Core Points - iHeartMedia has initiated its annual transition to holiday music, with over 95 stations nationwide broadcasting festive music 24/7 [1] - The iHeartRadio Holiday Special is returning this year, hosted by Mario Lopez, featuring interviews with various artists [1] Company Summary - iHeartMedia is expanding its holiday music offerings by flipping more than 95 stations to play a mix of contemporary holiday hits and classic Christmas songs [1] - The company continues to engage listeners with special programming, such as the iHeartRadio Holiday Special, enhancing its brand presence during the holiday season [1]

Group 1: Coty vs. Kering and Gucci - Coty has filed a lawsuit against Kering and Gucci over a beauty business licensing agreement set to expire in 2028, with Kering planning to transfer Gucci's beauty business to L'Oréal after the contract ends [1] - The lawsuit highlights a broader struggle among luxury brands for control and profit distribution in the beauty sector, with Gucci's beauty business being a critical asset for Coty [1] - Kering's decision to partner with L'Oréal may be aimed at leveraging L'Oréal's stronger beauty operations to enhance brand positioning and market influence [1] Group 2: TikTok and iHeartMedia Collaboration - TikTok and iHeartMedia have announced a multi-platform partnership to launch a TikTok podcast network featuring 25 new shows hosted by TikTok creators [2] - This collaboration signifies TikTok's strategic move into the audio space, aiming to extend its content creation capabilities and enhance user engagement through long-form audio content [2] - The partnership will involve the establishment of new co-branded podcast studios in major U.S. cities, including Los Angeles, New York, and Atlanta [2] Group 3: Burger King China Ownership Change - CPE Yuanfeng has acquired a controlling stake in Burger King China, injecting $350 million to support restaurant expansion, marketing, menu innovation, and operational improvements [3] - Following the transaction, CPE Yuanfeng will hold approximately 83% of Burger King China's equity, while the international group will retain about 17% [3] - This partnership aims to help Burger King catch up with competitors like McDonald's and KFC in the Chinese market by leveraging local investment and resources [3] Group 4: Douyin E-commerce Pricing Regulations - Douyin has clarified that rumors regarding penalties for selling Moutai below market prices are false, emphasizing a campaign against misleading low-price promotions [4] - The platform's initiative to combat false advertising in high-value goods like alcohol aims to purify the e-commerce ecosystem [4] - Balancing low-price competition with brand integrity remains a challenge for all e-commerce platforms moving forward [4]

Group 1 - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It mentions that users with ad-blockers may face restrictions when trying to access the content [1]

