iHM Reports Consolidated Revenue Jumped 13.5 Percent Y2Y

iHeartMedia, Inc. today reported financial results for the quarter and year ended December 31, 2021.

Q4 2021 Consolidated Results

• Q4 Revenue of $1,062 million up 14% YoY; exceeding prior guidance of up approximately 10%
• Excluding the impact of Political, Q4 revenue was up 25% YoY
• Q4 2021 Consolidated Revenue up 3.5% vs. Q4 2019
• GAAP Operating income of $123 million increased 9% vs. $113 million in Q4 2020
• Consolidated Adjusted EBITDA of $294 million increased 11% YoY
• Q4 2021 Digital Audio Group Delivers Strong Growth and Profit Trajectory
• Digital Audio Group Revenue up 59% YoY
• Podcast Revenue up 130% YoY
• Digital Revenue excluding Podcast up 36% YoY
• Segment Adjusted EBITDA of $99 million increased 65% YoY; and up from $67 million in Q3 2021
• Digital Audio Group Adjusted EBITDA margin of 36%, up 137 bps from 35% in Q4 2020 and up 369 bps from 33% in Q3 2021
• Q4 2021 Multiplatform Group Momentum Accelerates
• Multiplatform Group Revenue up 9% YoY
• Excluding the impact of Political, Q4 revenue was up 17% YoY
• Q4 2021 down 14% vs Q4 2019 -- continuing trend of sequential quarterly improvement vs. 2019
• Segment Adjusted EBITDA of $249 million increased 20% YoY; and up from $208 million in Q3 2021
• Multiplatform Group Adjusted EBITDA margin of 34%, up 317 bps from 31% in Q4 2020 and up 262 bps from 32% in Q3 2021
• Free Cash Flow Generation and Proactive Capital Structure Improvements
• Generated Cash Flows from operating activities of $134 million
• Generated Free Cash Flow of $52 million
• Capital Expenditures of $82 million vs. $50 million in Q3 2021, driven primarily by accelerated real estate consolidation
• Cash balance and total available liquidity1 of $352 million and $775 million, respectively, as of December 31, 2021
• Term loan reduced by $250 million (July); $60 million Preferred repurchased (October)

Full Year 2021 Highlights

• Revenue of $3,558 million, up 21% YoY; excluding political Revenue2, Revenue increased 27% YoY, driven by growth across Multiplatform Group and Digital Audio Group
• Multiplatform Group Revenue up 13% YoY
• Digital Audio Group Revenue up 76% YoY
• GAAP Operating income of $155 million was up from a loss of $1,738 million in the year ended December 31, 2020, which included non-cash impairment charges and the impact of COVID-19
• Consolidated Adjusted EBITDA of $811 million, up from $539 million in the year ended December 31, 2020
• Generated Cash Flows from operating activities of $331 million and Free Cash Flow of $147 million

Bob Pittman

"We are pleased to report another strong quarter and to wrap up a very strong year, further evidence of our momentum and the continuing digital transformation of iHeartMedia into a data-led, digital business with important new platforms like podcasting built on the unparalleled scale and audience reach of our broadcast radio assets," said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. "We believe that this strong performance in Q4 and full year positions us well for continued growth in 2022."

"Bob and I are pleased to report that our strong top line growth continues to be coupled with margin expansion, generating Adjusted EBITDA of $294 million in the fourth quarter. We remain confident that we will continue to grow revenue going forward and, combined with our strict cost discipline, that we will continue to generate profit and Free Cash Flow as we remain focused on reducing our net leverage to approximately 4x," said Rich Bressler, President, Chief Operating Officer and Chief Financial Officer of iHeartMedia, Inc.

Fourth Quarter 2021 Consolidated Results

Our consolidated revenue increased $126.5 million, or 13.5%, during the three months ended December 31, 2021 compared to the same period of 2020. The increase in Consolidated revenue is attributable to the continued recovery from the macroeconomic effects of COVID-19 and the continuing growth of our operating businesses. Multiplatform revenue increased $61.3 million, or 9.2%, primarily resulting from strengthening demand for broadcast advertising compared to the fourth quarter of 2020, partially offset by lower political advertising revenue compared to the same period of 2020, which was a presidential election year. Digital Audio revenue increased $101.1 million, or 58.7%, driven primarily by continuing increases in demand for digital advertising and the continued growth of podcasting. Audio & Media Services revenue decreased $34.7 million due to lower political advertising revenue, partially offset by the continued recovery from the impact of COVID-19.