Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q1 2023 Earnings Presentation
27 slides from Iheartmedia's earnings presentation, May 2, 2023
Slide 1: First Quarter 2023 Investor Presentation
First Quarter 2023 Investor Presentation May 2, 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 Q1 2023 Consolidated Results ▪ Q1 Revenue of $811 million, down 3.8%; above the guidance range of down mid-single digits ▪ Consolidated Adjusted EBITDA of $93 million; above guidance range of $80 million to $90 million, compared to $145 million in Q1 2022 ▪ Cash Flows used for
Slide 4: Segment Reporting: 2023 Q1 Results
Segment Reporting: 2023 Q1 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % Three Months Ended March $US Dollars in millions Three Months Ended March 31, Three Months Ended March 31, 31, 2023 2022 % Chg 2023 2022 % Chg 2023 2022 Multiplatform Group $ 529.0 $ 571.2 (7.4) % $ 87.1 $ 133.9 (35.
Slide 5: Continued Digital Growth Directly Translating to Revenue Mix Shift
Continued Digital Growth Directly Translating to Revenue Mix Shift Q1 2020 Q1 2023 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $781MM) (% Composition1) (Total $811MM) Audio Media Audio Media 8% Services 8% Services Podcast 2% Digital Podcast 9% 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: 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 96 34 47 48 19 29 21 15 18 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in for 33 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 386,173,000 33,908,000 1 176,213,000 25,022,000 183,582,000 20,110,000 126,355,000 12,233,000 71,499,000 11,369,000 81,138,000 9,445,000 43,6
Slide 10: iHeartPodcast Network's Monthly Downloads Have Grown More than the Next 2 Publishers
iHeartPodcast Network’s Monthly Downloads Have Grown More than the Next 2 Publishers Combined Podtrac: Monthly Podcast Streams & Downloads Growth since 2019 500M 400M +224M 300M +26M 200M +129M1 100M +73M 0M Source: Podtrac Rankings, Global Steams & Downloads, Jan 2019 – March 2023 10 1 Wondery grow
Slide 11: Digital Ex-Podcast Generates Additional Growth and TAM Opportunities
Digital Ex-Podcast Generates Additional Growth and TAM Opportunities Q1 2023 Revenue: $147M 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 12: Improving Broadcast Radio Revenue Share
Improving Broadcast Radio Revenue Share Miller-Kaplan Outperformance 140.0 iHM: 129.9 120.0 LTM Revenue Index to 2010 100.0 Industry ex-iHM: 80.0 80.2 60.0 40.0 Industry ex-iHM iHM 20.0 - Nov-10 Nov-15 Nov-20 Jan-10 Sep-12 Jan-15 Sep-17 Jan-20 Jul-19 Sep-22 May-11 May-16 May-21 Jul-14 Mar-13 Aug-13
Slide 13: Daily Podcast Reach is Accelerating Across Every Age Group
Daily Podcast Reach is Accelerating Across Every Age Group -- Podcasts Hit an All-Time High in 2023 Daily Podcast Reach 45% P25-34 43% 36% P35-44 32% 30% 27% P13-24 P45-54 18% 19% P55-64 11% 9% 10% P65+ 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 13 Source: Edison Share of Ear, P13+
Slide 14: 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 15: 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 Podca sts ( Weekly) Netf lix Podcasts Subscribers (United States) 15 Source: Podcasts: Edison Research/The infinite Dial 2023; Netflix: https://flixpatrol.com/streaming-service/netflix/subscribers/b
Slide 16: 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 16 Source: Source: Nielsen Audio Today Report, 2022, A18+; Edison Research
Slide 17: 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 17 Source: eMarketer; average listening per day among monthly podcast listeners 18+
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: Resilient Balance Sheet and Strong Liquidity
Resilient Balance Sheet and Strong Liquidity ➢ Q1 2023 Balance Sheet Strength ▪ Cash balance $188 million; total available liquidity 1 $601 million ▪ No debt maintenance covenants ▪ No material debt maturities prior to 2026 ➢ Full Year 2023 Free Cash Flow Inputs ▪ Cash taxes of $25 to $30 million ▪
Slide 20: Q1 '23 Financial Results
Q1 '23 Financial Results Three Months Ended Three Months Ended $US Dollars in millions March 31, December 31, 2023 2022 Variance 2022 Revenue $ 811.2 $ 843.5 (3.8)% $ 1,125.9 Direct operating expenses 344.6 330.5 4.3 % 412.7 SG&A expenses 402.8 384.3 4.8 % 429.7 Depreciation & amortization 108.5 114
Slide 21: iHeartMedia Q1 Revenue Streams
iHeartMedia Q1 Revenue Streams Three Months Ended $US Dollars in millions March 31, 2023 2022 Variance Revenue Broadcast Radio $ 383.2 $ 415.2 (7.7) % Networks 108.0 117.6 (8.2) % Sponsorship and Events 32.6 33.6 (3.0) % Other 5.2 4.8 10.5 % Multiplatform Group $ 529.0 $ 571.2 (7.4)% Digital ex. Pod
Slide 22: Capital Expenditures
Capital Expenditures $USD in millions Three Months Ended March 31, 2023 2022 Variance Multiplatform Group $ 26.4 $ 12.3 $ 14.1 Digital Audio Group 5.8 5.2 0.6 Audio & Media Services Group 3.9 1.7 2.2 Corporate 3.1 3.4 (0.3) 1 Total Gross Capital Expenditures $ 39.2 $ 22.6 $ 16.6 Less: Proceeds from
Slide 23: Debt
Debt March 31, December 31, $USD in millions Maturity 2023 2022 iHeartCommunications, Inc. Cash and cash equivalents $ 187.9 $ 336.2 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: Q1 2023 Reconciliation of Free Cash Flow to Cash Used for Operating Activities
Q1 2023 Reconciliation of Free Cash Flow to Cash Used for Operating Activities Three Months Ended ($US Dollars in thousands) March 31, 2023 2022 Cash used for operating activities $ (93,983) $ (52,212) Purchases of property, plant and equipment (39,165) (22,557) Free cash flow $ (133,148) $ (74,769)
Slide 26: Q1 2023 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q1 2023 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Three Months Ended Ended $US Dollars in thousands March 31, December 31, 2023 2022 2022 Net loss $ (222,363) $ (48,739) $ 80,663 Income tax benefit (expense) 76,105 (20,209) 9,734 Interest expense, net 95,457 79,219 93,071
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