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.

• Adjusted EBITDA for Q2 was $150 million, within guidance but down from $191 million in Q2 2023, reflecting higher costs and large non-cash impairment charges.

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

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

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

Financial highlights

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

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

• Net loss for Q2 was $982 million, compared to $883 million in Q2 2023.

• Free cash flow was $5.6 million, down from $34 million in the prior year quarter.

• Cash and equivalents at quarter-end were $365 million; total available liquidity was $791 million.

Outlook and guidance

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

• Q3 2024 Adjusted EBITDA guidance: $200–$220 million; full year 2024 Adjusted EBITDA: $760–$800 million.

• Political revenues for 2024 are pacing 20% higher than the last presidential cycle, expected to set a new record.

• Free cash flow expected to build sequentially through the year, supported by robust political advertising.

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