Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q2 2024 Earnings Presentation
30 slides from Iheartmedia's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter 2024 Investor Presentation
Second Quarter 2024 Investor Presentation August 8, 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 Q2 2024 Consolidated Results ▪ Q2 Revenue of $929 million, up 1.0%; above guidance of approximately flat ◦ Excluding Q2 Political Revenue, Q2 Revenue flat ▪ Consolidated Adjusted EBITDA of $150 million, within previously disclosed guidance range of $140 million to $160 million,
Slide 4: Segment Reporting: 2024 Q2 Results
Segment Reporting: 2024 Q2 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % $US Dollars in millions Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2024 2023 % Chg 2024 2023 % Chg 2024 2023 Multiplatform Group $ 575.9 $ 595.9 (3.4) % $ 104.3 $ 162.4 (35.8)
Slide 5: Continued Digital Growth Directly Translating to Revenue Mix Shift
Continued Digital Growth Directly Translating to Revenue Mix Shift Q1 2020 Q2 2024 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $781MM) (% Composition1) (Total $929MM) Audio Media Audio Media 8% Services 8% Services Podcast 2% Digital Podcast 11% Audio 12% Group Digital Audio 31
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 PUBLISHER US STREAMS & DOWNLOADS US UNIQUE MONTHLY AUDIENCE 154,371,000 29,056,000 99,534,000 17,996,000 26,290,000 8,143,000 32,788,000 6,341,000 17,874,000 5,633,000 32,287,000 5,603,000 17
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* 102 31 35 20 13 13 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in all for 49 consecutive
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 45% PODCASTS 47% ABC 32% CBS 34% INSTAGRAM 47% TIKTOK 33% FOX 17% Source: Nielsen nPower - Linear TV; Scarborough USA+ - Instagram; Comscore Media Metrix; TikTok,
Slide 15: Digital Ex-Podcast Generates Additional Growth and TAM Opportunities
Digital Ex-Podcast Generates Additional Growth and TAM Opportunities Q2 2024 Revenue: $181M 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 75.1 60.0 40.0 Industry ex-iHM iHM 20.0 - May-12 May-16 May-20 May-24 Mar-13 Mar-17 Mar-21 Oct-10 Aug-11 Oct-14 Aug-15 Oct-18 Aug-19 Oct-22 Aug-23 Dec-13
Slide 18: Q2 '24 Financial Results
Q2 '24 Financial Results Three Months Ended $US Dollars in millions June 30, 2024 2023 Variance Revenue $ 929.1 $ 920.0 1.0 % Direct operating expenses 382.0 355.1 7.6 % SG&A expenses 431.6 393.8 9.6 % Depreciation & amortization 104.4 108.1 Impairment charges 920.2 960.6 Other operating (income) ex
Slide 19: Q2 YTD 2024 Financial Results
Q2 YTD 2024 Financial Results Six Months Ended $US Dollars in millions June 30, 2024 2023 Variance Revenue $ 1,728.1 $ 1,731.3 (0.2)% Direct operating expenses 723.4 699.7 3.4 % SG&A expenses 816.8 796.6 2.5 % Depreciation & amortization 209.5 216.6 Impairment charges 921.7 964.5 Other operating exp
Slide 20: iHeartMedia Q2 Revenue Streams
iHeartMedia Q2 Revenue Streams Three Months Ended $US Dollars in millions June 30, 2024 2023 Variance Revenue Broadcast Radio $ 425.5 $ 429.2 (0.9) % Networks 106.6 122.2 (12.8) % Sponsorship and Events 39.1 38.2 2.4 % Other 4.7 6.4 (26.6) % Multiplatform Group $ 575.9 $ 595.9 (3.4)% Digital ex. Pod
Slide 21: iHeartMedia Q2 YTD 2024 Revenue Streams
iHeartMedia Q2 YTD 2024 Revenue Streams Six Months Ended $US Dollars in millions June 30, 2024 2023 Variance Revenue Broadcast Radio $ 784.8 $ 812.4 (3.4) % Networks 208.6 230.1 (9.3) % Sponsorship and Events 67.0 70.8 (5.4) % Other 9.0 11.6 (23.2) % Multiplatform Group $ 1,069.4 $ 1,125.0 (4.9)% Di
Slide 22: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended Six Months Ended (In millions) June 30, % June 30, % 2024 2023 Change 2024 2023 Change Consolidated revenue $ 929.1 $ 920.0 1.0 % $ 1,728.1 $ 1,731.3 (0.2) % Excluding: Political revenue (14.9) (6.7) (26.5) (10.3) Consolidated revenue, excluding
Slide 23: Capital Expenditures
Capital Expenditures $USD in millions Six Months Ended June 30, 2024 2023 Variance Multiplatform Group $ 24.6 $ 41.3 $ (16.7) Digital Audio Group 11.1 11.3 (0.2) Audio & Media Services Group 4.5 4.8 (0.3) Corporate 2.6 4.6 (2.0) Total Capital Expenditures $ 42.8 $ 62.0 $ (19.2) Less: Proceeds from R
Slide 24: Debt
Debt June 30, December 31, $USD in millions Maturity 2024 2023 iHeartCommunications, Inc. Cash and cash equivalents $ 364.7 $ 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% Senior
Slide 25: Appendix
25 Appendix MEDIA
Slide 26: Segment Reporting: Q2 YTD 2024 Results
Segment Reporting: Q2 YTD 2024 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % $US Dollars in millions Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2024 2023 % Chg 2024 2023 % Chg 2024 2023 Multiplatform Group $ 1,069.4 $ 1,125.0 (4.9) % $ 181.4 $ 249.5 (27.
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) June 30, 2024 2023 Cash provided by operating activities $ 26,729 $ 56,772 Purchases of property, plant and equipment (21,172) (22,773) Free cash flow $ 5,557 $ 33,999 1 Net procee
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 June 30, March 31, 2024 2023 2024 Net loss $ (981,989) $ (882,982) $ (18,108) Income tax (benefit) expense (23,959) (96,357) (20,662) Interest expense, net 95,577 98,693 95,515 Dep
Slide 29: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Six Months Ended $US Dollars in thousands June 30, 2024 2023 Net loss $ (1,000,097) $ (1,105,345) Income tax (benefit) expense (44,621) (20,252) Interest expense, net 191,092 194,150 Depreciation and amortization 209,518 216,577 EBITDA $ (644,
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