NASDAQ$IHRT
iHeartMedia Inc · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Reported a significant negative impact on financial performance due to the COVID-19 pandemic.
iHeartMedia Inc. reported a 47% decrease in total company revenue for Q2 2020 compared to the prior-year period, primarily due to the economic downturn resulting from the COVID-19 pandemic. Despite the challenges, the company retained its strong consumer relationship and implemented cost-saving measures to minimize the negative impact on free cash flow.
- Total company revenue declined 47% in Q2 compared to the prior-year period.
- Podcast revenue grew 103% year-over-year in Q2.
- The company had a cash balance of $518 million as of June 30, 2020, and total available liquidity of approximately $868 million on an adjusted basis.
- Total direct operating expense savings in 2020 are expected to be approximately $250 million.
Headline financials
Revenue & EPS history
iHeartMedia · Revenue · Quarterly
$488M
Revenue by segment
iHeartMedia · $887M total across 3 segments · Q1 2026
- Multiplatform Group$493M—55.6%
- Digital Audio Group$327M—36.9%
- Audio & Media Services$66.6M—7.5%
Forward guidance
The company anticipates approximately $50 million of restructuring costs related to achieving our cost savings. Our investments in modernization are expected to deliver annualized run-rate cost savings of approximately $100 million by mid-year 2021, and we expect to achieve approximately 50% of our anticipated run-rate savings in 2020.
Tailwinds
- Modernization initiatives are expected to deliver annualized run-rate cost savings of approximately $100 million by mid-year 2021.
- The Company expects to continue to make key investments in its strategic initiatives related to Smart Audio and Digital, including podcasting.
- The Company also expects that certain provisions of The CARES Act will partially offset the negative impact of COVID-19 on its 2020 free cash flow and is estimating a reduction in tax-related cash payments in 2020 of approximately $100 million.
- no material maintenance covenants
- no material debt maturities prior to 2023
Headwinds
- The challenges that we have faced due to COVID-19 were unprecedented and had a severe, negative impact on our revenue in the second quarter.
- Financial performance in the second quarter was significantly negatively impacted by the economic downturn resulting from the COVID-19 pandemic
- The Company anticipates approximately $50 million of restructuring costs related to achieving our cost savings.
- weak or uncertain global economic conditions
- fluctuations in operating costs
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 18 quarterly earnings reports · overlaid with Q2 2020
-4.5%
Avg return
Earnings day
-5.9%
Avg return
5 days after
-2.2%
Avg return
30 days after
30%
8 / 27 earnings
Positive
+40.2%
Q3 2024
Best reaction
-39.8%
Q1 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2025 | — | — | — | |
| Q1 2026 | -2.8% | -15.8% | -31.5% | |
| Q4 2025 | -5.5% | +4.5% | +1.6% | |
| Q3 2025 | -5.3% | -10.9% | +11.6% | |
| Q1 2025 | -4.0% | -3.9% | +24.0% | |
| Q4 2024 | -15.3% | -27.8% | -21.5% | |
| Q3 2024 | +40.2% | +37.4% | +50.0% | |
| Q2 2024 | -7.0% | -7.0% | +2.8% | |
| Q1 2024 | -39.8% | -41.7% | -42.1% | |
| Q4 2023 | -0.4% | -15.0% | -7.9% | |
| Q3 2023 | -22.7% | -19.2% | +1.9% | |
| Q2 2023 | -20.3% | -24.6% | -21.7% | |
| Q1 2023 | -2.5% | -18.4% | -31.0% | |
| Q4 2022 | -21.4% | -25.2% | -47.4% | |
| Q3 2022 | +2.7% | -7.7% | +0.1% | |
| Q2 2022 | -2.8% | -3.6% | -1.3% | |
| Q1 2022 | -16.8% | -24.9% | -31.5% | |
| Q4 2021 | +0.3% | +7.6% | -3.2% | |
| Q3 2021 | +3.6% | +7.5% | -0.6% | |
| Q2 2021 | -15.5% | -16.2% | -3.5% | |
| Q1 2021 | +13.1% | +12.8% | +17.9% | |
| Q4 2020 | -3.0% | +8.3% | +18.1% | |
| Q3 2020 | +9.6% | +14.2% | +39.5% | |
| Q2 2020 | -6.5% | +12.2% | +7.0% | |
| Q1 2020 | +5.7% | -3.3% | +60.3% | |
| Q4 2019 | -5.1% | -7.6% | -56.4% | |
| Q3 2019 | +2.2% | +10.5% | -1.6% | |
| Q2 2019 | -1.6% | -1.6% | +7.4% | |
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