Iheartmedia, Inc. · NASDAQ:IHRT
Iheartmedia — Q3 2023 Earnings Presentation
33 slides from Iheartmedia's earnings presentation, Nov 9, 2023
Slide 1: Third Quarter 2023 Investor Presentation
Third Quarter 2023 Investor Presentation November 9, 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 Q3 2023 Consolidated Results ▪ Q3 Revenue of $953 million, down 3.6%; slightly better than the guidance range of down mid-single digits ◦ Excluding Q3 Political Revenue, Q3 Revenue down 1% ▪ Consolidated Adjusted EBITDA of $204 million, within previously disclosed guidance rang
Slide 4: Segment Reporting: 2023 Q3 Results
Segment Reporting: 2023 Q3 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % Three Months Ended $US Dollars in millions Three Months Ended September 30, Three Months Ended September 30, September 30, 2023 2022 % Chg 2023 2022 % Chg 2023 2022 Multiplatform Group $ 626.4 $ 659.9 (5.1) % $ 162.4
Slide 5: Continued Digital Growth Directly Translating to Revenue Mix Shift
Continued Digital Growth Directly Translating to Revenue Mix Shift Q1 2020 Q3 2023 Consolidated Revenue Consolidated Revenue (% Composition1) (Total $781MM) (% Composition1) (Total $953MM) Audio Media Audio Media 8% Services 7% Services Podcast 2% Podcast 11% Digital Audio 12% Group Digital Audio 28
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 387,837,000 32,351,000 166,804,000 22,011,000 156,259,000 18,538,000 63,177,000 9,814,000 99,294,000 9,667,000 46,006,000 8,340,000 115,19
Slide 9: iHeartPodcasts Monthly Downloads Have Grown More than the Next 3 Publishers Combined
iHeartPodcasts Monthly Downloads Have Grown More than the Next 3 Publishers Combined Podtrac: Monthly Podcast Streams & Downloads Growth since 2019 500M 400M +226M 300M 200M +119M1 -2M 100M +46M 0M Source: Podtrac Rankings, Global Steams & Downloads, Jan 2019 – September 2023 9 1 Wondery growth attr
Slide 10: 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 34 49 40 17 27 23 14 17 #1 in total global Downloads #1 in unique U.S. Listeners The Only Network with shows in for 39 consec
Slide 11: 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 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 11 Source: Edison Share of Ear, Q3 2023 P18+
Slide 12: More Weekly Podcast Listeners in the U.S. Than Netflix Subscribers
There are now More Weekly Podcast Listeners in the U.S. Than Netflix Subscribers Weekly Reach 89M 67M Podcasts (Weekly) Netflix Podcasts Subscribers (United States) 12 Source: Podcasts: Edison Research/The infinite Dial 2023; Netflix: https://flixpatrol.com/streaming-service/netflix/subscribers/by-v
Slide 13: Podcasting Daily Listening Has Grown Across Every Demographic
Over the Last 6 Years Podcasting Daily Listening has Grown Triple Digits Across Every Demographic 43% 35% 32% 23% 19% 17% 10% 11% 10% 8% 8% 3% 2% 2% Demographics: 13-17 18-24 25-34 35-44 45-54 55-64 65+ Q1 2017 % of daily podcast listeners Q1 2023 % of daily podcast listeners 13 Source: Edison Share
Slide 14: Time Spent Listening to Podcasts Up 2X in the Past 5+ Years
Time Spent Listening to Podcasts Up 2X in the Past 5+years Daily Time Spent Listening To Podcasts Among Podcast Listeners (minutes) 60 57 50 40 30 26 20 10 0 2017 2018 2019 2020 2021 2022 2023 14 Source: eMarketer; average listening per day among monthly podcast listeners 18+
Slide 15: Podcast and Radio are Complementary Advertising Services
Podcast and Radio are Complementary Advertising Services 69% 68% In-home Listening Out-of-home Listening 31% 32% Podcasts Radio 15 Source: Source: Nielsen Audio Today Report, 2022, A18+; Edison Research
Slide 16: Americans Making More Time for Podcasts
Americans Making More Time for Podcasts Mostly by Reducing Time with Social Media and Streaming Video/Music Has your podcast listening taken the place of time you used to spend with any the following? (Select all that apply) 70% 50% 46% 29% 26% 25% 24% 16% 15% 14% Social Media YouTube Streaming Stre
Slide 17: Digital Ex-Podcast Generates Additional Growth and TAM Opportunities
Digital Ex-Podcast Generates Additional Growth and TAM Opportunities Q3 2023 Revenue: $165M FY 2022 Revenue: $663M 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 18: iHeartRadio Maintains Unparalleled Reach as TV Networks Reach Declines
iHeartRadio Maintains Unparalleled Reach as TV Networks Reach Declines 276M 233M 187M 115M 72% 90% 37% 89% Reach Reach Reach Reach 2003 2023 18 Source: Broadcast Radio: Nielsen Audio Nationwide, P6+, Spring 2022/2023; Television: Nelsen nPower, P6+, September 2022/2023, L+SD
