Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q4 2023 Earnings Presentation
31 slides from Iheartmedia's earnings presentation, Feb 29, 2024
Slide 1: Fourth Quarter 2023 Investor Presentation
Fourth Quarter 2023 Investor Presentation February 29, 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 Q4 2023 Consolidated Results ▪ Q4 Revenue of $1,067 million, down 5.2%; slightly better than the guidance range of down high single digits ◦ Excluding Q4 Political Revenue, Q4 Revenue flat ▪ Consolidated Adjusted EBITDA of $208 million, within previously disclosed guidance rang
Slide 4: Segment Reporting: 2023 Q4 Results
Segment Reporting: 2023 Q4 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % Three Months Ended $US Dollars in millions Three Months Ended December 31, Three Months Ended December 31, December 31, 2023 2022 % Chg 2023 2022 % Chg 2023 2022 Multiplatform Group $ 684.0 $ 732.8 (6.7) % $ 141.5 $
Slide 5: Continued Digital Growth Directly Translating to Revenue Mix Shift
Continued Digital Growth Directly Translating to Revenue Mix Shift Q1 2020 Q4 2023 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $781MM) (% Composition1) (Total $1,067MM) Audio Media Audio Media 8% Services 6% Services Podcast 2% Digital Podcast 12% Audio 12% 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 PODCAST PUBLISHER MONTHLY DOWNLOADS MONTHLY AUDIENCE 252,315,000 29,816,000 112,858,000 18,420,000 129,193,000 18,184,000 63,339,000 8,749,000 51,322,000 8,720,000 35,676,000 7,593,000 50,096,000 5,933,000 23,105,000 5,482,000 28,236,000 4,897,000
Slide 9: 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* 108 35 39 37 17 24 20 15 14 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in for 42 consec
Slide 10: 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 Industry Share Of Ad-Enabled Audio Time Podcasts 21% AM/FM Radio Ad-Enabled Pandora 4% 71% 4% Ad-Enabled Spotify 1% <1% Ad-Enabled Amazon Music 10 Source: Edison Share of Ear, Q4 2023 P18+; Pand
Slide 11: 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 11 Source: Source: Nielsen Audio Today Report, 2023, A18+; Edison Research Q4 2023
Slide 12: 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 13: Broadcast Radio provides Additional Consumers for Marketers
Broadcast Radio provides Additional Consumers for Marketers Consumer Reach of US Adults 18+ Reach BROADCAST RADIO 91% LINEAR TV 72% OTT 66% SPOTIFY 37% PODCASTS 42% INSTAGRAM 47% TIKTOK 33% Source: Nielsen nPower - Linear TV; Scarborough USA+ - Instagram; Comscore Media Metrix; TikTok, Spotify; eMar
Slide 14: Podcasts Make Up ~2X More Time Spent than Ad-Enabled Streaming Music
Podcasts Make Up ~2X More Time Spent than Ad-Enabled Streaming Music Share of Daily Time Spent Listening To Podcasts vs Ad-Enabled Music Streaming 83% 76% 72% 69% 64% Podcasts 58% 58% 52% 42% 42% 48% 36% Ad-Enabled Music Streaming 31% 28% 24% (including) 17% 2016 2017 2018 2019 2020 2021 2022 2023 1
Slide 15: Digital Ex-Podcast Generates Additional Growth and TAM Opportunities
Digital Ex-Podcast Generates Additional Growth and TAM Opportunities Q4 2023 Revenue: $186M 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: 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: 120.0 125.6 LTM Revenue Index to 2010 100.0 Industry ex-iHM: 80.0 75.5 60.0 40.0 Industry ex-iHM iHM 20.0 - Apr-11 Apr-16 Feb-20 Apr-23 Aug-10 Aug-17 May-21 Aug-22 Nov-11 Jul-12 Mar-13 Mar-18 Nov-18 Jan-10 Oct-13 Jan-15
Slide 18: Resilient Balance Sheet and Strong Liquidity
Resilient Balance Sheet and Strong Liquidity ➢ Q4 2023 Balance Sheet Strength ▪ Cash balance $346 million; total available liquidity1 $772 million ▪ No debt maintenance covenants ▪ No material debt maturities prior to 2026 ➢ Full Year 2024 Cash Flow Inputs and Expectations ▪ Received cash proceeds o