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Core Insights - iHeartMedia reported revenue of $997.01 million for the quarter ended September 2025, reflecting a year-over-year decline of 1.1% but exceeding the Zacks Consensus Estimate by 1.65% [1] - The company's EPS for the quarter was $0.63, a significant improvement from -$0.16 in the same quarter last year, although it did not meet the consensus EPS estimate of $0 [1] - iHeartMedia's stock has seen a return of +78.8% over the past month, significantly outperforming the Zacks S&P 500 composite's +0.3% change, but currently holds a Zacks Rank 4 (Sell) indicating potential underperformance in the near term [3] Revenue Breakdown - Digital Audio Group revenue was reported at $341.69 million, surpassing the average estimate of $329.37 million from two analysts [4] - Audio and Media Services revenue reached $66.61 million, exceeding the average estimate of $64.67 million [4] - Multiplatform Group revenue totaled $591.21 million, slightly above the estimated $589.35 million [4] - Other revenue within the Multiplatform Group was $4.41 million, below the average estimate of $5.1 million [4] - Networks revenue in the Multiplatform Group was $114.27 million, slightly below the average estimate of $115.31 million [4] - Sponsorship and Events revenue in the Multiplatform Group was $45.5 million, falling short of the average estimate of $50.56 million [4] - Broadcast Radio revenue was reported at $427.02 million, exceeding the average estimate of $418.39 million [4]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated an EBITDA of $205 million, slightly above the midpoint of the guidance range of $180-$220 million and flat compared to the prior year [4][15] - Consolidated revenue for the quarter was down 1.1% year-over-year, at the high end of the guidance of down low single digits [12][20] - Excluding political impacts, consolidated revenue was up 2.8% [12][20] - The company reported a GAAP operating loss of $116 million, including a $209 million impairment charge related to FCC licenses [15] Business Line Data and Key Metrics Changes - The Digital Audio Group generated revenue of $342 million, up 13.5% year-over-year, and adjusted EBITDA of $130 million, up 30.3% [4][16] - Podcast revenue within the Digital Audio Group was $140 million, growing 22.5% year-over-year [17] - Non-podcast digital revenue grew 8% year-over-year to $202 million [17] - The Multi-Platform Group's revenue was $591 million, down 4.6% year-over-year, with adjusted EBITDA of $119 million, down 8.3% [6][17] - The Audio and Media Services Group revenue was $67 million, down 26% year-over-year [18] Market Data and Key Metrics Changes - The largest advertising category gainers were healthcare, telecom, professional services, and retail, while political, financial services, food and beverage, and entertainment saw declines [12][13] - The company has diversified advertising revenue, with no category exceeding 5% of total advertising revenue [12] Company Strategy and Development Direction - The company aims to achieve full-year adjusted EBITDA margins in the mid-30s and is focused on maximizing operational efficiency through technology and cost management [5][10] - A new partnership with TikTok was announced, which will integrate TikTok creators into iHeart's ecosystem, enhancing monetization opportunities [6][22] - The company is investing in its proprietary audience database to improve targeting and measurement capabilities [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the advertising environment, noting positive discussions with advertisers despite potential uncertainties from a government shutdown [10][30] - The company expects to generate meaningful free cash flow in Q4 and anticipates a strong revenue cycle for political advertising in the upcoming election year [19][27] Other Important Information - The company is on track to generate $150 million in net savings for 2025, with an additional $50 million in savings expected to begin in 2026 [9][15] - The net debt at the end of the quarter was approximately $4.7 billion, with total liquidity of $510 million [20] Q&A Session Summary Question: Free cash flow and debt repayment strategy - Management acknowledged the negative free cash flow in Q3 but expects meaningful cash flow in Q4, with plans to repay the ABL facility [24][25] Question: Multi-Platform Group revenue trends - Management confirmed that Q3 revenue for the Multi-Platform Group met expectations and expressed confidence in future growth [26][27] Question: Programmatic initiatives and revenue impact - Management stated that agreements with major DSPs are in place, and programmatic initiatives are expected to grow similarly to podcasting revenue [33][34] Question: Podcasting growth sustainability - Management indicated that podcasting revenue growth remains strong, with local advertising contributing significantly [51][54] Question: Competitive advertising environment - Management noted that radio advertising is experiencing a renaissance, with studies showing its effectiveness in campaigns [59][60] Question: Sponsorship and events revenue outlook - Management clarified that the decline in sponsorship revenue is due to minor issues and expects stability moving forward [75][76]

Third Quarter 2025 Investor Presentation 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 different from any future results, performance or achievements expressed or im ...

