Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q1 2022 Earnings Presentation
25 slides from Iheartmedia's earnings presentation, May 5, 2022
Slide 1: First Quarter 2022 Investor Presentation
First Quarter 2022 Investor Presentation May 5, 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 Q1 2022 Consolidated Results ▪ Q1 Revenue of $843 million up 19.4% YoY; slightly exceeded high end of guidance range of up approximately 17%-19% ▪ Consolidated Adjusted EBITDA of $145 million increased 42% YoY ◦ Consolidated Adjusted EBITDA margin of 17.2%, up 275 bps from 14.5%
Slide 4: Segment Reporting: 2022 Q1 Results
Segment Reporting: 2022 Q1 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % $US Dollars in millions Three Months Ended March 31, Three Months Ended March 31, 2022 2021 % Chg 2022 2021 % Chg Q1 2022 Q1 2021 Multiplatform Group $ 571.2 $ 497.9 14.7 % $ 133.9 $ 104.8 27.8 % 23.4 % 21.0 % Digita
Slide 5: Continued Strong Digital Growth Directly Translating to Revenue Mix Shift
Continued Strong Digital Growth Directly Translating to Revenue Mix Shift Q1 2020 Q1 2022 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $781MM) (% Composition1) (Total $843MM) Audio Media Audio Media 8% 7% Services Services Podcast 2% Digital Audio 12% Podcast 8% 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: Outperforming Quarterly YoY Revenue Growth MAGNA Digital Ex-Podcast
Outperforming Quarterly YoY Revenue Growth MAGNA Digital Ex-Podcast 105% 90% 75% 60% 45% 30% +22% 15% +16% Industry 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 -15% 7 Source: MAGNA US Media Forecast Spring 2022, MAGNA Digital Ex-Podcast includes: Audio (ex-podcast), Social, Display, Video, Searc
Slide 8: Digital Ex-Podcast Generates Additional Growth and TAM Opportunities
Digital Ex-Podcast Generates Additional Growth and TAM Opportunities Q1 2022 Revenue: $146M 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 posit
Slide 9: Outperforming Quarterly YoY Revenue Growth MAGNA Podcast
Outperforming Quarterly YoY Revenue Growth MAGNA Podcast 200% 160% 120% 80% +79% 40% +22% Industry 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 9 Source: MAGNA US Media Forecast Spring 2022
Slide 10: iHeartPodcast Network's Growth Is Highly Organic
1 iHeartPodcast Network’s Growth Is Highly Organic iHeartPodcast Network Monthly Streams/Downloads 443M 186M +72% +186M 35% New Podcasts1 257M 65% Existing Podcasts1 Mar 2021 Mar 2022 Mar 2021 to Mar 2022 YoY Growth Source: Podtrac, March 2022 vs March 2021 10 1 "Existing" and "New" Podcasts reflect
Slide 11: 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 12: iHeartPodcast Network's Audience Has Grown 6X Faster than Its Closest Publisher Competitor Since 2019
iHeartPodcast Network’s Audience Has Grown 6X Faster than Its Closest Publisher Competitor Since 2019 Growth vs 2019 Podtrac U.S. Unique Monthly Podcast Audience 35 M +125% 30 M 25 M +20% 20 M 15 M +80% 10 M +75% 5M 0M 12 Source: Podtrac Rankings, Jan 2019 – March 2022
Slide 13: 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 RANKING THE TOP 10 by category 1MM+ LISTENS 110 39 49 39 16 19 23 14 18 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in for 21 consecutive months
Slide 14: iHeartRadio is the #1 Podcast Publisher in the US with More Downloads than the Next 3 Publishers Combined
