NASDAQ$IHRT

iHeartMedia Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

iHeartMedia's Q3 2023 results were reported, with revenue slightly better than guidance, and digital audio group showing growth.

iHeartMedia, Inc. reported Q3 2023 consolidated revenue of $953 million, a decrease of 3.6% year-over-year. Excluding political revenue, revenue decreased by 1%. The company's GAAP Operating income was $69 million, compared to an operating loss of $211 million in Q3 2022. Adjusted EBITDA was $204 million, compared to $252 million in Q3 2022. The Digital Audio Group saw revenue increase by 5%, while the Multiplatform Group's revenue decreased by 5%.

  • Consolidated revenue decreased by 3.6% to $953 million; excluding political revenue, the decrease was 1%.
  • GAAP Operating income was $69 million, a significant improvement from the $211 million operating loss in Q3 2022 which included a $302 million non-cash impairment charge.
  • Digital Audio Group revenue increased by 5% to $267 million, driven by a 13% increase in podcast revenue.
  • The company repurchased $89 million in principal balance of senior unsecured notes for $65 million in cash, expecting to generate approximately $7 million in annualized interest savings.

Headline financials

Total Revenue

$953M

Previous: $989M-3.6%
EPS (adj)

-$0.06

Previous: $0.21-128.6%
Capital Expenditures

-$90.5M

Previous: -$40.4M-124.1%
Free Cash Flow

-$31.5M

Previous: $166M-118.9%
Net Income

-$9.05M

Previous: -$310M+97.1%
Operating Income

$69M

Previous: -$211M+132.7%
Gross Profit

$573M

Previous: $617M-7.2%
Cash & Equivalents

$213M

Previous: $295M-27.7%
Total Assets

$6.88B

Previous: $8.33B-17.4%
Stock-Based Comp

$7.73M

Previous: $10.4M-25.9%

Revenue & EPS history

iHeartMedia · Revenue · Quarterly

$953M

Q3 2023-3.6%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

iHeartMedia · $887M total across 3 segments · Q1 2026

  • Multiplatform Group
    $493M
  • Digital Audio Group
    $327M
  • Audio & Media Services
    $66.6M

Forward guidance

iHeartMedia anticipates Q4 Consolidated Revenue to decline in the high-single digits, but excluding political impact, the decline is expected to be in the low-single digits. Consolidated Adjusted EBITDA is projected to be between $205 million and $215 million.

Tailwinds

  • Sequential quarterly improvement for both the Digital Audio Group and the Multiplatform Group.
  • Resume growth in terms of revenue and profitability as the advertising ecosystem continues to improve.
  • Record political advertising year expected in 2024.
  • Long term target of approximately 4x Net Debt to Adjusted EBITDA (net leverage).

Headwinds

  • Lingering uncertainty in the advertising market driven by the current global geopolitical situation.
  • Q4 Consolidated Revenue expected to decline in the high-single digits.
  • October Consolidated Revenue down approximately 8%.
  • Inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliations

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-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

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
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%
Q1 2019
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Q4 2018
Q3 2018
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Q4 2009
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Q3 2010
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Q4 2010
Q2 2010
Q1 2010

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