Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q4 2022 Earnings Presentation
30 slides from Iheartmedia's earnings presentation, Feb 28, 2023
Slide 1: Fourth Quarter 2022 Investor Presentation
Fourth Quarter 2022 Investor Presentation February 28, 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 Q4 2022 Consolidated Results ▪ Q4 Revenue of $1,126 million, up 6%; at high end of guidance of up approximately 2%-6% ◦ Excluding Q4 political Revenue, Q4 Revenue up 1% ▪ Consolidated Adjusted EBITDA of $316 million increased 7%; at middle of guidance of $305 million to $325 mi
Slide 4: Segment Reporting: 2022 Q4 Results
Segment Reporting: 2022 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, 2022 2021 % Chg 2022 2021 % Chg 2022 2021 Multiplatform Group $ 732.8 $ 726.3 0.9 % $ 230.0 $ 24
Slide 5: iHeartMedia reach and engagement
2X ~300M Reach of the largest TV Social Media network 4X the reach followers 27M TikTok of the largest ad- followers, growing enabled streaming 300% in 2022 audio player 2/3 160M Americans reached Unique monthly each month by our top 50 influencers iHeartMedia’s visitors across a network of 3,000 De
Slide 6: Continued Strong Digital Growth Directly Translating to Revenue Mix Shift
Continued Strong Digital Growth Directly Translating to Revenue Mix Shift Q1 2020 Q4 2022 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $781MM) (% Composition1) (Total $1,126MM) Audio Media Audio Media 8% Services 8% Services Podcast 2% Digital Podcast 10% Audio 12% Group Digital
Slide 7: 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 8: 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 9: Ranking the Top 10 and Leading Podcast Publisher
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 94 35 46 44 17 23 21 16 18 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in for 30 consecutive months
Slide 10: 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 412,351,000 33,059,000 1 188,440,000 24,799,000 192,112,000 19,966,000 116,158,000 10,459,000 64,196,000 10,406,000 45,996,000 8,589,000 75,5
Slide 11: iHeartPodcast Network's Monthly Downloads Have Grown 2X
iHeartPodcast Network’s Monthly Downloads Have Grown 2X As Much As The Next Closest Competitor Podtrac: Monthly Podcast Streams & Downloads Growth since 2019 500M +250M 400M 300M +34M 200M +141M1 100M +62M 0M Source: Podtrac Rankings, Global Steams & Downloads, Jan 2019 – Jan 2023 11 1 Wondery growt
Slide 12: Outperforming Annual YoY Revenue Growth MAGNA Podcast
Outperforming Annual YoY Revenue Growth MAGNA Podcast 148% 91% 75% Industry 42% 32% 30% FY 2020 FY 2021 FY 2022 12 Source: MAGNA US Media Forecast Winter 2022
Slide 13: Digital Ex-Podcast Generates Additional Growth and TAM Opportunities
Digital Ex-Podcast Generates Additional Growth and TAM Opportunities FY 2022 Revenue: $663M 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 14: Outperforming Annual YoY Revenue Growth MAGNA Digital Ex-Podcast
Outperforming Annual YoY Revenue Growth MAGNA Digital Ex-Podcast 56% 37% 13% 15% Industry 14% 9% FY 2020 FY 2021 FY 2022 14 Source: MAGNA US Media Forecast Winter 2022, MAGNA Digital Ex-Podcast includes: Audio (ex-podcast), Social, Display, Video, Search, and Other (i.e. Lead Generation, Classifieds
Slide 15: Improving Broadcast Radio Revenue Share
Improving Broadcast Radio Revenue Share Miller-Kaplan Outperformance 140.0 iHM: 130.4 120.0 LTM Revenue Index to 2010 100.0 Industry ex-iHM: 80.0 80.6 60.0 40.0 Industry ex-iHM iHM 20.0 - Nov-10 Nov-13 Dec-16 Dec-19 Dec-22 Sep-11 Sep-21 Jan-10 Jan-13 Jan-16 Aug-12 May-17 May-20 Jul-22 Mar-12 Mar-15
Slide 16: Resilient Balance Sheet and Improved Debt Structure
Resilient Balance Sheet and Improved Debt Structure ➢ Q4 2022 Balance Sheet Strength ▪ Cash balance $336 million; total available liquidity 1 $761 million ◦ Free Cash Flow of $165 million ▪ No debt maintenance covenants ▪ No material debt maturities prior to 2026 ➢ 8.375% Senior Unsecured Note Repur
Slide 17: Q4 '22 Financial Results
Q4 '22 Financial Results Three Months Ended Three Months Ended $US Dollars in millions December 31, September 30, 2022 2021 Variance 2022 Revenue $ 1,125.9 $ 1,062.0 6.0 % $ 988.9 Direct operating expenses 412.7 385.6 7.0 % 371.7 SG&A expenses 429.7 414.3 3.7 % 399.9 Depreciation & amortization 111.
