iHeartMedia Reports Q4 and Full-Year 2024 Results

RADIO ONLINE | Thursday, February 27, 2025

iHeartMedia

iHeartMedia reported an 18.2% year-over-year increase in Adjusted EBITDA for the fourth quarter of 2024, reaching $246 million, marking the highest percentage growth in nearly three years. Consolidated revenue for the quarter rose 4.8% to $1.12 billion, primarily driven by increases in political and digital revenue. Excluding political advertising, however, revenue declined by 1.8% compared to the same period in 2023.

GAAP operating income for the quarter totaled $105 million, up from $80 million in the fourth quarter of 2023. Despite reporting cash provided by operating activities of $1 million, the company experienced negative free cash flow of $24 million, largely due to $89 million in Debt Exchange Transaction fees and $46 million in accrued interest paid as part of the restructuring. Excluding these debt-related costs, free cash flow was $111 million.

For the Digital Audio Group, revenue grew 7% year-over-year to $339 million, with podcast revenue rising 6% to $140 million. Digital revenue excluding podcasts increased 7% to $199 million. Segment Adjusted EBITDA rose 2% to $119 million, with a margin of 35.1%.

Multiplatform Group revenue was flat at $684 million, but when excluding political advertising, the segment saw a 5% decline. Segment Adjusted EBITDA increased 6% to $150 million, with a margin of 21.9%.

Audio & Media Services revenue surged 44.7% to $98 million, largely due to increased political advertising, while segment Adjusted EBITDA climbed 136% to $49 million, improving the margin to 49.8%.

iHeartMedia reported total revenue of $3.86 billion for 2024, up 3% from the previous year. Excluding political advertising, revenue remained flat. The Digital Audio Group led growth, with a 9% increase in revenue, including a 10% rise in podcast revenue and an 8% increase in digital revenue excluding podcasts. The Multiplatform Group, in contrast, saw a 3% revenue decline, which deepened to 5% when excluding political advertising.

GAAP operating loss for 2024 stood at $763 million, an improvement from the $797 million loss in 2023, primarily due to non-cash impairment charges. Adjusted EBITDA rose slightly to $706 million from $697 million the previous year. The company generated $71 million in operating cash flow, though free cash flow was negative at $26 million due to debt-related expenses. Excluding these costs, adjusted free cash flow was $109 million.

Bob Pittman, Chairman and CEO of iHeartMedia, stated, "Our strong fourth quarter results highlight the inherent operating leverage in our business. We successfully completed a major debt restructuring, extending maturities and maintaining stable cash interest expenses, which gives us flexibility to focus on shareholder value in 2025 and beyond."

President, COO, and CFO Rich Bressler added, "We closed the quarter with the lowest net debt position in our history. Our total liquidity stood at $686 million, and we remain on track to achieve a net debt-to-Adjusted EBITDA ratio of 3.2 times by 2028."

iHeartMedia expects first-quarter 2025 revenue to decline by low single digits. Consolidated Adjusted EBITDA for the quarter is projected between $100 million and $110 million. For the full year, revenue is expected to be flat in this non-political year, with Adjusted EBITDA forecasted at approximately $770 million.