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]

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]

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]

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 [5][11][13] - The consolidated direct operating expenses rose by 4.4%, primarily due to higher variable content costs associated with digital growth [12] - The company reported a GAAP operating loss of $25.4 million, an improvement from a loss of $34.7 million in the prior year [13][17] 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 [6][14] - Podcast revenue within the Digital Audio Group grew by 28% year-over-year, significantly above guidance [6][15] - The Multi-Platform Group's revenue was $473 million, down 4.2% year-over-year, with adjusted EBITDA of $70 million, down 9.3% [7][16] - The Audio and Media Services Group's revenue decreased by 14.2% year-over-year to $59 million, with adjusted EBITDA down 33.3% [9][17] 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 [8][9] - 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 [11][12] Company Strategy and Development Direction - The company is focused on leveraging new technologies, including programmatic and AI, to enhance operational efficiency and drive growth [4][5] - A modernization program is expected to generate $150 million in net savings in 2025, primarily through technology and AI [9][13] - The company aims to reignite growth in its broadcast radio business while maintaining leadership in podcasting [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the advertising marketplace, noting stable ad spend despite economic uncertainties [4][11] - The company anticipates Q2 2025 adjusted EBITDA in the range of $140 million to $160 million, with revenue expected to decline low single digits compared to the prior year [18] - Future guidance remains contingent on macroeconomic conditions improving in the latter half of the year [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 [17] - 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 [17] 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 [22][23] Question: Market share in terrestrial radio - Management highlighted that broadcast radio has more listeners than a decade ago, and the focus is on monetization through digital platforms [27][28] Question: Podcasting growth drivers - The company emphasized its strong podcast portfolio and audience, which continues to grow, contributing to revenue acceleration [35][38] Question: Cost savings and future opportunities - The $27 million in cost savings for Q1 was actual impact, with expectations of continued savings throughout the year [50][51] Question: Nielsen's updated ratings methodology - Management expressed optimism about Nielsen's efforts to capture more accurate listening data, which is crucial for advertising effectiveness [53][54] Question: Programmatic advertising adoption - Management indicated that while programmatic advertising is progressing, it has not yet materially impacted Premier Networks' performance [58][59]

Q1 2025 Consolidated Results - Q1 Revenue reached $807 million, a 10% increase year-over-year; excluding political revenue, the increase was 18%[10] - Consolidated Adjusted EBITDA remained flat at $105 million compared to Q1 2024[10] - The company's cash balance and total available liquidity stood at $168 million and $559 million, respectively, as of March 31, 2025[10] - Free Cash Flow was $(81) million[10] Digital Audio Group Results - Digital Audio Group Revenue increased by 16% to $277 million[10] - Podcast Revenue grew by 28% to $116 million[10] - Digital Revenue excluding Podcast increased by 9% to $161 million[10] - Digital Audio Group Adjusted EBITDA margin was 314%[10] Multiplatform Group Results - Multiplatform Group Revenue decreased by 4% to $473 million; excluding political revenue, the decrease was 3%[10] - Multiplatform Group Adjusted EBITDA margin was 148%[10] Modernization Program - The company is on track with its modernization program, expecting $150 million in net savings in 2025, primarily driven by technology and AI[28]

