iHM Notes Uptick in Revenue In Q1 Earnings Report

iHeartMedia, Inc. released its Q1 2025 earnings report, detailing financial performance for the quarter ended March 31, 2025.

Financial Highlights

• Revenue: Q1 2025 consolidated revenue was $807 million, representing a 1.1% increase compared to $799 million in Q1 2024. This exceeded the consensus analyst estimate of $787.36 million. The growth was driven by strong performance in digital audio, particularly podcasting, despite a decline in political advertising revenue. Excluding political revenue, Q1 revenue was up 0.1% year-over-year.
• Adjusted EBITDA: Consolidated Adjusted EBITDA was $104.59 million, nearly flat compared to $104.62 million in Q1 2024. This result fell within the company's guidance range of $100 million to $110 million, reflecting resilience in a challenging economic environment.
• GAAP Operating Loss: The company reported a GAAP operating loss of $25 million, an improvement from the $35 million loss in Q1 2024, driven by cost-saving initiatives and revenue growth.
• Earnings Per Share (EPS): The reported EPS was not explicitly detailed in the provided sources, but analyst estimates had forecasted a normalized EPS loss of -$0.52 for Q1 2025.

iHM reports Digital Audio Group revenue grew by 13%, fueled by a 17% increase in podcast revenue.  Also:

Multiplatform Group: Revenue declined by 3.8%, reflecting softness in broadcast advertising due to market uncertainties.
Audio and Media Services Group: Revenue fell approximately 15%, primarily due to lower political advertising compared to the prior year.

iHeartMedia continued its cost-saving initiatives, with programs announced in 2024 expected to yield $150 million in net annual savings in 2025, offsetting $50 million in cost increases for a net benefit of $100 million. These efforts include organizational flattening, eliminating redundancies, and leveraging technology to streamline operations.

Bob Pittman

The company completed a significant debt exchange transaction in Q4 2024, exchanging $4.8 billion of existing debt and extending maturities by three years, maintaining stable annual cash interest. This is part of a broader strategy to reduce the net debt-to-EBITDA ratio to approximately 5.5x by the end of 2025, with a long-term target of 3.2x by 2028.

iHeartMedia emphasized its leadership in audio, reaching 9 out of 10 Americans monthly and maintaining the top podcast audience in the U.S. The company highlighted its multiplatform approach, combining radio, digital, podcasts, and live events to drive consumer engagement.

CEO Bob Pittman noted that the Q1 results demonstrate resilience amid an uncertain economic and advertising environment. The company sees 2025 as a non-political year, which may impact certain revenue streams, but digital audio growth and cost efficiencies are expected to support profitability.