Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q3 2022 Earnings Presentation
30 slides from Iheartmedia's earnings presentation, Nov 3, 2022
Slide 1: Third Quarter 2022 Investor Presentation
Third Quarter 2022 Investor Presentation November 3, 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 Q3 2022 Consolidated Results ▪ Q3 Revenue of $989 million, up 7% YoY; at high end of guidance of up approximately 3%-7% ▪ Consolidated Adjusted EBITDA of $252 million increased 10% YoY; at high end of guidance of $240 million to $255 million ◦ Consolidated Adjusted EBITDA margin
Slide 4: Segment Reporting: 2022 Q3 Results
Segment Reporting: 2022 Q3 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % Three Months Ended $US Dollars in millions Three Months Ended September 30, Three Months Ended September 30, September 30, 2022 2021 % Chg 2022 2021 % Chg 2022 2021 Multiplatform Group $ 659.9 $ 659.0 0.1 % $ 207.3 $
Slide 5: Continued Strong Digital Growth Directly Translating to Revenue Mix Shift
Continued Strong Digital Growth Directly Translating to Revenue Mix Shift Q1 2020 Q3 2022 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $781MM) (% Composition1) (Total $989MM) Audio Media Audio Media 8% Services 8% 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: 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 108 37 47 50 22 28 23 14 17 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in for 27 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 455,411,000 34,242,000 1 176,834,000 22,733,000 165,844,000 19,067,000 150,168,000 12,452,000 62,783,000 9,107,000 51,410,000 8,674,000 81,79
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 since 2019 +293M 500M 400M 300M 200M +129M1 +8M +96M 100M 0M Source: Podtrac Rankings, Global Steams & Downloads, Jan 2019 – September 2022 10 1 Wondery
Slide 11: iHeartPodcast Network's Growth Is Highly Organic
1 iHeartPodcast Network’s Growth Is Highly Organic iHeartPodcast Network Monthly Streams/Downloads 455M 174M +62% 10% New Podcasts1 +174M 282M 90% Existing Podcasts1 September 2021 September 2022 Sept. 2021 to Sept. 2022 YoY Growth Source: Podtrac, September 2022 vs September 2021 11 1 "Existing" an
Slide 12: Outperforming Quarterly YoY Revenue Growth: MAGNA Podcast
Outperforming Quarterly YoY Revenue Growth MAGNA Podcast 200% 160% 120% 80% +42% 40% +22% Industry 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 12 Source: MAGNA US Media Forecast Fall 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% +10% Industry 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 -15% 13 Source: MAGNA US Media Forecast Fall 2022, MAGNA Digital Ex-Podcast includes: Audio (ex-podcast), Social, Display, Vid
Slide 14: Digital Ex-Podcast Generates Additional Growth and TAM Opportunities
Digital Ex-Podcast Generates Additional Growth and TAM Opportunities YTD Q3 2022 Revenue: $475M 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 p
Slide 15: Improving Broadcast Radio Revenue Share
Improving Broadcast Radio Revenue Share Miller-Kaplan Outperformance 140.0 iHM: 129.2 120.0 LTM Revenue Index to 2010 100.0 Industry ex-iHM: 80.0 80.0 60.0 40.0 Industry ex-iHM iHM 20.0 - May-10 Oct-10 May-12 May-14 Oct-14 May-16 May-18 Apr-20 Apr-22 Jul-13 Jul-15 Feb-17 Jul-17 Feb-19 Jul-19 Mar-11
Slide 16: Resilient Balance Sheet and Improved Debt Structure
Resilient Balance Sheet and Improved Debt Structure ➢ Q3 2022 Balance Sheet Strength ▪ Cash balance $295 million; total available liquidity1 $718 million ◦ Free Cash Flow including net proceeds from real estate sales of $70 million ▪ No debt maintenance covenants ▪ No material debt maturities prior
Slide 17: Q3 '22 Financial Results
Q3 '22 Financial Results Three Months Ended Three Months $US Dollars in millions September 30, Ended June 30, 2022 2021 Variance 2022 Revenue $ 988.9 $ 928.1 6.6 % $ 954.0 Direct operating expenses 371.7 325.8 14.1 % 365.4 SG&A expenses 399.9 390.1 2.5 % 379.1 Depreciation & amortization 109.3 108.1
