Slide 1: Second Quarter 2022 Investor Presentation
Second Quarter 2022 Investor Presentation August 4, 2022 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 Q2 2022 Consolidated Results ▪ Q2 Revenue of $954 million, up 11% YoY; in line with guidance of up approximately 10%-14% ▪ Consolidated Adjusted EBITDA of $237 million increased 29% YoY; in line with guidance of $225 million to $245 million ◦ Consolidated Adjusted EBITDA margin o
Slide 4: Segment Reporting: 2022 Q2 Results
Segment Reporting: 2022 Q2 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % $US Dollars in millions Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2022 2021 % Chg 2022 2021 % Chg 2022 2021 Multiplatform Group $ 633.3 $ 605.9 4.5 % $ 194.5 $ 181.4 7.2 % 30
Slide 5: Continued Strong Digital Growth Directly Translating to Revenue Mix Shift
Continued Strong Digital Growth Directly Translating to Revenue Mix Shift Q1 2020 Q2 2022 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $781MM) (% Composition1) (Total $954MM) Audio Media Audio Media 8% 7% Services Services Podcast 2% Digital Podcast 9% Audio 12% Group Digital Au
Slide 6: 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 7: iHeartRadio Strategically Positioned in the Podcast Value Chain
iHeartRadio Strategically Positioned in the Podcast Value Chain1 High Value Low Value PODCAST PUBLISHERS PODCAST SALES REPS. DISTRIBUTORS • Control/produce all content • Sell/backfill podcasts for certain • Carry podcasts on platform • Publish content across multiple Publishers • No economics unless
Slide 8: Ranking the Top 10 1MM+ Listens and Leading Podcast Publisher
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 109 38 51 51 22 26 24 14 17 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in for 24 consecutive months
Slide 9: iHeartRadio is the #1 Podcast Publisher in the US
iHeartRadio is the #1 Podcast Publisher in the US with More Downloads than the Next 2 Publishers Combined PODCAST PUBLISHER MONTHLY DOWNLOADS MONTHLY AUDIENCE 431,341,000 30,332,000 1 185,239,000 23,836,000 160,076,000 18,021,000 139,753,000 11,000,000 65,166,000 9,112,000 78,140,000 8,209,000 48,18
Slide 10: iHeartPodcast Network’s Monthly Downloads Have Grown 2X As Much As The Next Closest Competitor
iHeartPodcast Network’s Monthly Downloads Have Grown 2X As Much As The Next Closest Competitor Podtrac: Monthly Podcast Streams & Downloads Growth vs 2019 450M 400M +269M 350M 300M 250M 200M +138M1 150M +2M +86M 100M 50M 0M Source: Podtrac Rankings, Global Steams & Downloads, Jan 2019 – June 2022 10
Slide 11: iHeartPodcast Network’s Growth Is Highly Organic
1 iHeartPodcast Network’s Growth Is Highly Organic iHeartPodcast Network Monthly Streams/Downloads 448M 180M +67% 22% New Podcasts1 +180M 269M 78% Existing Podcasts1 May 2021 May 2022 May 2021 to May 2022 YoY Growth Source: Podtrac, May 2022 vs May 2021 11 1 "Existing" and "New" Podcasts reflect pod
Slide 12: Outperforming Quarterly YoY Revenue Growth MAGNA Podcast
Outperforming Quarterly YoY Revenue Growth MAGNA Podcast 200% 160% 120% 80% +60% 40% +22% Industry 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 12 Source: MAGNA US Media Forecast Summer 2022
Slide 13: Outperforming Quarterly YoY Revenue Growth MAGNA Digital Ex-Podcast
Outperforming Quarterly YoY Revenue Growth MAGNA Digital Ex-Podcast 105% 90% 75% 60% 45% 30% +15% 15% +11% Industry 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 -15% 13 Source: MAGNA US Media Forecast Summer 2022, MAGNA Digital Ex-Podcast includes: Audio (ex-podcast), Social, Display, Video,
Slide 14: Digital Ex-Podcast Generates Additional Growth and TAM Opportunities
Digital Ex-Podcast Generates Additional Growth and TAM Opportunities Q2 2022 Revenue: $253M FY 2021 Revenue: $582M 3rd Party Digital Websites Products Ad Tech Video Newsletters Streaming Social Audio Amplified by: 1. Largest audio salesforce in the US 2. Long-term sales relationships with SMBs posit
Slide 15: LTM Revenue Index to 2010
15 LTM Revenue Index to 2010 100.0 120.0 140.0 40.0 60.0 80.0 - 20.0 Jan-10 May-10 Oct-10 Feb-11 Jul-11 Nov-11 Apr-12 Aug-12 Jan-13 May-13 Oct-13 Source: Miller Kaplan as of June 2022, Broadcast and Network Radio Gross Revenue Feb-14 Jul-14 Nov-14 Apr-15 Sep-15 Jan-16 Jun-16 Industry ex-iHM Oct-16 M
Slide 16: Resilient Balance Sheet and Improved Debt Structure
