iHM Reports Total Revenue Dips 3.8 Percent Y2Y

iHeartMedia, Inc. today reported financial results for the quarter ended March 31, 2023.

Financial Highlights:

Q1 2023 Consolidated Results

• Q1 Revenue of $811 million, down 3.8%; above the guidance range of down mid-single digits
• GAAP Operating loss of $49 million vs. GAAP Operating income of $12 million in Q1 2022
• Consolidated Adjusted EBITDA of $93 million, above guidance range of $80 million to $90 million, compared to $145 million in Q1 2022
• Cash Flows used for operating activities of $(94) million
• Free Cash Flow of $(133) million in seasonally lowest Free Cash Flow quarter of the year

Q1 2023 Digital Audio Group Results

• Digital Audio Group Revenue of $223 million up 4%Podcast Revenue of $77 million up 12%
• Digital Revenue excluding Podcast of $147 million up 1%
• Segment Adjusted EBITDA of $54 million up 3%Digital Audio Group Adjusted EBITDA margin of 24.2%

Q1 2023 Multiplatform Group Results

• Multiplatform Group Revenue of $529 million down 7%
• Segment Adjusted EBITDA of $87 million down 35%Multiplatform Group Adjusted EBITDA margin of 16.5%

Continued Proactive Capital Structure Improvement Through Debt Paydown

• Cash balance and total available liquidity2 of $188 million and $601 million, respectively, as of March 31, 2023
• Repurchased $20 million in principal balance of 8.375% Senior Unsecured Notes (at a discount to par) for $15 million in cash; expected to generate approximately $2 million of annualized interest savings
• As of March 31 2023, combined Notes repurchases of $350 million at a discount to par for $315 million cash; expected to generate approximately $30 million of annualized interest savings

Guidance

• Q2 Consolidated Revenue expected to decline in the mid-single digits; Q2 Consolidated Revenue excluding the impact of Political expected to decline in the low-single digits
• April Consolidated Revenue down approximately 5%
• Q2 Consolidated Adjusted EBITDA3 expected to be $180 million to $200 million
• Remain committed to long term target of approximately 4x Net Debt to Adjusted EBITDA

“We are pleased to report that our first quarter 2023 results were a bit above the high end of our Adjusted EBITDA and Revenue guidance ranges – and that more importantly, while both the macroeconomic climate and the advertising marketplace remain uncertain, the audio and digital advertising markets appeared to be stronger in the quarter than we had initially anticipated,” said Bob Pittman, Chairman and CEO, iHeartMedia, Inc. 

“We expect that our second quarter Adjusted EBITDA, while below 2022 levels, will be approximately double what we generated in the first quarter, and this, in combination with our Q1 first quarter performance relative to guidance, gives us confidence that our Adjusted EBITDA results will continue to improve throughout 2023, and that we will be well positioned to build further in 2024 in terms of revenue growth, profitability, and Free Cash Flow generation.”