again, in continuing to want to provide, you know, transparency, just giving an estimate of what we think as you look into ‘24. And we’re not enhancing any new cash, new cost, excuse me, programs today. But I think if you go back over the last couple of years, the rigor we apply both in terms of our cost programs, efficiencies. I think in the beginning of Bob’s opening remarks, he talked about that, talked about taking advantage of AI. As we go forward, AI technology, to be quite frank, I think it’s called AI, it’s obviously called every word AI today, but if you look at our track history over the last two, three, four years, we’ve continued to look at our company and rigorously look at efficiencies.
And today, I really would focus people on, in terms of all remarks, that if you look at what we did with the multi-platform group since 2019, we’ve actually reduced our overall expense base by 7%. And what we’ve done with that is two things, we’ve invested in terms of our higher growth businesses on the digital side, including podcasting. I think the number we gave is, if it is up 170%, I’m sorry, 270%, I apologize, over that period of time. And I’ll just remind us, we said, and we generate a lot of free cash flow during that period of time. And just to be clear, we believe Multiplatform is a growth business. It’s not, you know, we don’t believe it’s as high a growth as a digital business, but we expect, we’ve said this before, Multiplatform to get back to low-single-digit growth and again to re-rate and stake the obvious.
It’s a great free cashflow business. And if you look into 2024, I would just remind us, political is our highest margin of EBITDA business in a company that has a lot of high margin EBITDA business. And it’s one of the great advertising categories where we get the cash upfront in terms of political.
Ben Swinburne: Got it. Okay, that’s very helpful. And then I just was curious, you guys gave some helpful cash tax guidance as well for the year. There’s a lot of stuff happening in, sort of, Congress, or maybe not happening, but potentially happening around tax changes. I’m just wondering if you have any advice for us beyond ‘24 on thinking about cash tax rates for iHeart?
Bob Pittman: No. I mean, look, I think the advice we’ve said is about 10% of EBITDA in cash taxes, you know, we’re all aware, you know, of the various efforts going on, but that assumes no changes that we’ve all been reading about in any of the proposed changes, potential changes out there, which at least some of the potential changes could impact us very favorably, but we have not assumed that at this point.
Ben Swinburne: Got it. Okay, thanks so much.
Operator: Your next question is from a line of Jim Goss with Barrington Research.
Jim Goss: Good morning. It was encouraging to see your confidence in the growth in the Digital Audio Group continuing through the year. Is this — are you thinking this is not just a one year issue, but that’s a steady trend that you feel will go on for several years or beyond? And you also drew attention to the improvement in the margin for that sector. I’m wondering, if you have any thoughts on what the upside might be in the margin ultimately and is AI driving some of those gain potential?
Bob Pittman: Let me hit the first part of that and I’ll let Rich take the other, is we see the digital TAM continuing to expand, and we are able to participate in it through our Digital Audio Group, and we also think that we are probably expanding our growth within that as well. And obviously adding the technology to our broadcast radio inventory, our strategy is to get that into the digital TAM too, so that eventually the broadcast radio inventory benefits from the growth of digital overall.
Rich Bressler: Yes, and I’m sorry, Jim, your second question, second part?
Jim Goss: Just the drivers of the margin improvement and what’s the upside?
Rich Bressler: Oh, I’m sorry.
Jim Goss: Do you have some thought in the margin in mind?
Rich Bressler: Well, you know what, we’ve always, I apologize for asking you to repeat it. Look, we’ve always talked about to think about the digital TAM margin when you model out as kind of a 35% in the DA business. And I think as you look at our numbers and the data, we continue to make great progress towards that. So, and back on your cost and AI, you know, a little bit like I think, I commented on the previous questions and, you know, Ben’s question, you know, cost and efficiency and that constant rigor is something we continue to do and look to technology to help take advantage of it. And again, I think we — for the first time, really just tried to put in context and demonstrate and put some real data around it. We mentioned about the expense reduction of the Multiplatform Group, which again doesn’t take away from our view that it will return to a growth engine.
But in terms of the rigorous allocation of capital that we’ve been allocating it, more capital to our highest growth areas. So other than saying I expect us to get to that 35% if the DA margin on an annual basis up to the Digital Audio Group, I wouldn’t comment any further.
Jim Goss: Okay and maybe lastly with your core broadcasting business it’s essentially becoming almost a supportive element to the growth and the digital businesses it would seem although you did talk about the social media and the websites and the other supportive elements within broadcast. I wonder if you could talk about the role you envision with the broadcast business.
