iHeartMedia Reports 5% Rise in Q3 Consolidated Revenue

RADIO ONLINE | Thursday, November 7, 2024

iHeartMedia

iHeartMedia reported robust growth for the third quarter with a 5.8% rise in consolidated revenue to $1,008 million, aligned with its mid-single-digit growth forecast. Digital Audio Group stood out with a 13% increase in revenue, reaching $301 million. This surge was spearheaded by an 11% rise in podcast revenue, totaling $114 million, and a 14% increase in other digital revenues, excluding podcasts, which amounted to $187 million. The segment's Adjusted EBITDA also saw a 7% increase to $100 million, boasting a margin of 33.2%.

However, the Multiplatform Group faced some challenges, with revenue down 1% to $620 million. When excluding political revenue, the decline steepened to 3%. This segment's Adjusted EBITDA fell by 20%, leading to a margin reduction to 21.0%.

iHeartMedia's overall operating income for the quarter was $77 million, up from $69 million in the same quarter last year. Adjusted EBITDA was reported at $205 million, steady from $204 million in Q3 2023, and within the guidance range of $200 million to $220 million. The company also highlighted a cash flow from operations of $103 million and free cash flow of $73 million.

Looking ahead, iHeartMedia anticipates Q4 consolidated revenue to grow in the high-single digits and projects a 39% increase in Q4 Adjusted EBITDA to approximately $290 million. For the full year, consolidated revenue is expected to increase mid-single digits with Adjusted EBITDA estimated at around $750 million, a rise of about 8%.

Chairman and CEO Bob Pittman stated, "Our third quarter results reflect strong momentum in our podcast and digital ex-podcast businesses, and our effective cost management strategies are expected to generate significant savings in 2025."

In addition to operational achievements, President, COO, and CFO Rich Bressler announced a strategic debt exchange agreement aimed at extending maturities and enhancing financial flexibility.