Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q1 2024 Earnings Presentation
29 slides from Iheartmedia's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Investor Presentation
First Quarter 2024 Investor Presentation May 9, 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 Q1 2024 Consolidated Results ▪ Q1 Revenue of $799 million, down 1.5%; in line with guidance range of flat to down 2% ◦ Excluding Q1 Political Revenue, Q1 Revenue down 2.5% ▪ Consolidated Adjusted EBITDA of $105 million, within previously disclosed guidance range of $100 million
Slide 4: Segment Reporting: 2024 Q1 Results
Segment Reporting: 2024 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, 2024 2023 % Chg 2024 2023 % Chg 2024 2023 Multiplatform Group $ 493.5 $ 529.0 (6.7) % $ 77.2 $ 87.1 (11.3
Slide 5: Continued Digital Growth Directly Translating to Revenue Mix Shift
Continued Digital Growth Directly Translating to Revenue Mix Shift Q1 2020 Q1 2024 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $781MM) (% Composition1) (Total $799MM) Audio Media Audio Media 8% Services 9% Services Podcast 2% Digital Podcast 11% Audio 12% Group Digital Audio 30
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 193,127,000 31,811,000 113,684,000 19,419,000 76,015,000 16,764,000 50,021,000 9,967,000 42,466,000 9,221,000 30,861,000 8,035,000 41,391,
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 38 44 40 17 25 21 15 14 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in for 45 consec
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 20% Digital Ad-Enabled iHeartRadio Audio Ad-Enabled Spotify 12% Ad-Enabled Pandora AM/FM Radio 68% Streaming Ad-Enabled SiriusXM 11 Source: Edison Share of Ear, Q1 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 Consumer Reach of US Adults 18+ Reach IHEARTMEDIA BROADCAST RADIO 89% SPOTIFY 37% PODCASTS 47% ABC 32% CBS 55% INSTAGRAM 47% TIKTOK 33% FOX 20% Source: Nielsen nPower - Linear TV; Scarborough USA+ - Instagram; Comscore Media Metrix; TikTok,
Slide 15: 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% (including) 28% 24% 17% 2016 2017 2018 2019 2020 2021 2022 2023 1
Slide 16: Digital Ex-Podcast Generates Additional Growth and TAM Opportunities
Digital Ex-Podcast Generates Additional Growth and TAM Opportunities Q1 2024 Revenue: $148M 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 17: 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 17 Source: Broadcast Radio: Nielsen Audio Nationwide, P6+, Spring 2022/2023; Television: Nelsen nPower, P6+, December 2022/2023, L+SD
Slide 18: 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 75.3 60.0 40.0 Industry ex-iHM iHM 20.0 - Nov-10 May-13 Mar-14 May-18 Mar-19 Nov-20 May-23 Mar-24 Jul-12 Nov-15 Jul-17 Jul-22 Jan-10 Jan-15 Jan-20 Sep-11
Slide 19: Iconic Moments at iHeartRadio Music Awards Result in Massive Reach
Iconic Moments at iHeartRadio Music Awards Result in Massive Reach and Engagement Cher and Jennifer Hudson Beyonce and Stevie Wonder Avril Lavigne and Green Day TLC and Latto 84 BILLION ~9M MILLION 4.8 BILLION SOCIAL MEDIA IMPRESSIONS WATCHED AND LISTENED ON-AIR PROMO IMPRESSIONS 3.0X THE SUPER BOWL
Slide 20: Resilient Balance Sheet and Strong Liquidity
Resilient Balance Sheet and Strong Liquidity ➢ Q1 2024 Balance Sheet Strength ▪ Cash balance $361 million; total available liquidity1 $788 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 21: Q1 '24 Financial Results
Q1 '24 Financial Results Three Months Ended $US Dollars in millions March 31, 2024 2023 Variance Revenue $ 799.0 $ 811.2 (1.5)% Direct operating expenses 341.4 344.6 (0.9) % SG&A expenses 385.1 402.8 (4.4) % Depreciation & amortization 105.2 108.5 Impairment charges 1.5 3.9 Other operating (income)
Slide 22: iHeartMedia Q1 Revenue Streams
iHeartMedia Q1 Revenue Streams Three Months Ended $US Dollars in millions March 31, 2024 2023 Variance Revenue Broadcast Radio $ 359.3 $ 383.2 (6.2) % Networks 102.1 108.0 (5.5) % Sponsorship and Events 27.8 32.6 (14.7) % Other 4.2 5.2 (19.2) % Multiplatform Group $ 493.5 $ 529.0 (6.7)% Digital ex.
Slide 23: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended (In millions) March 31, % 2024 2023 Change Consolidated revenue $ 799.0 $ 811.2 (1.5) % Excluding: Political revenue (11.6) (3.6) Consolidated revenue, excluding political $ 787.4 $ 807.6 (2.5)% Multiplatform Group revenue $ 493.5 $ 529.0 (6.7)
Slide 24: Capital Expenditures
Capital Expenditures $USD in millions Three Months Ended March 31, 2024 2023 Variance Multiplatform Group $ 11.7 $ 26.4 $ (14.7) Digital Audio Group 5.4 5.8 (0.4) Audio & Media Services Group 2.3 3.9 (1.6) Corporate 2.2 3.1 (0.9) Total Capital Expenditures $ 21.6 $ 39.2 $ (17.6) 24 Figures may not f
Slide 25: Debt
Debt March 31, December 31, $USD in millions Maturity 2024 2023 iHeartCommunications, Inc. Cash and cash equivalents $ 361.4 $ 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 Asset-based Revolving Credit Facility 2027 — — 6.375% Sen
Slide 26: Appendix
26 Appendix MEDIA
Slide 27: Reconciliation of Free Cash Flow to Cash Used for Operating Activities
Reconciliation of Free Cash Flow to Cash Used for Operating Activities Three Months Ended ($US Dollars in thousands) March 31, 2024 2023 Cash used for operating activities $ (59,277) $ (93,983) Purchases of property, plant and equipment (21,582) (39,165) Free cash flow $ (80,859) $ (133,148) 27
Slide 28: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Ended $US Dollars in thousands March 31, 2024 2023 Net loss $ (18,108) $ (222,363) Income tax (benefit) expense (20,662) 76,105 Interest expense, net 95,515 95,457 Depreciation and amortization 105,162 108,512 EBITDA $ 161,907 $ 5
Slide 29: 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