Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q2 2023 Earnings Presentation
34 slides from Iheartmedia's earnings presentation, Aug 8, 2023
Slide 1: Second Quarter 2023 Investor Presentation
Second Quarter 2023 Investor Presentation August 8, 2023 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
1 Executive Summary Ø Q2 2023 Consolidated Results ▪ Q2 Revenue of $920 million, down 3.6%; slightly better than the guidance range of down mid-single digits ◦ Excluding Q2 Political Revenue, Q2 Revenue down 1.8% ▪ Consolidated Adjusted EBITDA of $191 million, within guidance range of $180 million t
Slide 4: Segment Reporting: 2023 Q2 Results
Segment Reporting: 2023 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, 2023 2022 % Chg 2023 2022 % Chg 2023 2022 Multiplatform Group $ 595.9 $ 633.3 (5.9) % $ 162.4 $ 194.5 (16.5)
Slide 5: Continued Digital Growth Directly Translating to Revenue Mix Shift
Continued Digital Growth Directly Translating to Revenue Mix Shift Q1 2020 Q2 2023 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $781MM) (% Composition1) (Total $920MM) Audio Media Audio Media 8% Services 7% Services Podcast 2% Digital Podcast 11% Audio 12% Group Digital Audio 28
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: iHeartPodcasts is the #1 Podcast Publisher in the US
iHeartPodcasts is the #1 Podcast Publisher in the US with More Downloads than the Next 2 Publishers Combined PODCAST PUBLISHER MONTHLY DOWNLOADS MONTHLY AUDIENCE 377,235,000 31,625,000 176,229,000 24,276,000 162,038,000 18,454,000 70,406,000 11,088,000 111,711,000 10,665,000 79,942,000 8,781,000 41,
Slide 9: iHeartPodcasts Monthly Downloads Have Grown More than the Next 3 Publishers Combined
iHeartPodcasts Monthly Downloads Have Grown More than the Next 3 Publishers Combined Podtrac: Monthly Podcast Streams & Downloads Growth since 2019 500M 400M +215M 300M 200M +129M +4M 100M +58M 0M 9 Source: Podtrac Rankings, Global Steams & Downloads, Jan 2019 – June 2023
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 94 32 44 45 19 25 18 15 15 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in for 36 consecutive months
Slide 11: Podcasting Surpasses Music Streaming With Time Spent
Podcasting Surpasses Music Streaming With Time Spent and is the 2nd Most Popular Choice after AM/FM Radio Share Of Ad-Enabled Audio Time Podcasts 20% AM/FM Radio Ad-Enabled Pandora 4% 72% 4% Ad-Enabled Spotify 1% <1% Ad-Enabled Amazon Music 11 Source: Edison Share of Ear, Q2 2023 P18+
Slide 12: More Weekly Podcast Listeners in the U.S. Than Netflix Subscribers
There are now More Weekly Podcast Listeners in the U.S. Than Netflix Subscribers Weekly Reach 89M 67M Podcasts (Weekly) Netflix Podcasts Subscribers (United States) 12 Source: Podcasts: Edison Research/The infinite Dial 2023; Netflix: https://flixpatrol.com/streaming-service/netflix/subscribers/by-v
Slide 13: Podcasting Daily Listening has Grown Across Every Demographic
Over the Last 6 Years Podcasting Daily Listening has Grown Triple Digits Across Every Demographic 43% 35% 32% 23% 19% 17% 10% 11% 10% 8% 8% 3% 2% 2% Demographics: 13-17 18-24 25-34 35-44 45-54 55-64 65+ Q1 2017 % of daily podcast listeners Q1 2023 % of daily podcast listeners 13 Source: Edison Share
Slide 14: Time Spent Listening to Podcasts Up 2X in the Past 5+ Years
Time Spent Listening to Podcasts Up 2X in the Past 5+years Daily Time Spent Listening To Podcasts Among Podcast Listeners (minutes) 60 57 50 40 30 26 20 10 0 2017 2018 2019 2020 2021 2022 2023 14 Source: eMarketer; average listening per day among monthly podcast listeners 18+
Slide 15: Podcast and Radio are Complementary Advertising Services
Podcast and Radio are Complementary Advertising Services 69% 68% In-home Listening Out-of-home Listening 31% 32% Podcasts Radio 15 Source: Source: Nielsen Audio Today Report, 2022, A18+; Edison Research
Slide 16: Americans Making More Time for Podcasts
Americans Making More Time for Podcasts Mostly by Reducing Time with Social Media and Streaming Video/Music Has your podcast listening taken the place of time you used to spend with any the following? (Select all that apply) 70% 50% 46% 29% 26% 25% 24% 16% 15% 14% Social Media YouTube Streaming Stre
Slide 17: Digital Ex-Podcast Generates Additional Growth and TAM Opportunities
Digital Ex-Podcast Generates Additional Growth and TAM Opportunities Q2 2023 Revenue: $164M FY 2022 Revenue: $663M 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 18: iHeartRadio Maintains Unparalleled Reach as TV Networks Reach Declines
iHeartRadio Maintains Unparalleled Reach as TV Networks Reach Declines 276M 233M 187M 109M 72% 90% 36% 90% Reach Reach Reach Reach 2003 2022 18 Source: Nielsen Audio Nationwide/RADAR P6+,; Nielsen NPower, P6+
