iHeartMedia (IHRT) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue rose 1.0% year-over-year to $929 million, exceeding guidance, driven by digital and political advertising, while Multiplatform Group revenue declined due to lower broadcast ad spend.

• Digital Audio Group revenue grew 10% to $286 million, now representing 31% of total revenue; podcast revenue increased 8%.

• Adjusted EBITDA for Q2 was $150 million, within guidance but down from $191 million in Q2 2023.

• Net loss widened to $982 million, mainly due to $920 million in non-cash impairment charges related to FCC licenses and goodwill.

• Management expects record political revenue for 2024 and highlighted strong digital and podcast performance.

Financial highlights

• Q2 2024 revenue was $929 million (+1% year-over-year); Adjusted EBITDA was $150 million (margin 16.2%), down from $191 million and 20.8% margin in Q2 2023.

• GAAP operating loss was $909.7 million, impacted by $920 million in non-cash impairment charges.

• Free cash flow for Q2 was $5.6 million, down from $34 million a year ago; cash provided by operating activities was $27 million.

• Net debt at quarter end was $4.85 billion; total available liquidity was $791 million.

• Capital expenditures for the first half of 2024 were $42.8 million, down from $61.9 million in the prior year.

Outlook and guidance

• Q3 2024 consolidated revenue and full-year 2024 revenue both expected to increase in the mid-single digits year-over-year.

• Q3 Adjusted EBITDA guidance is $200–$220 million; full-year 2024 Adjusted EBITDA expected at $760–$800 million.

• Political revenue for 2024 is pacing 20% higher than the last presidential cycle.

• Long-term net leverage target remains at approximately 4x Net Debt to Adjusted EBITDA.

• Management expects sufficient liquidity to fund operations, capital expenditures, and debt service for at least the next twelve months.