Slide 18: FY 2022 Financial Results
FY 2022 Financial Results Year Ended $US Dollars in millions December 31, 2022 2021 Variance Revenue $ 3,912.3 $ 3,558.3 9.9 % Direct operating expenses 1,480.3 1,324.7 11.8 % SG&A expenses 1,592.9 1,519.4 4.8 % Depreciation & amortization 445.7 469.4 Impairment charges 311.5 57.7 Other operating ex
Slide 19: iHeartMedia Q4 Revenue Streams
iHeartMedia Q4 Revenue Streams Three Months Ended $US Dollars in millions December 31, 2022 2021 Variance Revenue Broadcast Radio $ 522.1 $ 519.1 0.6 % Networks 130.9 136.5 (4.1) % Sponsorship and Events 74.8 66.7 12.1 % Other 5.1 4.0 27.3 % Multiplatform Group $ 732.8 $ 726.3 0.9 % Digital ex. Podc
Slide 20: iHeartMedia FY 2022 Revenue Streams
iHeartMedia FY 2022 Revenue Streams Year Ended $US Dollars in millions December 31, 2022 2021 Variance Revenue Broadcast Radio $ 1,887.4 $ 1,812.3 4.1 % Networks 503.2 503.1 — % Sponsorship and Events 189.0 160.3 17.9 % Other 17.5 13.4 30.9 % Multiplatform Group $ 2,597.2 $ 2,489.0 4.3 % Digital ex.
Slide 21: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended $US Dollars in millions December 31, 2022 2021 Variance Revenue Political Revenue Impact: Multiplatform Group $ 33.5 $ 6.9 $ 26.6 Digital Audio Group 4.6 0.8 3.8 Audio & Media Services Group 27.8 2.8 24.9 Total $ 65.8 $ 10.5 $ 55.3 Year Ended $U
Slide 22: Capital Expenditures
Capital Expenditures $USD in millions Year Ended December 31, 2022 2021 Variance Multiplatform Group $ 119.6 $ 130.9 $ (11.3) Digital Audio Group 21.3 23.9 (2.6) Audio & Media Services Group 8.2 14.5 (6.3) Corporate 11.9 14.1 (2.1) Total Gross Capital Expenditures $ 161.0 $ 183.4 $ (22.4) Less: Proc
Slide 23: Debt
Debt December 31, December 31, $USD in millions Maturity 2022 2021 iHeartCommunications, Inc. Cash and cash equivalents $ 336.2 $ 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 (1) Asset-based Revolving Credit Facility 2027 — — 6.3
Slide 24: Appendix
24 Appendix MEDIA
Slide 25: Segment Reporting: FY 2022 Results
Segment Reporting: FY 2022 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % $US Dollars in millions Year Ended December 31, Year Ended December 31, Year Ended December 31, 2022 2021 % Chg 2022 2021 % Chg 2022 2021 Multiplatform Group $ 2,597.2 $ 2,489.0 4.3 % $ 765.7 $ 743.3 3.0 % 29.5 % 29.
Slide 26: Q4 2022 and FY 2022 Reconciliation of Free Cash Flow
Q4 2022 and FY 2022 Reconciliation of Free Cash Flow to Cash Provided by Operating Activities Three Months Ended ($US Dollars in thousands) December 31, 2022 2021 Cash provided by operating activities $ 213,376 $ 133,980 Purchases of property, plant and equipment (48,402) (82,037) Free cash flow $ 1
Slide 27: Q4 2022 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Q4 2022 Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA Three Months Three Months Ended Ended $US Dollars in thousands December 31, September 30, 2022 2021 2022 Net income (loss) $ 80,663 $ 111,954 $ (309,776) Income tax (benefit) expense 9,734 (68,846) 13,412 Interest expense, net
Slide 28: FY 2022 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
FY 2022 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Year Ended $US Dollars in thousands December 31, 2022 2021 Net loss $ (262,670) $ (158,389) Income tax (benefit) expense 4,719 8,391 Interest expense, net 341,674 332,384 Depreciation and amortization 445,664 469,417 EBITDA $ 529,387 $
Slide 29: Q4 2022 Reconciliation of Revenue Excluding Effects of Political Revenue
Q4 2022 Reconciliation of Revenue Excluding Effects of Political Revenue to Revenue Three Months Ended Year Ended ($US Dollars in thousands) December 31, December 31, 2022 2021 2022 2021 Consolidated revenue $ 1,125,890 $ 1,062,019 $ 3,912,283 $ 3,558,340 Excluding: Political revenue (65,817) (10,54
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