In This Article:
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Adjusted EBITDA: $105 million, flat compared to the prior year.
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Consolidated Revenue: Up 1% year-over-year; excluding political impact, up 1.8%.
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Digital Audio Group Revenue: $277 million, up 16% year-over-year.
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Digital Audio Group Adjusted EBITDA: $87 million, up 27.8% year-over-year; margins at 31.4%.
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Podcast Revenue: Grew 28% year-over-year.
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Multiplatform Group Revenue: $473 million, down 4.2% year-over-year; excluding political impact, down 3.4%.
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Multiplatform Group Adjusted EBITDA: $70 million, down 9.3% year-over-year.
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Audio & Media Services Group Revenue: $59 million, down 14.2% year-over-year.
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Audio & Media Services Group Adjusted EBITDA: $16 million, down 33.3% year-over-year.
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Net Debt: Approximately $4.6 billion.
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Total Liquidity: $569 million.
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Cash Balance: $168 million.
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Free Cash Flow: Negative $80.7 million, flat compared to the prior year.
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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iHeartMedia Inc (NASDAQ:IHRT) reported a 1% increase in consolidated revenue for Q1 2025, surpassing their guidance of a low-single-digit decline.
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The Digital Audio Group's revenue grew by 16% year-over-year, with podcast revenue increasing by 28%, significantly exceeding expectations.
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The company achieved adjusted EBITDA of $105 million, consistent with prior year and within the guidance range.
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iHeartMedia Inc (NASDAQ:IHRT) continues to lead in the podcasting sector, maintaining a strong #1 position in podcast publishing.
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The company's modernization program is on track to generate $150 million in net savings for 2025, driven by technology and AI advancements.
Negative Points
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The Multiplatform Group, including Broadcast Radio, Networks, and Events, saw a revenue decline of 4.2% year-over-year.
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The Audio & Media Services Group experienced a 14.2% decrease in revenue, with adjusted EBITDA down 33.3%, primarily due to Katz television.
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iHeartMedia Inc (NASDAQ:IHRT) reported a GAAP operating loss of $25.4 million for the first quarter.
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The company's net debt remains high at approximately $4.6 billion, with a net debt to adjusted EBITDA ratio of 6.5 times.
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Free cash flow was negative $80.7 million for the quarter, consistent with the prior year, indicating ongoing cash flow challenges.
Q & A Highlights
Q: Can you provide more color on the current advertising market and any recent changes in advertiser behavior? A: Robert Pittman, Chairman of the Board, noted that larger advertisers are maintaining their spending, as evidenced by a 2% increase in national advertising revenue. However, small and medium-sized businesses are more sensitive to negative news, though recent positive developments are encouraging. Richard Bressler, President and CFO, added that pacing numbers are just a point in time and highlighted the variability in monthly performance.