iHeartMedia Third Quarter 2022: Revenue Up, But Radio Flat

Digital Up, Radio Not Quite

Radio was flat, digital was up again, and overall revenue rose for iHEARTMEDIA in third quarter 2022, with a 7% year-over-year revenue increase to $989 million, but GAAP operating income fell from $80 million to a loss of $211 million, which includes a $302 million non-cash impairment charge on the company's FCC licenses driven by increased interest rates. Adjusted EBITDA rose 10% to $252 million.

The Multiplatform Group, which includes iHEART's radio properties, was flat at $660 million of revenue, with broadcast radio alone up 0.4% to $485.6 million and networks off 0.5% to $127.2 million, while digital rose 23% to $254 million, including podcast revenue rising 42% to $91 million. The Audio & Media Services Group had a 17.7% revenue increase to $77.8 million.

The company's cash balance sat at $295 million at the end of SEPTEMBER, with total available liquidity of $718 million and net debt of $5.3 billion, with the next material debt maturities coming in 2026. iHEART's guidance for fourth quarter is for a 2-6% increase in revenue, with OCTOBER up 8% due to political revenue.

“We’re pleased to report another quarter of solid operating results for iHEART and our performance in the midst of the current climate of economic uncertainty is a strong indication of the successful transformation this company has undergone in which our high-growth digital revenues comprises 26% of total company revenues,” said Chairman/CEO BOB PITTMAN. “Our Digital Audio Group continues to deliver industry-leading growth, and our Multiplatform Group has again demonstrated its resiliency during a difficult economic environment. We believe the strong positions of both of these groups with both consumers and advertisers give us the ability to both navigate through this period of economic uncertainty and position us for continued growth through the recovery and beyond.”

“This quarter our Adjusted EBITDA of $252 million, and our consolidated revenues, up approximately 7% year over year, were both at the high end of our guidance range -- a solid performance despite the uncertain macroeconomic environment,” said Pres./COO/CFO RICH BRESSLER. “We also continue to keep profitability and Free Cash Flow Generation at the forefront, and despite this uncertain environment, our business has continued to achieve year over year growth in users, revenues, Adjusted EBITDA and Free Cash Flow.”

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