Revenue Performance - Consolidated revenue for Q3 2025 was $997.0 million, a decrease of $11.1 million, or 1.1%, compared to $1,008.1 million in Q3 2024[111] - Multiplatform Group revenue decreased by $28.3 million, or 4.6%, with Segment Adjusted EBITDA down by $10.7 million, or 8.3%[111] - Digital Audio Group revenue increased by $40.7 million, or 13.5%, and Segment Adjusted EBITDA rose by $30.3 million, or 30.3%[111] - Audio & Media Services Group revenue decreased by $23.4 million, or 26.0%, with Segment Adjusted EBITDA down by $21.8 million, or 49.1%[111] - Consolidated revenue decreased by $11.1 million, or 1.1%, to $997.0 million for the three months ended September 30, 2025, compared to $1,008.1 million in the same period of 2024[113] - Digital Audio Group revenue increased by $40.7 million, or 13.5%, driven by higher demand for digital and podcast advertising[113] - Consolidated revenue increased by $1.5 million, or 0.1%, to $2,737.8 million for the nine months ended September 30, 2025, compared to the same period of 2024[114] - Digital Audio Group revenue increased by $117.2 million, or 14.2%, during the nine months ended September 30, 2025, driven by increased demand for digital advertising[114] - Revenue from the Multiplatform Group decreased by $28.3 million, or 4.6%, year-over-year for the three months ended September 30, 2025, primarily due to lower political revenues and broadcast advertising[130] Operating Loss and Net Loss - The operating loss for Q3 2025 was $116.3 million, a change of $193.0 million from an operating income of $76.7 million in Q3 2024, primarily due to non-cash impairment charges of $208.5 million related to FCC licenses[111] - Net loss increased to $65.8 million, up $24.4 million from $41.3 million in Q3 2024[111] - Net loss attributable to the Company increased by $25.0 million to $66.3 million for the three months ended September 30, 2025, primarily due to non-cash impairment charges[127] - The company reported a net loss of $65.8 million for the three months ended September 30, 2025, compared to a net loss of $41.3 million in the prior year[144] Cash Flow and Expenses - Cash flows used for operating activities were $9.5 million, a change from cash flows provided by operating activities of $102.8 million in Q3 2024[111] - Free cash flow was $(32.8) million, a decrease from $73.3 million in Q3 2024[111] - Consolidated direct operating expenses decreased by $10.6 million, or 2.6%, during the three months ended September 30, 2025, primarily due to lower employee compensation costs[115] - Consolidated SG&A expenses decreased by $4.4 million, or 1.1%, during the three months ended September 30, 2025, driven by cost savings initiatives[117] - Free cash flow for the three months ended September 30, 2025, was $(32.8) million, compared to $73.3 million in the prior year[146] - For the nine months ended September 30, 2025, cash used for operating activities was $63.7 million, compared to cash provided of $70.2 million in 2024, indicating a significant decline[151] - Cash used for investing activities was $57.9 million in the nine months ended September 30, 2025, primarily due to $63.0 million in capital expenditures[152] - Cash provided by financing activities totaled $53.9 million during the nine months ended September 30, 2025, mainly from a $100.0 million borrowing under the ABL Facility[154] Debt and Liquidity - As of September 30, 2025, total available liquidity was $509.8 million, consisting of $192.2 million in cash and cash equivalents and $317.5 million available for borrowing[156] - Total debt as of September 30, 2025, was $5,120.3 million, with net debt amounting to $4,673.8 million after accounting for cash and cash equivalents[161] - The company anticipates cash payments to service its debt of approximately $102.1 million for the remainder of 2025, reflecting increased interest rates[158] - The company acknowledges challenges from market uncertainty but believes it has sufficient liquidity to fund operations for at least the next twelve months[159] Impairment and Future Projections - Non-cash impairment charges of $208.5 million were recorded during the three months ended September 30, 2025, primarily to reduce the carrying values of indefinite-lived FCC licenses[120] - The company recorded a $208.5 million impairment of indefinite-lived intangible assets as of July 1, 2025, resulting in a carrying value of $601.4 million for FCC licenses[176][180] - Revenue growth assumptions include 2.0% over-the-air revenue growth and 3.0% digital revenue growth beyond the initial five-year period, with a terminal period growth rate of 1.0%[178] - The estimated fair value of the company's FCC licenses could decrease by $77.1 million due to a 100 bps decline in revenue growth rate assumptions[179] - Future cash flows are based on detailed multi-year forecasts reflecting the current advertising outlook, with projections extending beyond 2029[184] Market Risks and Strategic Opportunities - The company is exposed to market risks including fluctuations in advertising revenue and competition from alternative media platforms[188] - The company expects to pursue strategic opportunities such as acquisitions or disposals of certain businesses in the future[160] - The company acknowledges potential risks related to economic conditions, advertising expenditures, and regulatory requirements that could impact future performance[186]

