Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q3 2021 Earnings Presentation
27 slides from Iheartmedia's earnings presentation, Nov 4, 2021
Slide 1: Third Quarter 2021 Investor Presentation
Third Quarter 2021 Investor Presentation November 4, 2021 NASDAQ: IHRT
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward Looking Language Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors
Slide 3: Executive Summary
Executive Summary Ø Q3 2021 Consolidated Results ▪ Q3 Revenue of $928 million up 25% YoY; exceeding prior guidance of up approximately 20% ◦ Excluding the impact of Political, Q3 revenue was up 31% YoY ◦ Q3 2021 down 2% vs. Q3 2019 -- continuing sequential quarterly improvement vs. 2019 ▪ Consolidat
Slide 4: Segment Reporting: 2021 Q3 Results
Segment Reporting: 2021 Q3 Results Revenue Adjusted EBITDA Margin % $US Dollars in millions Three Months Ended September 30, 2021 Three Months Ended September 30, 2021 2021 2020 % Chg 2021 2020 % Chg Q3 2021 Q3 2020 Q2 2021 Q1 2021 Multiplatform Group $ 659.0 $ 555.1 18.7 % $ 208.4 $ 139.0 50.0 % 31
Slide 5: iHeart Has the Only Total Audio Media Ecosystem
iHeart Has the Only Total Audio Media Ecosystem CONTENT DISTRIBUTION TECHNOLOGY Broadcast & Digital Hosting/Infrastructure, Data, Monetization, and Measurement Radio Stations & Station Websites Events (Local & National) Networks Email Newsletters and iHeart Websites Personalities 860+ O&O Broadcast
Slide 6: Improving Broadcast Radio Revenue Share
Improving Broadcast Radio Revenue Share Miller-Kaplan Outperformance 140.0 iHM: 129.8 120.0 LTM Revenue Index to 2010 100.0 Industry ex-iHM: 87.5 80.0 60.0 40.0 20.0 Industry ex-iHM iHM - 6 Source: Miller Kaplan as of September 2021, Broadcast and Network Radio Gross Revenue
Slide 7: Outperforming Quarterly YoY Revenue Growth: MAGNA Digital Ex-Podcast
Outperforming Quarterly YoY Revenue Growth MAGNA Digital Ex-Podcast 125% 100% 75% +51% 50% 25% +34% Industry 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 -25% 7 Source: MAGNA US Media Forecast Sept 2021, MAGNA Digital Ex-Podcast includes: Audio (ex-podcast), Social, Display, Video, Search, and Other (i.e.
Slide 8: Outperforming Quarterly YoY Revenue Growth: MAGNA Podcast
Outperforming Quarterly YoY Revenue Growth MAGNA Podcast 200% +184% 160% 120% 80% +60% Industry 40% 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 8 Source: MAGNA US Media Forecast Sept 2021
Slide 9: iHeartPodcast Network's Audience Has Grown 7X Faster than NPR Since 2019
iHeartPodcast Network’s Audience Has Grown 7X Faster than Its Closest Competitor (NPR) Since 2019 Growth vs 2019 Podtrac U.S. Unique Monthly Podcast Audience +109% 30 M 25 M +16% 20 M 15 M +69% 10 M +49% 5M 0M 9 Source: Podtrac Rankings, Jan 2019 – October 2021
Slide 10: Leading Podcast Publisher Across All Podtrac Categories
And Leading Podcast Publisher Across All Podtrac Categories Most Shows In Podtrac Most Shows In Podtrac Most Shows RANKING THE TOP 10 by category 1MM+ LISTENS iHeartRadio: 113 iHeartRadio: 43 iHeartRadio: 43 Wondery: 39 NPR: 16 NPR: 19 NPR: 27 Wondery: 16 Wondery: 16 #1 in total global downloads #1
Slide 11: iHeartRadio Is the #1 Podcast Publisher in the US
iHeartRadio Is the #1 Podcast Publisher in the US THE MOST CREATORS + THE MOST-ENGAGED SUPERFANS ON THE BIGGEST STAGE IN PODCASTING PODCAST PUBLISHER MONTHLY AUDIENCE MONTHLY DOWNLOADS 30,022,000 281,719,000 20,523,000 160,695,000 11,736,000 70,342,000 9,885,000 84,240,000 8,415,000 56,239,000 7,608
Slide 12: Q3 '21 Financial Results
Q3 '21 Financial Results Three Months Three Months Ended Ended $US Dollars in millions September 30, June 30, 2021 2020 Variance 2021 Revenue $ 928.1 $ 744.4 24.7 % $ 861.6 Direct operating expenses 325.8 270.9 20.3 % 320.5 SG&A expenses 390.1 333.1 17.1 % 372.6 Depreciation & amortization 108.1 99.
