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Dec 31, 2024
iHeartMedia Q4 2024 Earnings Report
iHeartMedia, Inc. reported financial results for the fourth quarter and full year ended December 31, 2024, highlighting a significant increase in consolidated adjusted EBITDA and a successful debt exchange transaction.
Key Takeaways
iHeartMedia, Inc. reported a strong fourth quarter in 2024 with consolidated revenue up 4.8% and consolidated Adjusted EBITDA increasing by 18.2%. The company also successfully completed a debt exchange transaction, reducing net debt to its lowest historical level and extending maturities.
Consolidated revenue for Q4 2024 increased by 4.8% to $1,118 million, driven by political and digital revenue growth.
Consolidated Adjusted EBITDA for Q4 2024 rose by 18.2% to $246 million, marking the highest percentage increase in almost three years.
The company completed a debt exchange transaction, exchanging approximately $4.8 billion of existing debt, extending maturities by three years, and achieving the lowest Net Debt in its history.
A modernization cost reduction program is expected to generate $200 million in annual cost savings in 2025, leading to an anticipated net cost reduction of $150 million.
iHeartMedia
iHeartMedia
iHeartMedia Revenue by Segment
Revenue by Segment
Multiplatform Group Revenue
CapyFin.comDigital Audio Group Revenue
CapyFin.comAudio & Media Services Group Revenue
CapyFin.com Forward Guidance
iHeartMedia expects Q1 consolidated revenue to decline low-single digits and Q1 consolidated Adjusted EBITDA to be approximately $100 million to $110 million. For the full year 2025, consolidated revenue is expected to be approximately flat in a non-political year, with consolidated Adjusted EBITDA around $770 million.
Positive Outlook
- Full Year 2025 Consolidated Adjusted EBITDA expected to be approximately $770 million.
- Expected net cost reduction of $150 million in 2025 from modernization program.
- Company remains on track to achieve Net Debt to Adjusted EBITDA ratio of 3.2-times by the end of 2028.
- Debt Exchange Transaction extended maturities by three years and kept consolidated annual cash interest essentially flat.
- Lowest Net Debt in the history of the Company achieved.
Challenges Ahead
- Q1 Consolidated Revenue expected to decline low-single digits.
- Q1 Consolidated Adjusted EBITDA expected to be approximately $100 million to $110 million, lower than Q4 2024.
- Full Year 2025 Consolidated Revenue expected to be approximately flat in a non-political year, indicating limited growth.
- Anticipated cost increases of $50 million for 2025, partially offsetting cost savings.
- Free Cash Flow was negative in Q4 2024, impacted by Debt Exchange Transaction fees and accrued interest.
Revenue & Expenses
Visualization of income flow from segment revenue to net income