iHeartMedia Conference Summary Company Overview - iHeartMedia is the number one audio company in America, generating approximately $4 billion in annual advertising revenue [4][5] - Revenue composition: about $2.7-$2.8 billion from the multi-platform group (broadcast radio and network business) and about $1.2-$1.3 billion from the digital audio group (podcasting, streaming, websites) [4][5] - The company owns 850 radio stations and operates in 150 cities, reaching approximately 273 million people in the U.S. [4][5] Industry Insights - Broadcast radio listening has increased over the past 10-20 years, contrary to perceptions of decline in traditional media [6][8] - iHeartMedia's audience remains resilient compared to declining viewership in ad-supported television and print media [8][9] - The company believes in the monetization of consumer relationships and has a strategic advantage with a large sales force across the country [9][10] Revenue Challenges - Revenue shrinkage is attributed to economic challenges and advertising recession rather than a decline in listenership [10][11] - iHeartMedia expects the multi-platform group to return to low single-digit revenue growth due to audience resiliency and efficiency [14][20] Digital Transformation - iHeartMedia is implementing a digital programmatic initiative to allow advertisers to buy broadcast inventory similarly to digital ads, enhancing scalability and ease of purchase [16][17] - The total addressable market (TAM) for digital entertainment is estimated at $250-$300 billion, with iHeartMedia aiming to capture a share of this market [18][19] Podcasting Growth - Podcasting is the primary growth driver for iHeartMedia, with projected revenue of $550 million in 2025, up from $50 million in 2019, reflecting a 22% growth rate [21][23] - iHeartMedia is the largest podcast publisher in the U.S., surpassing the combined revenue of its closest competitors [22][23] - The company emphasizes the importance of promoting podcasts through its broadcast channels to maximize audience reach [24][25] Cost Management and Efficiency - iHeartMedia has implemented a $150 million cost reduction program for 2025 and an additional $50 million for 2026, focusing on efficiency across both multi-platform and digital groups [31][32] - The company has reduced its workforce from 13,000 to 8,500 and cut office space from 4 million sq ft to 2 million sq ft [36] Financial Position - iHeartMedia aims to reduce its leverage ratio to 3-3.5 times EBITDA, currently standing at approximately 5.5-6 times [37][38] Future Outlook - The company is optimistic about its digital transformation, with broadcast inventory now being sold programmatically and measured similarly to digital campaigns [40][41] - iHeartMedia anticipates a strong year in political advertising due to the upcoming election cycle [20][42] - The management is focused on creating value for stakeholders through innovative revenue streams and leveraging existing assets [27][42]

Core Viewpoint - iHeartMedia's shares reached their highest level in over two years following reports of Netflix negotiating to license video podcasts from the company [1] Group 1 - iHeartMedia's stock performance indicates a positive market reaction to potential partnerships with major streaming platforms like Netflix [1] - The licensing of video podcasts could enhance iHeartMedia's revenue streams and expand its content distribution [1]

Core Insights - SiriusXM Holdings Inc reported its fiscal third-quarter 2025 results, showing a mixed performance with a slight decline in subscriber revenue and total subscribers, but exceeding revenue expectations [1][2]. Financial Performance - Subscriber revenue for the quarter was $1.63 billion, down from $1.65 billion year-over-year [2]. - Total quarterly revenue declined by 1% year-on-year to $2.16 billion, surpassing the analyst consensus estimate of $2.14 billion [2]. - GAAP EPS was 84 cents, missing the analyst consensus estimate of 77 cents [2]. - Advertising revenue increased to $455 million, up from $450 million a year ago [2]. Subscriber Metrics - Self-pay subscribers decreased by 262,000 to 31.24 million compared to 32.81 million year-over-year [3]. - The self-pay monthly churn rate remained steady at 1.6% year-over-year for the quarter [3]. Segment Performance - SiriusXM segment revenue declined by 1% year-over-year to $1.6 billion, attributed to a lower average base of self-pay subscribers, despite an increase in average revenue per user (ARPU) to $15.19 from $15.16 [4]. - Pandora segment advertising revenue rose by 2% year-over-year to $416 million [4]. - Pandora's Monthly Active Users (MAUs) were 41.56 million, down from 43.72 million a year ago [5]. Profitability and Cash Flow - Net income was $297 million, compared to a net loss of $2.96 billion year-over-year, which included a significant noncash goodwill impairment [6]. - Free cash flow generated in the quarter was $257 million, up from $93 million a year ago [6]. Shareholder Returns - The company distributed $91 million through dividends and repurchased $20 million in shares, returning a total of $111 million to shareholders during the quarter [7]. Future Outlook - For FY25, SiriusXM expects revenue of $8.525 billion, adjusted EBITDA of $2.625 billion, and free cash flow of $2.625 billion, all slightly above prior forecasts [8].

Q2 2025 Financial Performance - Q2 Revenue reached $934 million, a 0.5% increase year-over-year; excluding political revenue, the increase was 1.5%[10] - Consolidated Adjusted EBITDA increased by 3.9% to $156 million, compared to $150 million in Q2 2024[10] - Digital Audio Group revenue grew by 13% to $324 million[10] - Podcast revenue within the Digital Audio Group increased by 28% to $134 million[10] - Multiplatform Group revenue decreased by 5% to $545 million; excluding political revenue, the decrease remained at 5%[10] Segment Performance - Digital Audio Group Adjusted EBITDA margin was 33.2%[10] - Multiplatform Group Adjusted EBITDA margin was 17.7%[10] - Audio & Media Services Group Adjusted EBITDA margin was 35%[12] 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[33] - The modernization program aims for $200 million in gross savings[13] - 55% of net savings are expected from Sales, Marketing, & Support, 30% from Programming & Content, 10% from Product, Tech, & Other, and 5% from General & Admin[14] Podcast Leadership - iHeartMedia is the 1 podcast publisher in the US, leading in downloads, unique listeners, revenue, and earnings[69] - The company's average monthly podcast audience has more than doubled in 8 years, reaching 158 million in 2025 compared to 67 million in 2017[20, 21]

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]