Slide 19: Improving Broadcast Radio Revenue Share
Improving Broadcast Radio Revenue Share Miller-Kaplan Outperformance 140.0 iHM: 127.9 120.0 LTM Revenue Index to 2010 100.0 Industry ex-iHM: 80.0 79.0 60.0 40.0 Industry ex-iHM iHM 20.0 - May-15 May-11 Apr-16 Apr-20 Feb-13 Jul-18 Feb-22 Jul-22 Jan-10 Mar-12 Aug-13 Mar-17 Aug-17 Mar-21 Nov-10 Oct-11
Slide 20: Resilient Balance Sheet and Strong Liquidity
Resilient Balance Sheet and Strong Liquidity ➢ Q2 2023 Balance Sheet Strength ▪ Cash balance $165 million; total available liquidity1 $585 million ▪ No debt maintenance covenants ▪ No material debt maturities prior to 2026 ➢ Full Year 2023 Free Cash Flow Inputs ▪ Cash taxes of approximately $15 mill
Slide 21: Dentsu Study – News Release
Dentsu Study – News Release 21 Source: https://www.dentsu.com/us/en/media-and-investors/dentsu-partners-with-six-top-audio-destinations; Published on: 1st August 2023
Slide 22: Q2 '23 Financial Results
Q2 '23 Financial Results Three Months Ended $US Dollars in millions June 30, 2023 2022 Variance Revenue $ 920.0 $ 954.0 (3.6)% Direct operating expenses 355.1 365.4 (2.8) % SG&A expenses 393.8 379.1 3.9 % Depreciation & amortization 108.1 110.8 Impairment charges 960.6 0.2 Other operating (income) e
Slide 23: Q2 YTD 2023 Financial Results
Q2 YTD 2023 Financial Results Six Months Ended $US Dollars in millions June 30, 2023 2022 Variance Revenue $ 1,731.3 $ 1,797.5 (3.7)% Direct operating expenses 699.7 695.9 0.5 % SG&A expenses 796.6 763.4 4.3 % Depreciation & amortization 216.6 224.8 Impairment charges 964.5 1.6 Other operating expen
Slide 24: iHeartMedia Q2 Revenue Streams
iHeartMedia Q2 Revenue Streams Three Months Ended $US Dollars in millions June 30, 2023 2022 Variance Revenue Broadcast Radio $ 429.2 $ 462.5 (7.2) % Networks 122.2 127.5 (4.2) % Sponsorship and Events 38.2 38.1 0.3 % Other 6.4 5.2 23.1 % Multiplatform Group $ 595.9 $ 633.3 (5.9)% Digital ex. Podcas
Slide 25: iHeartMedia Q2 YTD 2023 Revenue Streams
iHeartMedia Q2 YTD 2023 Revenue Streams Six Months Ended $US Dollars in millions June 30, 2023 2022 Variance Revenue Broadcast Radio $ 812.4 $ 877.8 (7.5) % Networks 230.1 245.1 (6.1) % Sponsorship and Events 70.8 71.7 (1.2) % Other 11.6 9.9 17.5 % Multiplatform Group $ 1,125.0 $ 1,204.5 (6.6)% Digi
Slide 26: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended $US Dollars in millions June 30, 2023 2022 Variance Revenue Political Revenue Impact: Multiplatform Group $ 3.9 $ 13.5 $ (9.6) Digital Audio Group 0.8 1.4 (0.6) Audio & Media Services Group 1.5 8.2 (6.7) Total $ 6.2 $ 23.1 $ (16.9) Six Months En
Slide 27: Capital Expenditures
Capital Expenditures $USD in millions Six Months Ended June 30, 2023 2022 Variance Multiplatform Group $ 41.3 $ 48.7 $ (7.4) Digital Audio Group 11.3 11.1 0.2 Audio & Media Services Group 4.8 4.1 0.7 Corporate 4.6 8.3 (3.7) 1 Total Gross Capital Expenditures $ 62.0 $ 72.2 $ (10.3) Less: Proceeds fro
Slide 28: Debt
Debt June 30, December 31, $USD in millions Maturity 2023 2022 iHeartCommunications, Inc. Cash and cash equivalents $ 165.3 $ 336.2 Term Loan Facility due 2026 2026 $ 1,864.0 $ 1,864.0 Incremental Term Loan Facility due 2026 2026 401.3 401.2 (1) Asset-based Revolving Credit Facility 2027 — — 6.375%
Slide 29: Appendix
29 Appendix MEDIA
Slide 30: Segment Reporting: Q2 YTD 2023 Results
Segment Reporting: Q2 YTD 2023 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, 2023 2022 % Chg 2023 2022 % Chg 2023 2022 Multiplatform Group $ 1,125.0 $ 1,204.5 (6.6) % $ 249.5 $ 328.4 (24.
Slide 31: Q2 2023 Reconciliation of Free Cash Flow to Cash Used for Operating Activities
Q2 2023 Reconciliation of Free Cash Flow to Cash Used for Operating Activities Three Months Ended ($US Dollars in thousands) June 30, 2023 2022 Cash used for operating activities $ 56,772 $ 155,801 Purchases of property, plant and equipment (22,773) (49,653) Free cash flow $ 33,999 $ 106,148 1 Net p
Slide 32: Q2 2023 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q2 2023 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Ended Three Months Ended $US Dollars in thousands June 30, March 31, 2023 2022 2023 Net income (loss) $ (882,982) $ 15,182 $ (222,363) Income tax benefit (expense) (96,357) 1,782 76,105 Interest expense, net 98,693 81,494
Slide 33: Q2 YTD 2023 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q2 YTD 2023 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Six Months Ended $US Dollars in thousands June 30, 2023 2022 Net loss $ (1,105,345) $ (33,557) Income tax (benefit) expense (20,252) (18,427) Interest expense, net 194,150 160,713 Depreciation and amortization 216,577 224,839 EBITD
Slide 34: 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