iHeartMedia’s Revenues Jump 10.7 Percent

iHeartMedia, Inc. has reported financial results for the quarter ended June 30, 2022.

Financial Highlights:

Q2 2022 Consolidated Results

• Q2 Revenue of $954 million, up 11% YoY; in line with guidance of up approximately 10%-14%
• GAAP Operating income of $83 million vs. $28 million in Q2 2021Consolidated Adjusted EBITDA of $237 million increased 29% YoY; in line with guidance of $225 million to $245 million
• Consolidated Adjusted EBITDA margin of 24.9%, up 345 bps from 21.4% in Q2 2021
• Cash Flows from operating activities of $156 million
• Free Cash Flow of $106 million; Free Cash Flow including $20 million of net proceeds from real estate sales was $127 million

Q2 2022 Digital Audio 

• Group Continues Strong Growth and Profit TrajectoryDigital Audio Group Revenue of $253 million up 28% YoYPodcast Revenue of $86 million up 60% YoY
• Digital Revenue excluding Podcast of $167 million up 15% YoY
• Segment Adjusted EBITDA of $79 million increased 45% YoYDigital Audio Group Adjusted EBITDA margin of 31.2%, up 380 bps from 27.4% in Q2 2021

Q2 2022 Multiplatform 

• Group Momentum ContinuesMultiplatform Group Revenue of $633 million up 5% YoYSegment Adjusted EBITDA of $195 million increased 7% YoYMultiplatform Group Adjusted EBITDA margin of 30.7%, up 77 bps from 29.9% in Q2 2021
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• Strong Free Cash Flow Generation, Proactive Capital Structure Improvement and Debt PaydownFree Cash Flow of $106 million; including $20 million of net proceeds from real estate sales, Free Cash Flow including net proceeds from real estate sales was $127 millionCapital Expenditures of $50 million vs. $23 million in Q1 2022, driven primarily by accelerated real estate consolidation
• Cash balance and total available liquidity1 of $295 million and $715 million, respectively, as of June 30, 2022

Bob Pittman

“We’re pleased to report another quarter of solid results for iHeart in terms of consumer usage, revenue and earnings growth and, most importantly, strong Free Cash Flow generation. The Digital Audio Group continues to deliver industry-leading growth, and our Multiplatform Group continues to demonstrate that it is a growth engine for the company as well,” said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. 

“As the #1 audio company in America across broadcast radio, digital radio and podcasting – and the largest consumer reach audio company in the U.S. by far, we remain committed to building our businesses for future growth and continuing to deliver both trusted companionship to our listeners and significant and unique value to our advertising partners.”

"Bob and I are pleased that the company performed well this quarter, with Adjusted EBITDA of $237 million, and consolidated revenues up 11% year-over year – in line with the revenue guidance range we provided – despite the uncertain economic environment,” said Rich Bressler, President, Chief Operating Officer and Chief Financial Officer of iHeartMedia, Inc. “We remain focused on the generation of Free Cash Flow, continuing Adjusted EBITDA margin expansion, and making significant progress toward reducing our net leverage to 4x.”