Digital, Politicals Drive iHeartMedia During Q4

iHeartMedia, Inc. Thursday reported financial results for the quarter and year ended December 31, 2020.

Financial Highlights:

Q4 Results: Strong Sequential Improvement Continues

• Q4 Revenue of $936 million down 9% YoY, improving from down 22% YoY in Q3 and 47% YoY in Q2, and a 26% increase from $744 million in Q3
• Q4 Revenue benefited from strong digital growth of 53% YoY (Podcast Revenue increased 100% YoY) and significant political advertising
• GAAP Operating income of $113 million compared to $165 million in the prior-year; a 190% increase from $39 million in Q3
• Adjusted EBITDA of $265 million compared to $306 million in the prior year; a 64% increase from $162 million in Q3
• Generated Cash Flows from operating activities of $80 million and Free Cash Flow of $53 million in Q4
• Cash balance and total available liquidity1 of $721 million and $893 million, respectively, as of December 31, 2020

Full Year 2020

• Revenue of $2,948 million, declined 20% YoY
• Digital revenue increased 26% YoY, including a 91% increase in podcasting revenue
• GAAP Operating loss of $1,738 million, driven primarily by non-cash impairment charges in Q1 and the impact of COVID-19
• Adjusted EBITDA declined to $539 million, compared to $1,001 million in the prior year period
• Generated Cash Flows from operating activities of $216 million and Free Cash Flow of $131 million

Key Actions and Strategic Developments:

• Digital Audio Business to Report Separate Segment Financial Results Starting in Q1 2021
• Moving to three reportable segments: iHeartMedia Multiplatform Group, iHeartMedia Digital Audio Group and Audio & Media Services
• Q4 Digital Audio Group revenue of $172 million, up 53.0% YoY and 18.4% of Consolidated Revenue; and Adjusted EBITDA of $61 million (Adjusted EBITDA margin of 35%)

Pending Triton Digital Acquisition Completes Multi-Year Creation of the Only Total Audio Advertising Technology and Data Solution

• iHeart now positioned to provide complete ad tech solution: hosting/infrastructure, monetization, and measurement
• Substantial content and distribution synergies: now uniquely able to deliver enhanced monetization in podcasting, digital/streaming radio, and broadcast radio

Statement from Senior Management

“We are pleased that the Company continues its steady recovery from the COVID-19 downturn -- and it’s particularly rewarding to see the impressive performance from our areas of strategic investment, like Podcasting, SmartAudio, Digital, and Ad Tech. In addition, with our new reportable segments, we will be able to provide additional insights into both our largest segment and our fastest-growing segment, and help highlight the key metrics and impressive performance of each,” said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. “Our company’s continued transformation was further highlighted by our agreement to acquire Triton Digital, which gives iHeartMedia the only total audio advertising technology and data solution in the market, and which we expect will contribute to our continued growth in our digital and data-enhanced revenue.”

“Our swift response to the COVID pandemic and our diligent management of expenses throughout the year enabled us to successfully achieve approximately $250 million of savings in 2020. This cost management enhanced our operating leverage and helped us to achieve Adjusted EBITDA of $265 million in the fourth quarter, which was an improvement of 64% over the third quarter,” said Rich Bressler, President, Chief Operating Officer and Chief Financial Officer of iHeartMedia, Inc. “The continued sequential improvement of our Revenue, Adjusted EBITDA and Free Cash Flow over the past three quarters has us well positioned for continued recovery into 2021, and our commitment to make the majority of the $200 million of COVID-19 related savings permanent will further enhance the company’s operating leverage as revenue recovers.”