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iHeartMedia: Q2 Results Show Potential Inflection Point Reached
Seeking Alpha· 2025-08-13 08:20
In late May we discussed iHeartMedia's (NASDAQ: IHRT ) Q1 results and thought there was evidence that a turnaround was occurring. While Q2 results saw the stock get whipped around in afterhours trading (up nearly 25% at theFollow us on Twitter here: @theinvestar Previously a Trader/Portfolio Manager for a Treasury Office managing anywhere from $10-20 billion (treasury assets, retirement benefits, endowment related funds), currently part of a team that oversees an outside investment manager managing almost $ ...
iHeartMedia (IHRT) Reports Q2 Loss, Tops Revenue Estimates
ZACKS· 2025-08-12 00:01
iHeartMedia (IHRT) came out with a quarterly loss of $0.54 per share versus the Zacks Consensus Estimate of a loss of $0.28. This compares to a loss of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -92.86%. A quarter ago, it was expected that this radio company would post a loss of $0.47 per share when it actually produced a loss of $0.63, delivering a surprise of -34.04%.Over the last four quarters, the company has su ...
iHeartMedia(IHRT) - 2025 Q2 - Earnings Call Transcript
2025-08-11 21:30
Financial Data and Key Metrics Changes - The company generated adjusted EBITDA of $156 million, which is at the upper end of the guidance range of $140 million to $160 million and represents a 4% increase compared to the prior year [4][15] - Consolidated revenue for the quarter was up 0.5% year over year, exceeding the guidance of down low single digits; excluding political impacts, revenue increased by 1.5% [4][12] Business Line Data and Key Metrics Changes - The Digital Audio Group reported revenue of $324 million, up 13.4% year over year, and adjusted EBITDA of $108 million, up 17.1% year over year, with adjusted EBITDA margins increasing to 33.2% from 32.2% [5][18] - Podcast revenue within the Digital Audio Group grew 28.5% year over year to $134 million, significantly above the guidance of low 20s [5][19] - The Multiplatform Group's revenue was $545 million, down 5.4% year over year, with adjusted EBITDA of $96 million, down 7.6% [7][19] - The Audio and Media Services Group reported revenue of $68 million, down 3.3% year over year, while adjusted EBITDA remained flat at $24 million [20] Market Data and Key Metrics Changes - The top 50 advertisers for the total company were up 9% year over year, and the four largest advertising agency groups were up 14% year over year [14] - The largest category gainers in advertising revenue included financial services, telecom, professional services, and healthcare, while the categories that declined included restaurants, political, media publishing, and entertainment [13] Company Strategy and Development Direction - The company is focused on cost management, aiming to generate $150 million in net savings in 2025, with $40 million in savings realized in Q2 [10][16] - The company is enhancing its ad tech platform to allow broadcast radio inventory to be bought and sold like digital advertising [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate positive financial results despite a still uncertain macro environment [4][10] - The company anticipates third quarter adjusted EBITDA in the range of $180 million to $220 million, with revenue expected to be down low single digits compared to the prior year [22][23] Other Important Information - The company’s net debt was approximately $4.6 billion, with total liquidity of $527 million and a cash balance of $236 million [20] - The company plans to pay back its ABL facility in the second half of the year as free cash flow builds [21] Q&A Session Summary Question: Follow-up on guidance and growth categories - Management indicated that while they haven't provided specific category growth trends for Q3, the performance of top advertisers and advertising agency relationships serves as a leading indicator for future performance [28][29] Question: Differences in growth trends between digital streaming and podcasting - Management noted that podcasting is experiencing significant growth, but did not provide detailed granularity on audience differences [30][31] Question: Clarification on EBITDA guidance range - Management explained that the wider EBITDA range reflects uncertainty in the marketplace and revenue mix considerations [34][37] Question: Expectations for net cost savings in Q3 - Management confirmed that the expected net cost savings for Q3 would be similar to Q2 at $40 million [38] Question: Inquiry about programmatic advertising and demand-side platforms - Management stated that progress has been made in programmatic advertising, and the new Chief Business Officer will help drive these efforts [42]
iHeartMedia(IHRT) - 2025 Q2 - Earnings Call Presentation
2025-08-11 20:30
Second Quarter 2025 Investor Presentation August 11, 2025 NASDAQ: IHRT 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 which may cause the actual results, performance or achievements of iHeartMedia, Inc. and its subsidiaries (the "Company"), to be materially d ...