Slide 19: Q4 '23 Financial Results
Q4 '23 Financial Results Three Months Ended $US Dollars in millions December 31, 2023 2022 Variance Revenue $ 1,066.8 $ 1,125.9 (5.2)% Direct operating expenses 414.6 412.7 0.5 % SG&A expenses 466.0 429.7 8.5 % Depreciation & amortization 105.5 111.5 Impairment charges — 0.2 Other operating (income)
Slide 20: FY 2023 Financial Results
FY 2023 Financial Results Year Ended $US Dollars in millions December 31, 2023 2022 Variance Revenue $ 3,751.0 $ 3,912.3 (4.1)% Direct operating expenses 1,494.2 1,480.3 0.9 % SG&A expenses 1,656.2 1,592.9 4.0 % Depreciation & amortization 428.5 445.7 Impairment charges 965.1 311.5 Other operating e
Slide 21: iHeartMedia Q4 Revenue Streams
iHeartMedia Q4 Revenue Streams Three Months Ended $US Dollars in millions December 31, 2023 2022 Variance Revenue Broadcast Radio $ 484.7 $ 520.7 (6.9) % Networks 119.9 130.9 (8.4) % Sponsorship and Events 71.1 74.8 (4.9) % Other 8.3 6.4 29.7 % Multiplatform Group $ 684.0 $ 732.8 (6.7)% Digital ex.
Slide 22: iHeartMedia FY 2023 Revenue Streams
iHeartMedia FY 2023 Revenue Streams Year Ended $US Dollars in millions December 31, 2023 2022 Variance Revenue Broadcast Radio $ 1,752.2 $ 1,883.3 (7.0) % Networks 466.4 503.2 (7.3) % Sponsorship and Events 191.4 189.0 1.3 % Other 25.4 21.6 17.2 % Multiplatform Group $ 2,435.4 $ 2,597.2 (6.2)% Digit
Slide 23: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended Year Ended (In millions) December 31, % December 31, % 2023 2022 Change 2023 2022 Change Consolidated revenue $ 1,066.8 $ 1,125.9 (5.2) % $ 3,751.0 $ 3,912.3 (4.1) % Excluding: Political revenue (12.6) (66.7) (30.9) (132.9) Consolidated revenue,
Slide 24: Capital Expenditures
Capital Expenditures $USD in millions Year Ended December 31, 2023 2022 Variance Multiplatform Group $ 58.0 $ 119.6 $ (61.6) Digital Audio Group 23.2 21.3 1.9 Audio & Media Services Group 7.4 8.2 (0.8) Corporate 14.1 11.9 2.2 Total Gross Capital Expenditures $ 102.7 $ 161.0 $ (58.3) Less: Proceeds f
Slide 25: Debt
Debt December 31, December 31, $USD in millions Maturity 2023 2022 iHeartCommunications, Inc. Cash and cash equivalents $ 346.4 $ 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 — — 6.3
Slide 26: Appendix
26 Appendix MEDIA
Slide 27: Segment Reporting: FY 2023 Results
Segment Reporting: FY 2023 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % $US Dollars in millions Year Ended December 31, Year Ended December 31, Year Ended December 31, 2023 2022 % Chg 2023 2022 % Chg 2023 2022 Multiplatform Group $ 2,435.4 $ 2,597.2 (6.2) % $ 553.4 $ 765.7 (27.7) % 22.7
Slide 28: Reconciliation of Free Cash Flow to Cash Provided for Operating Activities
Reconciliation of Free Cash Flow to Cash Provided for Operating Activities Three Months Ended ($US Dollars in thousands) December 31, 2023 2022 Cash provided by operating activities $ 154,104 $ 213,376 Purchases of property, plant and equipment (12,214) (48,402) Free cash flow $ 141,890 $ 164,974 1
Slide 29: 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 December 31, September 30, 2023 2022 2023 Net income (loss) $ 13,975 $ 80,663 $ (8,969) Income tax (benefit) expense (32,825) 9,734 (9,261) Interest expense, net 96,116 93,071 99,5
Slide 30: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Year Ended $US Dollars in thousands December 31, 2023 2022 Net loss $ (1,100,339) $ (262,670) Income tax (benefit) expense (62,338) 4,719 Interest expense, net 389,775 341,674 Depreciation and amortization 428,483 445,664 EBITDA $ (344,419) $
Slide 31: 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