Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q3 2024 Earnings Presentation
30 slides from Iheartmedia's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Investor Presentation
Third Quarter 2024 Investor Presentation November 7, 2024 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 Announced Debt Exchange Transactions and Cost Efficiency Actions ▪ Entered into a transaction support agreement with a group of debt holders representing approximately 80% of the Company’s outstanding term loan and notes to exchange $4.1 billion of existing debt; extend maturit
Slide 4: Segment Reporting: 2024 Q3 Results
Segment Reporting: 2024 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, 2024 2023 % Chg 2024 2023 % Chg 2024 2023 Multiplatform Group $ 619.5 $ 626.4 (1.1) % $ 129.9
Slide 5: Continued Digital Growth Directly Translating to Revenue Mix Shift
Continued Digital Growth Directly Translating to Revenue Mix Shift Q1 2020 Q3 2024 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $781MM) (% Composition1) (Total $1,008MM) Audio Media Audio Media 8% Services 9% Services Podcast 2% Digital Audio 12% Podcast 11% Group Digital Audio
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 PUBLISHER US STREAMS & DOWNLOADS US UNIQUE MONTHLY AUDIENCE 165,787,000 30,644,000 29,075,000 9,010,000 19,983,000 6,345,000 22,824,000 6,081,000 35,903,000 5,805,000 15,742,000 5,546,000 16,151,000 5,401,000 33,469,000 5,274,000 16,961,000 5,106,
Slide 9: And 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 In Podtrac RANKING THE TOP 10 by category 1MM+ LISTENS* 100 29 37 15 10 8 13 4 7 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in all for 51 conse
Slide 10: Audio is a Huge Part of Consumers' Lives
Audio is a Huge Part of Consumers’ Lives Daily Media Consumption Share Linear TV 24% Print 6% Audio1 31% 39% Digital/Video Social Source: WARC Data 2021, GWI; Note: Audio includes broadcast radio, online audio and podcasts 10 1. Audio represents largest category of daily media consumption when digit
Slide 11: Vast Majority of the 31% of Audio Listening is Radio & Podcasts
Vast Majority of the 31% of Audio Listening is Radio & Podcasts Percentage time with Ad-Enabled Audio Podcasts 19% Digital Ad-Enabled iHeartRadio Audio Ad-Enabled Spotify 14% Ad-Enabled Pandora Ad-Enabled SiriusXM AM/FM Radio 67% Streaming 11 Source: Edison Share of Ear, Q2 2024, P18+
Slide 12: Podcast and Radio are Complementary Advertising Services
Podcast and Radio are Complementary Advertising Services 65% 65% In-home Listening Out-of-home Listening 35% 35% Podcasts Radio 12 Source: Source: Nielsen Audio Today Report, 2023, A18+; Edison Research Q4 2023
Slide 13: Podcasts Win on Time Spent vs Social Media
Podcasts Win on Time Spent vs Social Media Daily Time Spent With Media by US Adult Population1 (Minutes) More Time is 79% Say Spent with Podcasts Have 25 Podcasts than Superior Content TikTok Daily1 vs Social Media2 19 18 15 Podcasting Expected to See 8 In 10 the Most Growth Podcast Listeners of any
Slide 14: Broadcast Radio provides Additional Consumers for Marketers
Broadcast Radio provides Additional Consumers for Marketers U.S. Adults 18+ Reach Data according to Nielsen & Comscore BROADCAST RADIO 91% iHEARTMEDIA BROADCAST RADIO 89% LINEAR TV 72% OTT 66% (including ad free OTT) SPOTIFY 45% (including ad free Spotify) PODCASTS 47% INSTAGRAM 47% TIKTOK 33% Sourc
Slide 15: Digital Ex-Podcast Generates Additional Growth and TAM Opportunities
Digital Ex-Podcast Generates Additional Growth and TAM Opportunities Q3 2024 Revenue: $187M FY 2023 Revenue: $661M 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 16: iHeartRadio's AM/FM Maintains Unparalleled Reach as TV Networks Reach Declines
iHeartRadio’s AM/FM Maintains Unparalleled Reach as TV Networks Reach Declines 276M 233M 197M 130M 76% 90% 42% 89% Reach Reach Reach Reach 2003 2023 16 Source: Broadcast Radio: Nielsen Audio Nationwide, P6+, Spring 2022/2023; Television: Nelsen nPower, P6+, December 2022/2023, L+SD
