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]

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]

Financial Data and Key Metrics Changes - Total revenue decreased by 6.4%, and down 3.7% excluding political and Daily Wire impacts, aligning with previous pacing commentary [16] - EBITDA for the quarter was $3,500,000, reflecting ongoing challenges in the advertising market [16] - Digital revenue grew by 6% overall, or 20% excluding the loss of the Daily Wire relationship [16] Business Line Data and Key Metrics Changes - Digital Marketing Services (DMS) revenue increased by 30% in Q1, driven by a 41% increase in total customers and a 16% increase in average campaign order size [7][16] - Podcasting revenue was down 13% when including the Daily Wire, but up nearly 40% when excluding it [9] - Streaming revenue increased by 4% during the quarter, benefiting from in-house sales management [10] Market Data and Key Metrics Changes - Advertising pullbacks were noted in automotive, retail, and consumer packaged goods (CPG) categories, while insurance and financial categories showed growth [11][17] - The Beyond Home market business grew by 48% in the quarter, following a 45% growth in the previous quarter [12] Company Strategy and Development Direction - The company is focusing on digital business growth, particularly in DMS, and leveraging its extensive audience reach to partner with nontraditional parties [5][8] - Cost efficiencies are being pursued, with $7,500,000 in additional annualized fixed cost reductions executed [5][13] - The company is exploring AI applications to enhance operational efficiency and customer service [13][14] Management's Comments on Operating Environment and Future Outlook - The macro environment has become more challenging, with tariffs and government spending cuts impacting consumer demand and advertising spending [4] - Pacing is down approximately 10%, or 5% excluding political and Daily Wire impacts, indicating ongoing economic uncertainty [15][18] - The company remains optimistic about potential FCC deregulation, which could positively affect the industry [26] Other Important Information - The company ended the quarter with $53,000,000 in cash and a net debt of $589,000,000 [18] - The company anticipates asset sales to generate between $10,000,000 to $15,000,000 in proceeds this year [28] Q&A Session Summary Question: Were there any programs or content changes in the network side compared to last year? - The network program did not significantly change, and the decline was driven by general market demand weakness [21][22] Question: Can you provide month-by-month revenue performance for the quarter? - Revenue pacing was down mid-single digits, ending slightly over 6% down due to late advertiser orders [24] Question: What are the implications of FCC deregulation and asset sales? - The company is optimistic about FCC deregulation and expects a notice of proposed rulemaking by late summer [26] - Small asset sales occurred in Q1, with a larger land sale in Nashville anticipated [28]

Financial Data and Key Metrics Changes - Total revenue decreased by 6.4%, and down 3.7% excluding political and the impact of The Daily Wire, aligning with previous pacing commentary [17] - EBITDA for the quarter was $3,500,000, reflecting ongoing challenges in the advertising market [17] - Digital revenue grew by 6% overall, or 20% excluding the loss of The Daily Wire relationship [17] Business Line Data and Key Metrics Changes - Digital Marketing Services (DMS) revenue increased by 30% in Q1, driven by a 41% increase in total customers and a 16% increase in average campaign order size [7][17] - Podcasting revenue was down 13% when including the negative comp from Daily Wire, but up close to 40% when excluding it [9] - Streaming revenue increased by 4% during the quarter, benefiting from bringing the sales function in-house [10] Market Data and Key Metrics Changes - Advertising spending saw pullbacks in key categories such as automotive, retail, and consumer packaged goods (CPG), while insurance and financial categories showed growth [11][17] - The Beyond Home market business grew by 48% in the quarter, following a 45% growth in the previous quarter [12] Company Strategy and Development Direction - The company is focusing on digital business growth, particularly in DMS, and is committed to transforming how it leverages its assets [5][6] - Cost efficiencies are being pursued, with an additional $7,500,000 in annualized fixed cost reductions executed during the quarter [13][18] - The company is optimistic about potential FCC deregulation, which could positively impact the industry [27] Management's Comments on Operating Environment and Future Outlook - The macro environment has become more challenging, with supply chain concerns and inflation pressures affecting consumer sentiment and advertising spending [4] - Pacing is down approximately 10%, or 5% excluding political and Daily Wire impacts, indicating ongoing economic uncertainty [16][19] Other Important Information - The company ended the quarter with $53,000,000 in cash and a net debt of $589,000,000 [19] - The company is exploring asset sales, with expectations of generating $10 to $15 million from such sales this year [29] Q&A Session Summary Question: Were there any programs or content that you had last year that you didn't have this year in the first quarter? - The network's programming did not significantly change, and the decline was driven by general market demand weakness [22][23] Question: Can you provide a month-by-month revenue performance for the quarter? - Revenue pacing was down mid-single digits, ending slightly over 6% down due to late advertiser orders [25] Question: What are the prospects of FCC deregulation and asset sales? - The company is optimistic about FCC deregulation and expects a notice of proposed rulemaking by late summer [27] - Small asset sales occurred in Q1, with a cautious optimism for a significant land sale in Nashville [29]