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Jun 30, 2023
iHeartMedia Q2 2023 Earnings Report
iHeartMedia reported a decline in revenue but Adjusted EBITDA was within guidance range.
Key Takeaways
iHeartMedia, Inc. reported a decrease in consolidated revenue by 3.6% to $920 million for Q2 2023, slightly better than guidance. The GAAP operating loss was $897 million, including $961 million of non-cash intangible impairment charges. Consolidated Adjusted EBITDA was $191 million, within the guidance range.
Q2 revenue was $920 million, a 3.6% decrease, but slightly better than the guidance range.
GAAP Operating loss of $897 million includes $961 million in non-cash intangible impairment charges.
Consolidated Adjusted EBITDA was $191 million, within the guidance range.
Digital Audio Group Revenue increased by 3% to $261 million, driven by podcast revenue growth.
iHeartMedia
iHeartMedia
iHeartMedia Revenue by Segment
Revenue by Segment
Multiplatform Group Revenue
CapyFin.com Forward Guidance
iHeartMedia anticipates Q3 Consolidated Revenue to decline in the mid-single digits and expects Q3 Consolidated Adjusted EBITDA to be between $195 million and $205 million.
Positive Outlook
- Improving macroeconomic trends expected to positively impact the second half of the year, particularly in Q4.
- Multiplatform revenues expected to continue quarterly sequential improvement.
- Digital Audio Group revenues projected to continue growing in the second half of 2023.
- Presidential election ahead is expected to generate record political advertising dollars.
- If the advertising marketplace recovery continues, the company expects a strong 2024 with a resumption of growth in revenue, profitability, and Free Cash Flow generation.
Challenges Ahead
- Q3 Consolidated Revenue is expected to decline in the mid-single digits.
- Q3 Consolidated Revenue, excluding the impact of Political revenue, is expected to decline in the low-single digits.
- July Consolidated Revenue was down approximately 5%.
- Challenging macroeconomic environment impacting broadcast advertising.
- Decline in political advertising affecting Multiplatform revenue.