Slide 17: Improving Broadcast Radio Revenue Share
Improving Broadcast Radio Revenue Share Miller-Kaplan Outperformance 140.0 iHM: 120.0 125.3 LTM Revenue Index to 2010 100.0 Industry ex-iHM: 80.0 75.0 60.0 40.0 Industry ex-iHM iHM 20.0 - Apr-18 May-17 Jul-15 Feb-20 Aug-14 Mar-19 Oct-23 Dec-10 Nov-11 Oct-12 Jun-16 Dec-21 Nov-22 Jan-10 Jan-21 Sep-13
Slide 18: Q3 '24 Financial Results
Q3 '24 Financial Results Three Months Ended $US Dollars in millions September 30, 2024 2023 Variance Revenue $ 1,008.1 $ 953.0 5.8 % Direct operating expenses 409.7 380.0 7.8 % SG&A expenses 418.8 393.6 6.4 % Depreciation & amortization 101.3 106.5 Impairment charges 0.4 0.6 Other operating (income)
Slide 19: Q3 YTD 2024 Financial Results
Q3 YTD 2024 Financial Results Nine Months Ended $US Dollars in millions September 30, 2024 2023 Variance Revenue $ 2,736.3 $ 2,684.2 1.9 % Direct operating expenses 1,133.2 1,079.7 5.0 % SG&A expenses 1,235.6 1,190.2 3.8 % Depreciation & amortization 310.8 323.0 Impairment charges 922.1 965.1 Other
Slide 20: iHeartMedia Q3 Revenue Streams
iHeartMedia Q3 Revenue Streams Three Months Ended $US Dollars in millions September 30, 2024 2023 Variance Revenue Broadcast Radio $ 448.8 $ 455.1 (1.4) % Networks 115.3 116.3 (0.9) % Sponsorship and Events 50.3 49.5 1.7 % Other 5.1 5.4 (6.4) % Multiplatform Group $ 619.5 $ 626.4 (1.1)% Digital ex.
Slide 21: iHeartMedia Q3 YTD Revenue Streams
iHeartMedia Q3 YTD Revenue Streams Nine Months Ended $US Dollars in millions September 30, 2024 2023 Variance Revenue Broadcast Radio $ 1,233.6 $ 1,267.5 (2.7) % Networks 324.0 346.5 (6.5) % Sponsorship and Events 117.3 120.3 (2.5) % Other 14.0 17.1 (17.8) % Multiplatform Group $ 1,688.9 $ 1,751.3 (
Slide 22: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended Nine Months Ended (In millions) September 30, % September 30, % 2024 2023 Change 2024 2023 Change Consolidated revenue $ 1,008.1 $ 953.0 5.8 % $ 2,736.3 $ 2,684.2 1.9 % Excluding: Political revenue (44.0) (8.0) (70.5) (18.2) Consolidated revenue
Slide 23: Capital Expenditures
Capital Expenditures $USD in millions Nine Months Ended September 30, 2024 2023 Variance Multiplatform Group $ 38.2 $ 52.1 $ (13.9) Digital Audio Group 17.0 17.3 (0.3) Audio & Media Services Group 5.8 6.3 (0.5) Corporate 11.1 14.7 (3.6) Total Capital Expenditures $ 72.1 $ 90.4 $ (18.3) Less: Proceed
Slide 24: Debt
Debt September 30, December 31, $USD in millions Maturity 2024 2023 iHeartCommunications, Inc. Cash and cash equivalents $ 431.8 $ 346.4 Term Loan Facility due 2026 2026 $ 1,864.0 $ 1,864.0 Incremental Term Loan Facility due 2026 2026 401.2 401.2 6.375% Senior Secured Notes 2026 800.0 800.0 5.25% Se
Slide 25: Appendix
25 Appendix MEDIA
Slide 26: Segment Reporting: Q3 YTD 2024 Results
Segment Reporting: Q3 YTD 2024 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, 2024 2023 % Chg 2024 2023 % Chg 2024 2023 Multiplatform Group $ 1,688.9 $ 1,751.3 (3.6) % $
Slide 27: Reconciliation of Free Cash Flow to Cash Provided by Operating Activities
Reconciliation of Free Cash Flow to Cash Provided by Operating Activities Three Months Ended ($US Dollars in thousands) September 30, 2024 2023 Cash provided by operating activities $ 102,765 $ 96,169 Purchases of property, plant and equipment (29,420) (28,518) Free cash flow $ 73,345 $ 67,651 1 Net
Slide 28: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Ended Three Months Ended $US Dollars in thousands September 30, June 30, 2024 2023 2024 Net loss $ (41,325) $ (8,969) $ (981,989) Income tax (benefit) expense 20,835 (9,261) (23,959) Interest expense, net 95,715 99,509 95,577 Depr
Slide 29: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Nine Months Ended $US Dollars in thousands September 30, 2024 2023 Net loss $ (1,041,422) $ (1,114,314) Income tax (benefit) expense (23,786) (29,513) Interest expense, net 286,807 293,659 Depreciation and amortization 310,849 323,028 EBITDA $
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