NEW YORK — The second quarter 2023 revenue from the nation’s top owner of broadcast radio stations fell by 3.6% year-over-year. However, that is slightly better than the guidance range of down mid-single digits, iHeartMedia points out. The Digital Audio Group revenue was up 3% in Q2. But, Multiplatform Group Revenue slumped by 6%.
“We are pleased to report that our second quarter 2023 results reflected Adjusted EBITDA slightly above the midpoint of the guidance range, and more than double the Adjusted EBITDA we generated in the first quarter, and our consolidated revenue were above the guidance range,” said iHeartMedia Chairman/CEO Bob Pittman. “The continued positive performance of our Digital Audio Group, led by our Podcasting business, and the significantly improved relative performance of our Multiplatform Group during this soft advertising period, are encouraging metrics for us, and we’re seeing indications of improving macroeconomic trends which we expect to have a positive impact for us in the second half of the year, with most of that impact in Q4.”
COO and CFO Rich Bressler added, “We continue to see macroeconomic improvements in the advertising marketplace and believe they are an indication that our Multiplatform revenues will continue their quarterly sequential improvement and that our Digital Audio Group revenues will continue to grow in the second half of 2023. These improving trends, in combination with our performance in the first and second quarters relative to guidance, along with a presidential election ahead that should generate record political advertising dollars. gives us confidence that if this advertising marketplace recovery continues, we expect to have a strong 2024 with a resumption of our growth story in terms of revenue, profitability and Free Cash Flow generation.”
Q2 2023 Consolidated Results
Q2 Revenue of $920 million, down 3.6%; slightly better than the guidance range of down mid-single digits
Excluding Q2 Political Revenue, Q2 Revenue down 1.8%
GAAP Operating loss of $897 million vs. GAAP Operating income of $83 million in Q2 2022, which includes $961 million of non-cash intangible impairment charges
Non-cash intangible impairment charges were recorded in Q2 2023 primarily driven by the current debt and equity valuations in the marketplace
Consolidated Adjusted EBITDA of $191 million, within guidance range of $180 million to $200 million, compared to $237 million in Q2 2022 and more than double Q1 2023 Adjusted EBITDA
Cash Flows from operating activities of $57 million
Free Cash Flow of $34 million, Free Cash Flow including net proceeds from real estate sales was $39 million
Q2 2023 Digital Audio Group Results
Digital Audio Group Revenue of $261 million up 3%
Podcast Revenue of $97 million up 13%
Digital Revenue excluding Podcast of $164 million down 2%
Segment Adjusted EBITDA of $85 million up 7%
Digital Audio Group Adjusted EBITDA margin of 32.4%
Q2 2023 Multiplatform Group Results
Multiplatform Group Revenue of $596 million down 6%
Segment Adjusted EBITDA of $162 million down 17%
Multiplatform Group Adjusted EBITDA margin of 27.3%
Continued Proactive Capital Structure Improvement Through Debt Paydown
Cash balance and total available liquidity2 of $165 million and $585 million, respectively, as of June 30, 2023
Repurchased $80 million in principal balance of 8.375% Senior Unsecured Notes (at a discount to par) for $57 million in cash; expected to generate approximately $7 million of annualized interest savings
As of June 30, 2023, since Q2 2022 combined Notes repurchases of $430 million at a discount to par for $372 million cash; in aggregate expected to generate approximately $40 million of annualized interest savings
Cumulative reduction of the outstanding principal balance of these Notes from $1.45 billion as of March 31, 2022 to approximately $1 billion as of June 30, 2023.
Guidance
