iHeartMedia Reports 2.4% Revenue Growth

iHeartMedia, Inc. (NASDAQ: IHRT) today reported financial results for the quarter ended June 30, 2019 . IHRT successfully emerged from Chapter 11 on May 1, 2019 with a streamlined capital structure and completed the listing of its shares on the NASDAQ.

⏩ Financial Highlights 

➤ Second Quarter

• Revenue of $913.3 million, up 2.4% year-over-year,Excluding political revenue, revenue increased 3.9%
• Digital revenue increased 32.8% year-over-year
• Operating income of $181.6 million was up 0.2% year-over-year
• Adjusted EBITDA of $262.9 million, up 3.2% year-over-year
• Adjusted EBITDA margins1 improved to 28.8% from 28.6%, up 20 basis points year-over-year

➤ Year-to-Date

• Revenue of $1,709.1 million, up 2.7% year-over-year, Excluding political revenue, revenue increased 3.7%
• Digital revenue increased 30.6% year-over-year
• Operating income of $200.7 million was down from $243.3 million in the six months ended June 30, 2018 due to non-cash impairment charge of $91.4 million in first quarter of 2019
• Adjusted EBITDA1 of $419.9 million, up 6.4% year-over-year
• Adjusted EBITDA margins1 improved to 24.6% from 23.7%, up 90 basis points year-over-year

“iHeartMedia is the number one audio company in America and the only true multi-platform audio company able to reach consumers at scale,” said Bob Pittman, Chairman and CEO of iHeartMedia, Inc.

Bob Pittman

“There are two segments of the audio sector -- radio, which provides companionship and connection when people want to join the world; and the music collection segment, which people use when they want to tune out and escape the world. As the leader in the radio, or companionship, segment of the audio sector, iHeartMedia uses its unparalleled reach and consumer connection to deliver a compelling experience for our audiences and revenue opportunities across our multiple platforms. As we look ahead, iHeartMedia intends to increase our share of radio advertising spend, participate in TV and digital advertising revenue pools, extend our leadership in podcasting and drive sponsorship revenue.” 

Rich Bressler

We successfully emerged from Chapter 11 on May 1, 2019 and are pleased that the restructuring process resulted in a capital structure that matches our successful operating business. We now have an iHeart business that will focus exclusively on increasing our lead as the number one audio company in the U.S. As demonstrated in our results, iHeartMedia’s increased revenue and overall positive financial performance reflects the resilience and growth of our businesses and the value of our recent investments, particularly in podcasting and data and analytics,” said Rich Bressler, President, Chief Operating Officer, and Chief Financial Officer. 

“We are focused on building long-term shareholder value through a combination of operational and capital structure initiatives and we are prioritizing de-leveraging in our capital allocation policies.”

⏩ Key Operational Highlights

➤Continued to outperform the broadcast radio industry

• Outperformed the broadcast radio industry by over 350 basis points this year alone, according to Miller Kaplan.
• iHM is ranked #1 in over 4 times more markets than the next largest broadcast group in its top 160 markets.
• iHM reaches 275 million Americans - more than the top two closest broadcast radio competitors combined.

➤Extended leadership in the fast-growing podcast segment

• #1 commercial podcaster in America measured by monthly downloads and unique listeners as measured by Podtrac.
• More than 300% growth in podcast listeners on the iHeartRadio app in the last year.
• Expanded unique monthly podcast audience by 277% year over year - faster than any other major company.
• Launched new original podcasts on iHeartRadio, including “Insomniac,” hosted by Scott Benjamin, “Sleepwalkers,” hosted by Emmy and Peabody Award winner Oz Woloshyn and co-hosted by Karah Preiss, former host of The Huffington Post science show “Talk Nerdy To Me,” and “Life Will Be the Death of Me,” hosted by comedian Chelsea Handler.

➤Produced events that enhance artist partnerships, provide crossover promotions for our stations and deliver unique brand building and activation opportunities to advertisers

• Announced the lineup for the “2019 iHeartRadio Music Festival,” the annual two-day event hosted at Las Vegas’ T-Mobile Arena, which will be broadcast live via iHM radio stations across more than 150 markets and will air on a televised special on The CW Network and will be live-streamed on The CW App.
• Hosted the “2019 iHeartRadio Wango Tango Presented by The JUVÉDERM® Collection of Dermal Fillers” at the Dignity Health Sports Park in Los Angeles, which was exclusively broadcast in a 90-minute TV special on Freeform, livestreamed by LiveXLive, and aired on iHM radio stations across 100 markets.
• Showcased Country music’s biggest superstars at the sixth annual “iHeartCountry Festival Presented by Capital One®” at the Frank Erwin Center in Austin, Texas, which was broadcast live in over 100+ local markets and on iHeartRadio.com, as well as live-streamed exclusively on LiveXLive.

➤Expanded our reach through digital and social channels

• Posted 12th consecutive month of year-over-year total listening hours growth, as of June 2019.
• Finished the quarter with more than 130 million registered users on the iHeartRadio app.
• Recorded 13 million monthly unique visitors on Snapchat and 23 million monthly unique visitors on YouTube.