Part I – Financial Information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The Q1 2025 financial statements reflect a slight revenue increase, a significant net loss, decreased assets, and a widened stockholders' deficit [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to **$5.27 billion**, total liabilities slightly decreased, and the total stockholders' deficit widened to **$1.65 billion** Consolidated Balance Sheet Summary (Unaudited) | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,159,561 | $1,361,842 | | **Total Assets** | **$5,268,093** | **$5,571,696** | | **Total Current Liabilities** | $729,832 | $870,280 | | **Long-term debt** | $5,032,066 | $5,048,968 | | **Total Liabilities** | $6,914,216 | $6,943,476 | | **Total Stockholders' Deficit** | **$(1,646,123)** | **$(1,371,780)** | [Consolidated Statements of Comprehensive Loss](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) Q1 2025 saw a slight revenue increase and improved operating loss, but a significant **$280.9 million** net loss, primarily due to higher income tax expense and an investment loss Consolidated Statements of Comprehensive Loss Summary (Unaudited) | (In thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenue** | $807,101 | $799,038 | | **Operating loss** | $(25,434) | $(34,708) | | **Gain (loss) on investments, net** | $(18,594) | $91,994 | | **Income tax benefit (expense)** | $(135,359) | $20,662 | | **Net loss** | **$(280,883)** | **$(18,108)** | | **Net loss attributable to the Company** | $(281,224) | $(18,508) | | **Net loss per common share - Basic & Diluted** | **$(1.84)** | **$(0.12)** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, cash used for operating activities slightly increased, investing activities shifted from providing to using cash, and overall cash and cash equivalents decreased by **$91.9 million** Consolidated Statements of Cash Flows Summary (Unaudited) | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Cash used for operating activities** | $(60,944) | $(59,277) | | **Cash provided by (used for) investing activities** | $(20,067) | $78,015 | | **Cash used for financing activities** | $(11,038) | $(3,548) | | **Net (decrease) increase in cash** | $(91,866) | $15,021 | | **Cash, cash equivalents and restricted cash at end of period** | $167,714 | $361,403 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail segment performance, debt structure, and liquidity, highlighting three reportable segments and **$559.1 million** in total available liquidity as of March 31, 2025 - The company operates three reportable segments: Multiplatform Group (Broadcast radio, Networks, Sponsorships), Digital Audio Group (Digital businesses, Podcasting), and Audio & Media Services Group (Katz Media, RCS)[24](index=24&type=chunk) - As of March 31, 2025, the company had total available liquidity of **$559.1 million**, comprising **$167.7 million** in cash and **$391.4 million** in borrowing availability under its ABL Facility[20](index=20&type=chunk) Revenue by Segment (Q1 2025 vs Q1 2024) | (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Multiplatform Group** | $472,978 | $493,463 | | **Digital Audio Group** | $277,287 | $238,968 | | **Audio & Media Services Group** | $59,323 | $69,168 | | **Total Revenue** | **$807,101** | **$799,038** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights **1.0%** consolidated revenue growth driven by Digital Audio, offset by Multiplatform decline, improved operating loss, but a significantly widened net loss, with **$150 million** in anticipated 2025 savings - Modernization initiatives implemented in 2024 are anticipated to generate approximately **$150 million** of net savings for the full year 2025[83](index=83&type=chunk) Key Financial Metrics (Q1 2025 vs Q1 2024) | (In thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $807,101 | $799,038 | 1.0% | | **Operating loss** | $(25,434) | $(34,708) | (26.7)% | | **Net loss** | $(280,883) | $(18,108) | 1,451.2% | | **Adjusted EBITDA** | $104,588 | $104,617 | — % | [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q1 2025 consolidated revenue grew **1.0%** due to Digital Audio's **16.0%** increase, offset by Multiplatform and Audio & Media Services declines, while net loss significantly widened due to investment and tax swings Revenue by Stream (Q1 2025 vs Q1 2024) | (In thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Multiplatform Group** | $472,978 | $493,463 | (4.2)% | | Broadcast Radio | $340,736 | $359,338 | (5.2)% | | **Digital Audio Group** | $277,287 | $238,968 | 16.0% | | Podcast | $116,036 | $90,624 | 28.0% | | **Audio & Media Services Group** | $59,323 | $69,168 | (14.2)% | | **Total Revenue** | **$807,101** | **$799,038** | **1.0%** | - The increase in net loss to **$281.2 million** was primarily due to a **$101.4 million** gain on the sale of the company's investment in BMI in Q1 2024 and an increase in income tax expense in Q1 2025[93](index=93&type=chunk)[95](index=95&type=chunk) [Segment Results](index=25&type=section&id=Segment%20Results) Q1 2025 Digital Audio Group revenue grew **16.0%** with **27.8%** EBITDA increase, while Multiplatform and Audio & Media Services Groups experienced revenue and EBITDA declines Segment Performance (Q1 2025 vs Q1 2024) | (In thousands) | Revenue | Segment Adjusted EBITDA | | :--- | :--- | :--- | | **Multiplatform Group** | | | | Q1 2025 | $472,978 | $70,007 | | Q1 2024 | $493,463 | $77,182 | | % Change | (4.2)% | (9.3)% | | **Digital Audio Group** | | | | Q1 2025 | $277,287 | $87,083 | | Q1 2024 | $238,968 | $68,127 | | % Change | 16.0% | 27.8% | | **Audio & Media Services Group** | | | | Q1 2025 | $59,323 | $15,798 | | Q1 2024 | $69,168 | $23,695 | | % Change | (14.2)% | (33.3)% | [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, total available liquidity was **$559.1 million**, deemed sufficient for the next twelve months, with anticipated **$333.7 million** in remaining 2025 debt service and increased net debt - Total available liquidity as of March 31, 2025 was **$559.1 million**, consisting of **$167.7 million** in cash and **$391.4 million** of borrowing base availability under the ABL Facility[116](index=116&type=chunk) - Anticipated cash payments to service debt for the remainder of 2025 are approximately **$333.7 million**[118](index=118&type=chunk) Net Debt Calculation | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Debt | $5,054,577 | $5,071,469 | | Less: Debt Premium | $278,106 | $289,752 | | Less: Cash and cash equivalents | $167,714 | $259,580 | | **Net Debt** | **$4,608,757** | **$4,522,137** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates, foreign currency, and inflation, with **45%** of long-term debt at variable rates, where a **100 basis point** change impacts quarterly interest expense by **$5.4 million** - As of March 31, 2025, approximately **45%** of the company's long-term debt bore interest at floating rates[129](index=129&type=chunk) - A **100 basis point** change in floating interest rates is estimated to change quarterly interest expense by **$5.4 million**[129](index=129&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[138](index=138&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[139](index=139&type=chunk) Part II – Other Information [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various ordinary course legal proceedings, accruing for probable and estimable losses, which could materially affect future results - The company is involved in a variety of legal proceedings in the ordinary course of business and has accrued for probable and estimable losses[142](index=142&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) No material changes in risk factors were reported since the last Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in risk factors were reported since the last Annual Report on Form 10-K[143](index=143&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not issue unregistered equity securities but repurchased **292,544** Class A common shares at **$2.20** per share from employees for tax withholding obligations Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 1 - January 31 | 3,040 | $2.21 | | February 1 - February 28 | 268,829 | $2.20 | | March 1 - March 31 | 20,675 | $2.20 | | **Total** | **292,544** | **$2.20** | - The repurchased shares were tendered by employees to satisfy tax withholding obligations in connection with the vesting of restricted stock[145](index=145&type=chunk)