iHeartMedia(IHRT) - 2025 Q2 - Quarterly Report
2025-08-11 20:07
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Commission File Number 001-38987 IHEARTMEDIA, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 20880 Stone Oak Parkway San Antonio, Texas 78258 (Address of principal executive offices) (Zip Code) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025 ☐ TRANSITION REPORT PURSU ...
iHeartMedia(IHRT) - 2025 Q2 - Quarterly Results
2025-08-11 20:04
Exhibit 99.1 IHEARTMEDIA, INC. REPORTS RESULTS FOR 2025 SECOND QUARTER Guidance Unless otherwise noted, all results are based on year over year comparisons. 1 Total available liquidity is defined as cash and cash equivalents plus available borrowings under our ABL Facility. We use total available liquidity to evaluate our capacity to access cash to meet obligations and fund operations. 2 New York, NY, August 11, 2025 – iHeartMedia, Inc. (Nasdaq: IHRT) today reported financial results for the quarter ended J ...
iHeartMedia: Is A Turnaround Occurring?
Seeking Alpha· 2025-05-28 13:19
Group 1 - The media industry, particularly traditional broadcast radio companies, has faced significant challenges in recent years, exacerbated by the Covid-19 pandemic [1] - Prior to the pandemic, some companies in this sector appeared to be recovering from previous financial difficulties and were managing their debt loads effectively [1] Group 2 - The article does not provide specific financial data or performance metrics related to the companies discussed [2][3]
IHeartMedia (IHRT) Reports Q1 Loss, Tops Revenue Estimates
ZACKS· 2025-05-12 22:30
Core Insights - iHeartMedia reported a quarterly loss of $0.63 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.47, and a significant decline from a loss of $0.12 per share a year ago, indicating a surprise of -34.04% [1] - The company generated revenues of $807.1 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 2.19% and showing a slight increase from $799.04 million in the same quarter last year [2] - iHeartMedia's stock has declined approximately 36.4% year-to-date, contrasting with the S&P 500's decline of -3.8% [3] Earnings Outlook - The earnings outlook for iHeartMedia is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.16 on revenues of $907.39 million, and for the current fiscal year at -$0.31 on revenues of $3.71 billion [7] - The company's Zacks Rank is currently 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6] Industry Context - The Broadcast Radio and Television industry, to which iHeartMedia belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]
iHeartMedia(IHRT) - 2025 Q1 - Earnings Call Transcript
2025-05-12 21:32
Financial Data and Key Metrics Changes - In Q1 2025, the company generated adjusted EBITDA of $105 million, flat compared to the prior year, and consolidated revenue increased by 1% year-over-year, exceeding guidance of a low single-digit decline [6][14] - The consolidated direct operating expenses rose by 4.4%, primarily due to higher variable content costs associated with digital growth [13] - The company reported a GAAP operating loss of $25.4 million, an improvement from a loss of $34.7 million in the prior year [14][18] Business Line Data and Key Metrics Changes - The Digital Audio Group's revenue was $277 million, up 16% year-over-year, with adjusted EBITDA of $87 million, reflecting a 27.8% increase [7][16] - Podcast revenue within the Digital Audio Group grew by 28% year-over-year to $116 million, significantly above guidance [8][17] - The Multi-Platform Group's revenue was $473 million, down 4.2% year-over-year, with adjusted EBITDA declining by 9.3% to $70 million [9][17] - The Audio and Media Services Group reported revenue of $59 million, down 14.2% year-over-year, with adjusted EBITDA of $16 million, down 33.3% [10][18] Market Data and Key Metrics Changes - iHeartMedia's share of advertising revenue in measured markets grew to 40%, indicating a strong position among national advertisers [10][11] - The company noted that the largest gains in advertising revenue came from professional services, tech and telco, beauty and fitness, and education, while declines were seen in restaurants, auto, gambling, and political categories [12][13] Company Strategy and Development Direction - The company is focused on leveraging new technologies, including programmatic and AI, to enhance operational efficiency and drive growth [5][6] - The modernization program is expected to generate $150 million in net savings in 2025, primarily through technology and AI [11][14] - The company aims to continue its leadership in podcasting while also revitalizing growth in its broadcast radio business [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the advertising marketplace, noting stable ad spend despite economic uncertainties [5][19] - The company anticipates Q2 adjusted EBITDA in the range of $140 million to $160 million, with revenue expected to decline low single digits compared to the prior year [19] - Management highlighted the importance of macroeconomic improvements for maintaining full-year guidance [19] Other Important Information - The company reported a net debt of approximately $4.6 billion and