Slide 19: Improving Broadcast Radio Revenue Share
Improving Broadcast Radio Revenue Share Miller-Kaplan Outperformance 140.0 iHM: 120.0 126.7 LTM Revenue Index to 2010 100.0 Industry ex-iHM: 80.0 77.7 60.0 40.0 Industry ex-iHM iHM 20.0 - Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Aug-21 Feb-22 Jan-13 Aug-16 Aug-17
Slide 20: Resilient Balance Sheet and Strong Liquidity
Resilient Balance Sheet and Strong Liquidity ➢ Q3 2023 Balance Sheet Strength ▪ Cash balance $213 million; total available liquidity1 $625 million ▪ No debt maintenance covenants ▪ No material debt maturities prior to 2026 ➢ Full Year 2023 Cash Flow Inputs ▪ Cash taxes of approximately $15 million ▪
Slide 21: Q3 '23 Financial Results
Q3 '23 Financial Results Three Months Ended $US Dollars in millions September 30, 2023 2022 Variance Revenue $ 953.0 $ 988.9 (3.6)% Direct operating expenses 380.0 371.7 2.2 % SG&A expenses 393.6 399.9 (1.6) % Depreciation & amortization 106.5 109.3 Impairment charges 0.6 309.8 Other operating (inco
Slide 22: Q3 YTD 2023 Financial Results
Q3 YTD 2023 Financial Results Nine Months Ended $US Dollars in millions September 30, 2023 2022 Variance Revenue $ 2,684.2 $ 2,786.4 (3.7)% Direct operating expenses 1,079.7 1,067.6 1.1 % SG&A expenses 1,190.2 1,163.3 2.3 % Depreciation & amortization 323.0 334.1 Impairment charges 965.1 311.3 Other
Slide 23: iHeartMedia Q3 Revenue Streams
iHeartMedia Q3 Revenue Streams Three Months Ended $US Dollars in millions September 30, 2023 2022 Variance Revenue Broadcast Radio $ 455.1 $ 484.8 (6.1) % Networks 116.3 127.2 (8.6) % Sponsorship and Events 49.5 42.6 16.3 % Other 5.4 5.3 1.9 % Multiplatform Group $ 626.4 $ 659.9 (5.1)% Digital ex. P
Slide 24: iHeartMedia Q3 YTD 2023 Revenue Streams
iHeartMedia Q3 YTD 2023 Revenue Streams Nine Months Ended $US Dollars in millions September 30, 2023 2022 Variance Revenue Broadcast Radio $ 1,267.5 $ 1,362.6 (7.0) % Networks 346.5 372.3 (6.9) % Sponsorship and Events 120.3 114.2 5.3 % Other 17.1 15.2 12.5 % Multiplatform Group $ 1,751.3 $ 1,864.4
Slide 25: Political Revenue Impact by Segment
Political Revenue Impact by Segment Three Months Ended Nine Months Ended (In thousands) September 30, % September 30, % 2023 2022 Change 2023 2022 Change Consolidated revenue $ 953.0 $ 988.9 (3.6) % $ 2,684.2 $ 2,786.4 (3.7) % Excluding: Political revenue (8.0) (34.0) (17.7) (66.2) Consolidated reve
Slide 26: Capital Expenditures
Capital Expenditures $USD in millions Nine Months Ended September 30, 2023 2022 Variance Multiplatform Group $ 52.1 $ 80.3 $ (28.2) Digital Audio Group 17.3 15.9 1.4 Audio & Media Services Group 6.3 5.4 0.9 Corporate 14.7 11.0 3.7 1 Total Gross Capital Expenditures $ 90.4 $ 112.6 $ (22.2) Less: Proc
Slide 27: Debt
Debt September 30, December 31, $USD in millions Maturity 2023 2022 iHeartCommunications, Inc. Cash and cash equivalents $ 213.5 $ 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.
Slide 28: Appendix
28 Appendix MEDIA
Slide 29: Segment Reporting: Q3 YTD 2023 Results
Segment Reporting: Q3 YTD 2023 Results Revenue Adjusted EBITDA Adjusted EBITDA Margin % Nine Months Ended $US Dollars in millions Nine Months Ended September 30, Nine Months Ended September 30, September 30, 2023 2022 % Chg 2023 2022 % Chg 2023 2022 Multiplatform Group $ 1,751.3 $ 1,864.4 (6.1) % $
Slide 30: Q3 2023 and Q3 YTD 2023 Reconciliation of Free Cash Flow
Q3 2023 and Q3 YTD 2023 Reconciliation of Free Cash Flow to Cash Provided for Operating Activities Three Months Ended ($US Dollars in thousands) September 30, 2023 2022 Cash used for operating activities $ 96,169 $ 103,110 Purchases of property, plant and equipment (28,518) (40,357) Free cash flow $
Slide 31: Q3 2023 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q3 2023 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Ended Three Months Ended $US Dollars in thousands September 30, June 30, 2023 2022 2023 Net loss $ (8,969) $ (309,776) $ (882,982) Income tax benefit (expense) (9,261) 13,412 (96,357) Interest expense, net 99,509 87,890 98
Slide 32: Q3 YTD 2023 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Q3 YTD 2023 Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Nine Months Ended $US Dollars in thousands September 30, 2023 2022 Net loss $ (1,114,314) $ (343,333) Income tax (benefit) expense (29,513) (5,015) Interest expense, net 293,659 248,603 Depreciation and amortization 323,028 334,144
Slide 33: 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