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Sep 30, 2023
iHeartMedia Q3 2023 Earnings Report
iHeartMedia's Q3 2023 results were reported, with revenue slightly better than guidance, and digital audio group showing growth.
Key Takeaways
iHeartMedia, Inc. reported Q3 2023 consolidated revenue of $953 million, a decrease of 3.6% year-over-year. Excluding political revenue, revenue decreased by 1%. The company's GAAP Operating income was $69 million, compared to an operating loss of $211 million in Q3 2022. Adjusted EBITDA was $204 million, compared to $252 million in Q3 2022. The Digital Audio Group saw revenue increase by 5%, while the Multiplatform Group's revenue decreased by 5%.
Consolidated revenue decreased by 3.6% to $953 million; excluding political revenue, the decrease was 1%.
GAAP Operating income was $69 million, a significant improvement from the $211 million operating loss in Q3 2022 which included a $302 million non-cash impairment charge.
Digital Audio Group revenue increased by 5% to $267 million, driven by a 13% increase in podcast revenue.
The company repurchased $89 million in principal balance of senior unsecured notes for $65 million in cash, expecting to generate approximately $7 million in annualized interest savings.
Revenue by Segment
Forward Guidance
iHeartMedia anticipates Q4 Consolidated Revenue to decline in the high-single digits, but excluding political impact, the decline is expected to be in the low-single digits. Consolidated Adjusted EBITDA is projected to be between $205 million and $215 million.
Positive Outlook
- Sequential quarterly improvement for both the Digital Audio Group and the Multiplatform Group.
- Resume growth in terms of revenue and profitability as the advertising ecosystem continues to improve.
- Record political advertising year expected in 2024.
- Long term target of approximately 4x Net Debt to Adjusted EBITDA (net leverage).
Challenges Ahead
- Lingering uncertainty in the advertising market driven by the current global geopolitical situation.
- Q4 Consolidated Revenue expected to decline in the high-single digits.
- October Consolidated Revenue down approximately 8%.
- Inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliations
Historical Earnings Impact
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Avg. Return Before/After Earnings
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