Financial Data and Key Metrics Changes - In Q4 2024, the company generated adjusted EBITDA of $246 million, an increase of 18.2% compared to the prior year [9][26] - Consolidated revenues for the quarter were up 4.8% year-over-year, but down 1.8% when excluding political impacts [10][24] - The company reported a GAAP operating income of $104.5 million, compared to $79.8 million in the prior year [26] - The net debt position at quarter end was approximately $4.52 billion, the lowest in the company's history, with total liquidity of $686 million [30][31] Business Line Data and Key Metrics Changes - The Digital Audio Group generated revenues of $339 million, up 6.7% year-over-year, contributing approximately 30% of total revenue [10][27] - The Multiplatform Group's revenues were $684 million, flat compared to the prior year, with adjusted EBITDA of $150 million, up 5.9% [15][29] - The Audio and Media Services Group saw revenues of $98 million, up 44.7% year-over-year, with adjusted EBITDA increasing 136% from $21 million in the prior year [19][29] Market Data and Key Metrics Changes - The company noted that broadcast radio has more listeners today than it did 20 years ago, maintaining strong audience reach compared to other media [17] - The Digital Audio Group's podcast revenues grew 5.7% year-over-year, with expectations for high teens growth in Q1 2025 [11][12] Company Strategy and Development Direction - The company completed a comprehensive exchange transaction that extended debt maturities by three years and reduced overall debt levels, enhancing financial flexibility [7][31] - The company is focused on modernizing operations, flattening the organization, and implementing cost-saving initiatives expected to generate $150 million in net savings [8][24] - The company aims to integrate broadcast radio inventory into programmatic platforms to align with digital buying behavior [21][22] Management Comments on Operating Environment and Future Outlook - Management expressed optimism for the year ahead despite economic uncertainties, including tariffs, inflation, and consumer confidence declines [33][34] - The company expects Q1 2025 adjusted EBITDA in the range of $100 million to $110 million, with revenues anticipated to be down low single digits compared to the prior year [36][38] - Full year 2025 guidance includes flat revenues compared to 2024 and adjusted EBITDA of approximately $770 million [38][39] Other Important Information - The company recorded $33.5 million in restructuring expenses in Q4, impacting free cash flow [32] - The company launched a redesigned iHeartRadio app, receiving positive feedback from listeners [14] Q&A Session Summary Question: How is the company thinking about monetizing broadcast listening going forward? - Management emphasized the importance of programmatic and automated buying to fit broadcast radio inventory into digital-centric buying systems [44][45][46] Question: Can you address the video podcasting opportunity? - Management noted that while there is interest in video podcasting, the majority of podcast users prefer audio, and the focus remains on delivering what consumers want [54][56][57] Question: What are the expected drivers of growth in the podcasting business this year? - Growth drivers include expanding product offerings, audience, value, and pricing, with continued demand for podcasting [82][83] Question: Why was political advertising revenue lower than expected? - Management indicated that political campaigns are becoming more data-driven, and the company is preparing to enhance its offerings for future political cycles [85][86]