iHeartRadio is the #1 Podcast Publisher in the US with More Downloads than the Next 3 Publishers Combined PODCAST PUBLISHER MONTHLY DOWNLOADS MONTHLY AUDIENCE 443,332,000 33,445,000 184,577,000 21,505,000 93,344,000 12,995,000 127,507,000 12,017,000 63,526,000 8,948,000 54,858,000 8,200,000 79,305,0
Slide 15: LTM Revenue Index to 2010
15 LTM Revenue Index to 2010 20.0 40.0 60.0 80.0 120.0 140.0 - 100.0 Jan-10 May-10 Sep-10 Jan-11 Jun-11 Oct-11 Feb-12 Jul-12 Nov-12 Mar-13 Aug-13 Dec-13 Source: Miller Kaplan as of March 2022, Broadcast and Network Radio Gross Revenue Apr-14 Aug-14 Jan-15 May-15 Sep-15 Feb-16 Industry ex-iHM Jun-16
Slide 16: Q1 '22 Financial Results
Q1 '22 Financial Results Three Months Three Months Ended Ended $US Dollars in millions March 31, December 31, 2022 2021 Variance 2021 Revenue $ 843.5 $ 706.7 19.4 % $ 1,062.0 Direct operating expenses 330.5 292.8 12.9 % 385.6 SG&A expenses 384.3 342.3 12.3 % 414.3 Depreciation & amortization 114.1 1
Slide 17: iHeartMedia Q1 Revenue Streams
iHeartMedia Q1 Revenue Streams Three Months Ended $US Dollars in millions March 31, 2022 2021 Variance Revenue Broadcast Radio $ 416.5 $ 358.5 16.2 % Networks 117.6 115.1 2.1 % Sponsorship and Events 33.6 22.4 50.1 % Other 3.5 1.9 87.0 % Multiplatform Group $ 571.2 $ 497.9 14.7 % Digital ex. Podcast
Slide 18: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended $US Dollars in millions March 31, 2022 2021 Variance Revenue Political Revenue Impact: Multiplatform Group $ 5.7 $ 3.4 $ 2.3 Digital Audio Group 1.3 0.5 0.8 Audio & Media Services Group 2.2 2.2 — Total $ 9.2 $ 6.1 $ 3.1 18 Figures may not foot d
Slide 19: Capital Expenditures
Capital Expenditures $USD in millions Three Months Ended March 31, 2022 2021 Variance Multiplatform Group $ 12.3 $ 10.1 $ 2.2 Digital Audio Group 5.2 5.4 (0.2) Audio & Media Services Group 1.7 1.1 0.6 Corporate 3.4 2.4 1.0 Total Gross Capital Expenditures $ 22.6 $ 19.0 $ 3.6 Proceeds from Real Estat
Slide 20: Debt
Debt March 31, December 31, $USD in millions Maturity 2022 2021 iHeartCommunications, Inc. Cash and cash equivalents $ 279.7 $ 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 Asset-based (1) Revolving Credit Facility 2023 — — 6.375%
Slide 21: Appendix
21 Appendix MEDIA
Slide 22: Q1 2022 Reconciliation of Free Cash Flow to Cash Provided by Operating Activities
Q1 2022 Reconciliation of Free Cash Flow to Cash Provided by Operating Activities Three Months Ended (In thousands) March 31, 2022 2021 Cash provided by operating activities $ (52,212) $ 71,728 Purchases of property, plant and equipment (22,557) (18,950) Free cash flow $ (74,769) $ 52,778 1 Net proc
Slide 23: Q1 2022 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q1 2022 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Ended $US Dollars in thousands March 31, 2022 2021 Net income (loss) $ (48,739) $ (242,056) Income tax (benefit) expense (20,209) 79,935 Interest expense, net 79,219 85,121 Depreciation and amortization 114,051 107,363 EBI
Slide 24: Q1 2022 Reconciliation of Revenue Excluding Effects of Political Revenue to Revenue
Q1 2022 Reconciliation of Revenue Excluding Effects of Political Revenue to Revenue Three Months Ended (In thousands) March 31, 2022 2021 Consolidated revenue $ 843,458 $ 706,665 Excluding: Political revenue (9,163) (6,071) Consolidated revenue excluding effects of political revenue $ 834,295 $ 700,
Slide 25: 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