iHeartMedia Fourth Quarter Revenues Boosted By Politics And Podcasting, But Q1 Guidance Predicts Revenue Decrease

Q4 Results, Q1 Guidance

iHEARTMEDIA revenue rose 6% year-over-year for fourth quarter 2022 to $1.126 billion, but increased just 1% excluding political revenue. The revenue figure was boosted by a 10% jump in Digital Audio Group revenue to $30 million, including podcast revenue up 17% to $113 million. The Multiplatform Group, including broadcast radio, increased 0.9% to $733 million. GAAP operating income grew 41% to $173 million, with consolidated Adjusted EBITDA up 7% to $316 million.

The company warned that first quarter consolidated revenue is expected to decrease by approximately mid-single digits, and JANUARY's revenue was down 1%. Consolidated Adjusted EBITDA is projected to be $80-90 million.

Chairman/CEO BOB PITTMAN said, “We are pleased to report another quarter of solid operating results for iHEART in consumer usage, revenue, and earnings growth. The fourth quarter was our best quarter for Revenue and Adjusted EBITDA -- and on a full year basis, in 2022 we generated the highest revenue and the second highest Adjusted EBITDA and Free Cash Flow year in iHEART’s history. Even in this continuing challenging and uncertain economic environment, we continue to make strong progress in our transformation of iHeart into a true multiplatform audio company -- driven by innovation, supported by data and technology, and powered by the largest sales force in audio -- and we are positioning iHeart to take advantage of the coming economic recovery.”

Pres./COO/CFO RICH BRESSLER said, “We had a solid quarter despite the increasingly challenging macroeconomic environment, with our consolidated revenues up approximately 6% year-over-year at the high end of our guidance range and our fourth quarter Adjusted EBITDA of $316 million at the middle of our guidance range. iHEART has unparalleled assets that have proven their resiliency through economic downturns like this one, and as we navigate these uncertain economic conditions, we remain committed to driving shareholder value through our rigorous allocation of capital, identifying additional cost savings opportunities, utilizing new technologies to expand our product offerings, and improving our operational efficiency, and we believe the strength of our assets will become even more apparent as the economic environment and the advertising sector recovers.”

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