Slide 18: Q3 YTD 2022 Financial Results
Q3 YTD 2022 Financial Results Nine Months Ended $US Dollars in millions September 30, 2022 2021 Variance Revenue $ 2,786.4 $ 2,496.3 11.6 % Direct operating expenses 1,067.6 939.1 13.7 % SG&A expenses 1,163.3 1,105.1 5.3 % Depreciation & amortization 334.1 343.4 Impairment charges 311.3 49.4 Other o
Slide 19: iHeartMedia Q3 Revenue Streams
iHeartMedia Q3 Revenue Streams Three Months Ended $US Dollars in millions September 30, 2022 2021 Variance Revenue Broadcast Radio $ 485.6 $ 483.5 0.4 % Networks 127.2 127.9 (0.5) % Sponsorship and Events 42.6 42.7 (0.2) % Other 4.5 4.9 (8.1) % Multiplatform Group $ 659.9 $ 659.0 0.1 % Digital ex. P
Slide 20: iHeartMedia Q3 YTD 2022 Revenue Streams
iHeartMedia Q3 YTD 2022 Revenue Streams Nine Months Ended $US Dollars in millions September 30, 2022 2021 Variance Revenue Broadcast Radio $ 1,365.4 $ 1,293.1 5.6 % Networks 372.3 366.6 1.6 % Sponsorship and Events 114.2 93.6 22.0 % Other 12.4 9.4 33.0 % Multiplatform Group $ 1,864.4 $ 1,762.7 5.8 %
Slide 21: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended $US Dollars in millions September 30, 2022 2021 Variance Revenue Political Revenue Impact: Multiplatform Group $ 18.3 $ 5.9 $ 12.4 Digital Audio Group 2.3 0.4 1.9 Audio & Media Services Group 13.4 1.6 11.8 Total $ 34.0 $ 7.8 $ 26.1 Nine Months E
Slide 22: Capital Expenditures
Capital Expenditures $USD in millions Nine Months Ended September 30, 2022 2021 Variance Multiplatform Group $ 80.3 $ 66.5 $ 13.8 Digital Audio Group 15.9 17.9 (2.1) Audio & Media Services Group 5.4 6.3 (0.8) Corporate 11.0 10.7 0.2 Total Gross Capital Expenditures $ 112.6 $ 101.4 $ 11.2 Less: Proce
Slide 23: Debt
Debt September 30, December 31, $USD in millions Maturity 2022 2021 iHeartCommunications, Inc. Cash and cash equivalents $ 295.4 $ 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.
Slide 24: Appendix
24 Appendix MEDIA
Slide 25: Segment Reporting: Q3 YTD 2022 Results
Segment Reporting: Q3 YTD 2022 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % Nine Months Ended $US Dollars in millions Nine Months Ended September 30, Nine Months Ended September 30, September 30, 2022 2021 % Chg 2022 2021 % Chg 2022 2021 Multiplatform Group $ 1,864.4 $ 1,762.7 5.8 % $ 53
Slide 26: Q3 2022 and Q3 YTD 2022 Reconciliation of Free Cash Flow to Cash Provided by Operating Activities
Q3 2022 and Q3 YTD 2022 Reconciliation of Free Cash Flow to Cash Provided by Operating Activities Three Months Ended ($US Dollars in thousands) September 30, 2022 2021 Cash provided by operating activities $ 103,110 $ 95,736 Purchases of property, plant and equipment (40,357) (50,274) Free cash flow
Slide 27: Q3 2022 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Q3 2022 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA Three Months Ended Three Months $US Dollars in thousands September 30, Ended June 30, 2022 2021 2022 Net income (loss) $ (309,776) $ 3,673 $ 15,182 Income tax (benefit) expense 13,412 (27,147) 1,782 Interest expense, net 87,89
Slide 28: Q3 YTD 2022 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q3 YTD 2022 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Nine Months Ended $US Dollars in thousands September 30, 2022 2021 Net loss $ (343,333) $ (270,343) Income tax (benefit) expense (5,015) 77,237 Interest expense, net 248,603 252,489 Depreciation and amortization 334,144 343,408 EBI
Slide 29: Q3 2022 Reconciliation of Revenue Excluding Effects of Political Revenue to Revenue
Q3 2022 Reconciliation of Revenue Excluding Effects of Political Revenue to Revenue Three Months Ended Nine Months Ended ($US Dollars in thousands) September 30, September 30, 2022 2021 2022 2021 Consolidated revenue $ 988,930 $ 928,051 $ 2,786,393 $ 2,496,321 Excluding: Political revenue (33,968) (
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