total liquidity of $569 million, with a cash balance of $168 million [18] - Free cash flow for Q1 was negative $80.7 million, consistent with the prior year, but positive free cash flow is expected in the remaining quarters of 2025 [18] Q&A Session Summary Question: Insights on the advertising market and visibility - Management noted that larger advertisers are maintaining their spending, while small and medium-sized businesses are more affected by economic news [24][25] Question: Market share and terrestrial radio industry outlook - Management emphasized that broadcast radio has more listeners than a decade ago, and the focus is on monetization as the industry transitions to digital platforms [28][29] Question: Podcasting growth drivers - Management attributed podcasting growth to having popular content and a large audience, with a diversified portfolio across categories [39][40] Question: Impact of Nielsen's updated ratings methodology - Management expressed optimism about Nielsen's efforts to capture more accurate listening data, which is crucial for advertising effectiveness [55] Question: Programmatic advertising adoption - Management indicated that while programmatic advertising is progressing, it has not yet materially impacted Premier Networks' performance [59] Question: Podcasting revenue growth sources - Management confirmed that growth in podcasting revenue comes from both increased rates and volume of impressions delivered [61]
iHeartMedia(IHRT) - 2025 Q1 - Earnings Call Transcript
2025-05-12 21:32
Financial Data and Key Metrics Changes - In Q1 2025, the company generated adjusted EBITDA of $105 million, flat compared to the prior year, and consolidated revenue increased by 1% year-over-year, exceeding guidance of a low single-digit decline [6][15][20] - The company's net debt was approximately $4.6 billion, with total liquidity of $569 million and a cash balance of $168 million, resulting in a net debt to adjusted EBITDA ratio of 6.5 times [19] Business Line Data and Key Metrics Changes - The Digital Audio Group's revenue was $277 million, up 16% year-over-year, with adjusted EBITDA of $87 million, a 27.8% increase, and adjusted EBITDA margins improved to 31.4% from 28.5% [7][18] - The Multi-Platform Group's revenue was $473 million, down 4.2% year-over-year, with adjusted EBITDA of $70 million, down 9.3% [9][18] - The Audio and Media Services Group's revenue was $59 million, down 14.2% year-over-year, with adjusted EBITDA of $16 million, down 33.3% [19] Market Data and Key Metrics Changes - iHeartMedia's share of advertising revenue in measured markets grew to 40%, indicating a strong position among national advertisers [10][11] - The company reported that the largest gains in advertising revenue came from professional services, tech and telco, beauty and fitness, and education, while declines were seen in restaurants, auto, gambling, and political categories [13] Company Strategy and Development Direction - The company remains committed to leveraging new technologies, including programmatic and AI, to enhance operational efficiency and drive growth [5][11] - The modernization program is on track to generate $150 million in net savings in 2025, primarily through technology and AI [11][15] Management's Comments on Operating Environment and Future Outlook - Management noted generally stable ad spend but emphasized the need to monitor the advertising marketplace closely due to economic uncertainty [5] - The company expects Q2 2025 adjusted EBITDA to be in the range of $140 million to $160 million, with consolidated revenue anticipated to decline low single digits compared to the prior year [20] Other Important Information - Podcast revenue grew by 28% year-over-year, significantly exceeding guidance, and the company is experiencing a flywheel effect in podcast publishing [8][18] - The company has a large sales force of approximately 1,000 people selling podcasts and other products, contributing to its competitive advantage [44] Q&A Session Summary Question: Insights on the ad market and visibility - Management indicated that larger advertisers are maintaining their spending, while small and medium-sized businesses are more affected by economic news [26][30] Question: Market share and terrestrial radio industry - Management expressed confidence in increasing market share beyond 40% due to a strong listener base and ongoing transformation in monetization strategies [30][34] Question: Podcasting growth and competition with video - Management highlighted the strength of their podcast offerings and audience, asserting that podcasting remains distinct from video content [40][42] Question: Cost savings and future opportunities - The $27 million in cost savings for Q1 was not a run rate but an actual impact, with expectations of continued savings throughout the year [52] Question: Nielsen's updated ratings methodology - Management welcomed Nielsen's efforts to capture more accurate listening data, which is crucial for advertising effectiveness [56] Question: Programmatic advertising adoption - Management noted that while programmatic advertising is progressing, it has not yet materially impacted Premier Networks' revenue [60]