Financial Performance - Q3 2025 revenue was $997 million, down 1.1% year-over-year; excluding political revenue, revenue increased by 2.8%[4] - GAAP operating loss was $116 million, compared to a GAAP operating income of $77 million in Q3 2024, including non-cash impairment charges of $209 million related to FCC licenses[4] - Consolidated Adjusted EBITDA was $205 million, flat compared to Q3 2024, with a slight increase from $204.6 million[10] - Multiplatform Group revenue decreased by 5% to $591 million, with an 8% decline in Adjusted EBITDA to $119 million[4] - The company reported a net loss of $65.8 million for the three months ended September 30, 2025, compared to a net loss of $41.3 million for the same period in 2024, indicating a deterioration in performance[56] - Operating loss for the three months ended September 30, 2025, was $(116.3) million, compared to an operating income of $76.7 million in the same period of 2024[39] - For the nine months ended September 30, 2025, total revenue was $2,737.8 million, showing a slight increase of 0.1% from $2,736.3 million in 2024[39] - Operating loss for the nine months ended September 30, 2025, was $106,341,000, an improvement from an operating loss of $867,655,000 in the same period of 2024[62] - The company reported impairment charges of $208.5 million for the three months ended September 30, 2025[39] - The company reported impairment charges of $213,908,000 for the nine months ended September 30, 2025, significantly lower than $922,144,000 in 2024[62] Digital Audio Group - Digital Audio Group revenue increased by 14% to $342 million, with podcast revenue up 22% to $140 million[4] - The Digital Audio Group's Adjusted EBITDA margin improved to 38.1%, up from 33.2% year-over-year[19] - The Digital Audio Group, which includes podcasting, reported a revenue increase of 22.5% for the three months ended September 30, 2025, reaching $139.7 million[28] - The Digital Audio Group revenue increased by 13.5% year-over-year for the three months ended September 30, 2025, reaching $341.7 million[59] Cash Flow and Liquidity - Cash used for operating activities was $10 million, with free cash flow at ($33) million[4] - As of September 30, 2025, the company had a cash balance of $192 million and total available liquidity of $510 million[4] - The cash balance was $192.2 million, with total available liquidity of $509.8 million, reflecting $100.0 million of outstanding borrowings under the ABL facility[27] - Free cash flow for the three months ended September 30, 2025, was negative at $(32.8) million, compared to positive free cash flow of $73.3 million in the same period of 2024[57] Debt and Financial Health - As of September 30, 2025, total debt of $5,120.3 million and net debt of $4,673.8 million[27] - Net debt as of September 30, 2025, was $4,673.8 million, calculated as total debt of $5,120.3 million minus cash and cash equivalents of $192.2 million[60] - The company’s stockholders' deficit increased to $(1,788.7) million as of September 30, 2025, from $(1,371.8) million as of December 31, 2024, indicating worsening financial health[40] Future Outlook - Q4 2025 consolidated revenue is expected to decline in low-single digits, while revenue excluding political impact is expected to increase in mid-single digits[4] - The company aims to achieve $150 million in net savings for 2025, with an additional $50 million in annual savings expected to begin in 2026[5] - The company provided guidance for consolidated revenue and Adjusted EBITDA for the quarter ending December 31, 2025, with further details expected in the earnings call on November 10, 2025[52] Operating Expenses - The company’s total operating expenses for the three months ended September 30, 2025, were $792,256,000, down from $803,548,000 in the same period of 2024[61] - The company incurred restructuring expenses of $54,763,000 for the nine months ended September 30, 2025, compared to $67,928,000 in 2024, indicating a reduction in restructuring costs[62]

Core Insights - iHeartMedia and TikTok have formed a groundbreaking multiplatform partnership to integrate TikTok creators into iHeart's ecosystem, launching the TikTok Podcast Network with up to 25 new podcasts [1][2][3] - The partnership aims to enhance creator engagement and expand their storytelling capabilities across various platforms, combining TikTok's cultural energy with iHeartMedia's extensive reach [2][3] Partnership Details - The TikTok Podcast Network will feature podcasts hosted by TikTok creators, supported by new co-branded podcast studios in Los Angeles, New York, and Atlanta, equipped with advanced audio and video infrastructure [3] - TikTok Radio will be launched, pairing TikTok creators with experienced iHeartRadio personalities, providing a unique audio experience that mirrors the TikTok scrolling experience [3] - iHeartMedia and TikTok will collaborate on live events, offering creators access to major events like the iHeartRadio Music Festival and Jingle Ball, enhancing brand activation opportunities [3][4] Marketing and Sponsorship - The partnership will leverage both companies' marketing capabilities to drive sponsorships and create new business opportunities for creators and their shows [5] - Mass-reach marketing strategies will be implemented across both platforms to maximize audience engagement and sponsorship potential [5]