Slide 13: Q3 '21 YTD Financial Results
Q3 '21 YTD Financial Results Nine Months Ended $US Dollars in millions September 30, 2021 2020 Variance Revenue $ 2,496.3 $ 2,012.7 24.0 % Direct operating expenses 939.1 808.9 16.1 % SG&A expenses 1,105.1 1,018.3 8.5 % Depreciation & amortization 343.4 299.5 14.7 % Impairment charges 49.4 1,733.2 O
Slide 14: iHeartMedia Q3 Revenue Streams
iHeartMedia Q3 Revenue Streams Three Months Ended $US Dollars in millions September 30, 2021 2020 Variance Revenue Broadcast Radio $ 483.5 $ 404.5 19.5 % Networks 127.9 119.0 7.5 % Sponsorship and Events 42.7 28.9 47.6 % Other 4.9 2.8 79.2 % Multiplatform Group $ 659.0 $ 555.1 18.7 % Digital ex. Pod
Slide 15: iHeartMedia Q3 YTD Revenue Streams
iHeartMedia Q3 YTD Revenue Streams Nine Months Ended $US Dollars in millions September 30, 2021 2020 Variance Revenue Broadcast Radio $ 1,293.1 $ 1,110.2 16.5 % Networks 366.6 349.9 4.8 % Sponsorship and Events 93.6 73.1 28.2 % Other 9.4 8.7 7.3 % Multiplatform Group $ 1,762.7 $ 1,541.8 14.3 % Digit
Slide 16: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended $US Dollars in millions September 30, 2021 2020 Variance Revenue Political Revenue Impact: Multiplatform Group $ 5.9 $ 21.0 $ (15.1) Digital Audio Group 0.4 0.8 (0.5) Audio & Media Services Group 1.6 17.8 (16.2) Total $ 7.8 $ 39.6 $ (31.8) Nine
Slide 17: Capital Expenditures
Capital Expenditures $USD in millions Nine Months Ended September 30, 2021 2020 Variance Multiplatform Group $ 66.5 $ 34.8 $ 31.7 Digital Audio Group 17.9 10.7 7.2 Audio & Media Services Group 6.2 2.5 3.7 Corporate 10.7 10.5 0.2 Total Gross Capital Expenditures $ 101.3 $ 58.5 $ 42.8 Proceeds from Re
Slide 18: Debt
Debt September 30, December 31, $USD in millions Maturity 2021 2020 iHeartCommunications, Inc. Cash and cash equivalents $ 369.1 $ 720.7 Term Loan Facility due 2026 2026 $ 1,864.0 $ 2,080.3 Incremental Term Loan Facility due 2026 2026 401.2 447.8 Asset-based (1) Revolving Credit Facility 2023 — — 6.
Slide 19: Subsequent Event - Improved Debt Structure and Deleveraging
Subsequent Event - Improved Debt Structure and Deleveraging Ø Term Loan ▪ Voluntarily prepaid $250 million of term loan in July, resulting in reduction of: ◦ $44 million of the existing Incremental Term Loan Facility ◦ $206 million of the Term Loan Facility ▪ Incremental Term Loan interest rate: ◦ L
Slide 20: IHRT is Resilient with Streamlined Cost Structure Delivering Sustained Margin Improvement
IHRT is Resilient with Streamlined Cost Structure Delivering Sustained Long-Term Margin Improvement Ø We took early actions to focus on aggressive cost management Ø Our modernization and other cost saving initiatives are a multi-pronged set of strategic initiatives aimed at creating lasting structur
Slide 21: Appendix
21 Appendix MEDIA
Slide 22: Segment Reporting: 2021 Q3 YTD Results
Segment Reporting: 2021 Q3 YTD Results Revenue Adjusted EBITDA Margin % $US Dollars in millions Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2021 2021 2020 % Chg 2021 2020 % Chg 2021 2020 Multiplatform Group $ 1,762.7 $ 1,541.8 14.3 % $ 494.6 $ 276.7 78.7 % 28.1 % 17.9 % Digi
Slide 23: Q3 2021 and YTD Reconciliation of Free Cash Flow to Cash Provided by Operating Activities
Q3 2021 and Q2 2021 YTD Reconciliation of Free Cash Flow to Cash Provided by Operating Activities Three Months Three Months Ended Ended (In thousands) September 30, June 30, 2021 2020 2021 Cash provided by operating activities $ 95,736 $ 33,252 $ 29,129 Purchases of property, plant and equipment (50
Slide 24: Q3 2021 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q3 2021 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Three Months Ended Ended $US Dollars in thousands September 30, June 30, 2021 2020 2021 Net income (loss) $ 3,673 $ (32,112) $ (31,960) Income tax benefit (expense) (27,147) (15,228) 24,449 Interest expense, net 82,481 85,
Slide 25: Q3 2021 YTD Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q3 2021 YTD Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Nine Months Ended $US Dollars in thousands September 30, 2021 2020 Net loss $ (270,343) $ (1,918,165) Income tax benefit (expense) 77,237 (209,481) Interest expense, net 252,489 257,614 Depreciation and amortization 343,408 299,494
Slide 26: Reconciliation of Revenue Excluding Effects of Political Revenue
Q3 2021 and Q3 2021 YTD Reconciliation of Revenue Excluding Effects of Political Revenue to Revenue Three Months Ended Nine Months Ended (In thousands) September 30, September 30, 2021 2020 2021 2020 Consolidated revenue $ 928,051 $ 744,406 $ 2,496,321 $ 2,012,688 Excluding: Political revenue (7,836
Slide 27: About iHeartMedia, Inc.
About iHeartMedia, Inc. iHeartMedia (Nasdaq: IHRT) is the number one audio company in the United States, reaching nine out of 10 Americans every month. It consists of three business groups. With its quarter of a billion monthly listeners, the iHeartMedia Multiplatform Group has a greater reach than