Financial Performance - Q4 2024 revenue reached $1,118 million, a 4.8% increase, but excluding political revenue, it decreased by 1.8%[10] - Consolidated Adjusted EBITDA for Q4 2024 was $246 million, up 18.2% from $208 million in Q4 2023[10] - Full year 2025 consolidated revenue is expected to be approximately flat, while Adjusted EBITDA is projected to be around $770 million[10] - Free cash flow was negative $(24) million, but excluding Debt Exchange Transaction impacts, it was $111 million[10] - Full year 2024 revenue was $3,854.5 million, a 2.8% increase from $3,751.0 million in 2023[48] - Full year 2024 Adjusted EBITDA was $705.6 million, a 1.3% increase from $696.6 million in 2023[48] Segment Performance - Digital Audio Group revenue increased by 7% to $339 million, with podcast revenue up 6% to $140 million and digital revenue excluding podcast up 7% to $199 million[10] - Multiplatform Group revenue remained flat at $684 million, but excluding political revenue, it decreased by 5%[10] - Audio & Media Services Group revenue increased significantly by 44.7% to $97.8 million[12] Debt and Liquidity - The company completed a debt exchange transaction, exchanging approximately $4.8 billion of existing debt and extending maturities by three years[10] - The debt exchange resulted in the lowest net debt in the company's history[10] - Cash balance and total available liquidity were $260 million and $686 million, respectively, as of December 31, 2024[10]

Core Insights - iHeartMedia reported quarterly earnings of $0.76 per share, significantly exceeding the Zacks Consensus Estimate of $0.39 per share, and showing a substantial increase from $0.09 per share a year ago, resulting in an earnings surprise of 94.87% [1] - The company generated revenues of $1.12 billion for the quarter ended December 2024, which was 4.15% below the Zacks Consensus Estimate, but an increase from $1.07 billion year-over-year [2] - iHeartMedia's stock has increased by approximately 14.7% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] Earnings Outlook - The future performance of iHeartMedia's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook, including current consensus earnings expectations for upcoming quarters [4][6] - The current consensus EPS estimate for the next quarter is -$0.37 on revenues of $804.35 million, and for the current fiscal year, it is -$0.11 on revenues of $3.83 billion [7] Industry Context - The Broadcast Radio and Television industry, to which iHeartMedia belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The company generated adjusted EBITDA of $246 million in Q4 2024, an increase of 18.2% compared to the prior year [6][20] - Consolidated revenues for the quarter were up 4.8% year over year, but down 1.8% when excluding political impacts [7][19] - The company reported a GAAP operating income of $104.5 million, compared to $79.8 million in the prior year quarter [20] - Free cash flow was negative $24 million due to debt transaction expenses and modernization costs, but would have been $111 million when adjusted [25] Business Line Data and Key Metrics Changes - The Digital Audio Group generated revenues of $339 million, up 6.7% year over year, with adjusted EBITDA of $119 million, up 2.1% [7][21] - Podcast revenues within the Digital Audio Group grew 6% year over year, totaling $140 million [21] - The Multiplatform Group's revenues were flat at $684 million, with adjusted EBITDA of $150 million, up 5.9% [13][23] - The Audio and Media Services Group saw revenues of $98 million, up 44.7% year over year, with adjusted EBITDA of $49 million, up 136% [15][23] Market Data and Key Metrics Changes - The company noted a slowdown in non-political advertising revenue just before the presidential election, which did not rebound as expected [19] - The Los Angeles market was disrupted by wildfires, impacting revenue, but is expected to normalize [46] Company Strategy and Development Direction - The company is focused on modernizing its operations, flattening the organization, and eliminating redundancies to accelerate earnings growth [5][6] - A comprehensive exchange transaction was completed to extend debt maturities and reduce overall debt levels, enhancing financial flexibility [5][24] - The company aims to integrate broadcast radio inventory into programmatic platforms to unlock new revenue opportunities [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the year ahead despite economic uncertainties such as tariffs, inflation, and consumer confidence declines [26][48] - The company expects Q1 2025 adjusted EBITDA to be in the range of $100 million to $110 million, with revenues expected to decline low single digits compared to the prior year [27][28] - Management remains confident in the strength of their assets and the potential for recovery in advertising spending [49][50] Other Important Information - The company launched a redesigned iHeartRadio app, receiving positive feedback from listeners [12] - The company is the number one podcast publisher in the U.S. and is expanding its leadership position globally [10][11] Q&A Session Summary Question: How is the company thinking about monetizing broadcast listening going forward? - Management emphasized the importance of programmatic advertising and automated buying to fit broadcast radio inventory into modern buying systems [31][34] Question: Can you address the video podcasting opportunity? - Management noted that while there is interest in video podcasting, the majority of podcast users prefer audio, and the focus remains on consumer preferences [39][40] Question: What were the drivers of January's advertising growth? - Management indicated that January's growth was a result of a delayed response from advertisers following the election, but noted that Q1 is typically the lowest revenue quarter [58][60] Question: What are the expected drivers of growth in the podcasting business this year? - Management highlighted expanding product offerings, audience growth, and increased demand as key drivers for podcasting revenue growth [66] Question: Why was political advertising revenue lower than expected? - Management explained that political campaigns are becoming more data-driven, and the company is working to adapt to these changes for future cycles [67][68]