Resilient Balance Sheet and Improved Debt Structure ➢ Q2 2022 Balance Sheet Strength ▪ Cash balance $295 million; total available liquidity1 $715 million ◦ Free Cash Flow including net proceeds from real estate sales of $127 million ▪ No debt maintenance covenants ▪ No material debt maturities prior
Slide 17: Q2 '22 Financial Results
Q2 '22 Financial Results Three Months Three Months Ended Ended $US Dollars in millions June 30, March 31, 2022 2021 Variance 2022 Revenue $ 954.0 $ 861.6 10.7 % $ 843.5 Direct operating expenses 365.4 320.5 14.0 % 330.5 SG&A expenses 379.1 372.6 1.7 % 384.3 Depreciation & amortization 110.8 127.9 (1
Slide 18: Q2 YTD 2022 Financial Results
Q2 YTD 2022 Financial Results Six Months Ended $US Dollars in millions June 30, 2022 2021 Variance Revenue $ 1,797.5 $ 1,568.3 14.6 % Direct operating expenses 695.9 613.3 13.5 % SG&A expenses 763.4 715.0 6.8 % Depreciation & amortization 224.8 235.3 (4.4) % Impairment charges 1.6 37.7 Other operati
Slide 19: iHeartMedia Q2 Revenue Streams
iHeartMedia Q2 Revenue Streams Three Months Ended $US Dollars in millions June 30, 2022 2021 Variance Revenue Broadcast Radio $ 463.3 $ 451.1 2.7 % Networks 127.5 123.6 3.2 % Sponsorship and Events 38.1 28.6 33.2 % Other 4.4 2.5 73.4 % Multiplatform Group $ 633.3 $ 605.9 4.5 % Digital ex. Podcast 16
Slide 20: iHeartMedia Q2 YTD 2022 Revenue Streams
iHeartMedia Q2 YTD 2022 Revenue Streams Six Months Ended $US Dollars in millions June 30, 2022 2021 Variance Revenue Broadcast Radio $ 879.8 $ 809.7 8.7 % Networks 245.1 238.7 2.7 % Sponsorship and Events 71.7 51.0 40.6 % Other 7.9 4.4 79.2 % Multiplatform Group $ 1,204.5 $ 1,103.7 9.1 % Digital ex.
Slide 21: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended $US Dollars in millions June 30, 2022 2021 Variance Revenue Political Revenue Impact: Multiplatform Group $ 13.5 $ 4.2 $ 9.2 Digital Audio Group 1.4 0.2 1.2 Audio & Media Services Group 8.2 1.2 7.0 Total $ 23.1 $ 5.6 $ 17.5 Six Months Ended $US
Slide 22: Capital Expenditures
Capital Expenditures $USD in millions Six Months Ended June 30, 2022 2021 Variance Multiplatform Group $ 48.7 $ 31.4 $ 17.3 Digital Audio Group 11.1 11.7 (0.6) Audio & Media Services Group 4.1 2.3 1.9 Corporate 8.3 5.7 2.6 Total Gross Capital Expenditures $ 72.2 $ 51.1 $ 21.1 Less: Proceeds from Rea
Slide 23: Debt
Debt June 30, December 31, $USD in millions Maturity 2022 2021 iHeartCommunications, Inc. Cash and cash equivalents $ 294.8 $ 352.1 Term Loan Facility due 2026 2026 $ 1,864.0 $ 1,864.0 Incremental Term Loan Facility due 2026 2026 401.2 401.2 (1) Asset-based Revolving Credit Facility 2027 — — 6.375%
Slide 24: Appendix
24 Appendix MEDIA
Slide 25: Segment Reporting: Q2 YTD 2022 Results
Segment Reporting: Q2 YTD 2022 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % $US Dollars in millions Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2022 2021 % Chg 2022 2021 % Chg 2022 2021 Multiplatform Group $ 1,204.5 $ 1,103.7 9.1 % $ 328.4 $ 286.2 14.8 %
Slide 26: Q2 2022 and Q2 YTD 2022 Reconciliation of Free Cash Flow
Q2 2022 and Q2 YTD 2022 Reconciliation of Free Cash Flow to Cash Provided by Operating Activities Three Months Ended ($US Dollars in thousands) June 30, 2022 2021 Cash provided by operating activities $ 155,801 $ 29,129 Purchases of property, plant and equipment (49,653) (32,111) Free cash flow $ 10
Slide 27: Q2 2022 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Q2 2022 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA Three Months Three Months Ended Ended $US Dollars in thousands June 30, March 31, 2022 2021 2022 Net income (loss) $ 15,182 $ (31,960) $ (48,739) Income tax (benefit) expense 1,782 24,449 (20,209) Interest expense, net 81,494
Slide 28: Q2 YTD 2022 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q2 YTD 2022 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Six Months Ended $US Dollars in thousands June 30, 2022 2021 Net loss $ (33,557) $ (274,016) Income tax (benefit) expense (18,427) 104,384 Interest expense, net 160,713 170,008 Depreciation and amortization 224,839 235,308 EBITDA $
Slide 29: Q2 2022 Reconciliation of Revenue Excluding Effects of Political Revenue
Q2 2022 Reconciliation of Revenue Excluding Effects of Political Revenue to Revenue Three Months Ended Six Months Ended ($US Dollars in thousands) June 30, June 30, 2022 2021 2022 2021 Consolidated revenue $ 954,005 $ 861,605 $ 1,797,463 $ 1,568,270 Excluding: Political revenue (23,084) (5,615) (32,
Slide 30: 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