iHeartMedia Sees Modest Q2 Growth Amidst Digital Gains

RADIO ONLINE | Thursday, August 8, 2024 | 4:10pm CT

iHeartMedia

iHeartMedia saw a slight revenue increase for the second quarter, along with a robust digital performance amidst broader market challenges. The company reported a consolidated revenue of $929 million for Q2 2024, marking a 1% increase year-over-year, which was slightly above the company's guidance of approximately flat growth. This increase comes despite a stagnant political revenue, indicating some underlying strength in the company's core operations.

The company endured a GAAP operating loss of $910 million, a slight deterioration compared to $897 million in the same quarter last year, primarily due to high non-cash impairment charges of $920 million. However, adjusted EBITDA was $150 million, staying within the anticipated guidance range but down from $191 million in Q2 2023.

Cash flow activities also painted a mixed picture, with operating activities generating $27 million and free cash flow totaling $6 million, showing significant drops from the previous year.

Digital Audio Group experienced a standout performance with a 10% increase in revenue to $286 million, driven by a 10% rise in digital revenue excluding podcasts and an 8% increase in podcast revenue. This segment's adjusted EBITDA grew by 9%, with a healthy margin of 32.2%.

Conversely, the Multiplatform Group faced a tougher quarter, with revenues declining by 3% to $576 million. This was compounded by a significant 36% drop in adjusted EBITDA to $104 million, with the adjusted EBITDA margin contracting to 18.1%.

iHeartMedia Chairman and CEO Bob Pittman expressed confidence in the company's trajectory, noting, "Our second quarter results mark the first quarter of year-over-year revenue growth since Q4 2022. We are particularly encouraged by the sustained momentum in our digital and podcast businesses."

President, COO, and CFO Rich Bressler highlighted the strategic outlook, "With digital revenues forming 31% of our total, and political advertising expected to surge, we are well-positioned to enhance our year-over-year EBITDA performance significantly."