iHeartMedia(US:IHRT)2025-08-11 21:30Financial 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]