iHeartMedia’s enterprise has been in regular decline for the reason that starting of 2023 however confirmed indicators of enchancment within the second quarter.
Complete income rose 1% to $929 million, barely above the corporate’s steerage, however was up simply 0.1% excluding the influence of political promoting. A spike in bills — particularly working and promoting, normal and administrative — contributed to a 21% decline in adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA).
“We’re seeing sequential enchancment in our income progress,” CEO Bob Pittman mentioned in the course of the earnings name on Thursday (Aug. 8). “Whereas {the marketplace} continues to be dynamic — with a altering outlook on rates of interest, inflation tendencies, world uncertainty and quickly evolving home political panorama — we proceed to see sturdy momentum in our podcast enterprise, our digital ex-podcast enterprise and the sequential enchancment of our multi-platform teams’ 12 months over 12 months income efficiency.”
iHeartMedia’s digital audio section contributed to the corporate’s income uptick. Podcast income improved 8.1% to $104.5 million, properly under the earlier quarter’s progress charges, whereas digital income excluding podcasts rose 10.3% to $181 million. Total, digital audio income climbed 9.5% to $285.6 million.
The multi-platform section fell 3.4% to $575.9 million. Broadcast radio, the corporate’s largest single income, declined 0.9% to $425.5 million. Networks fell 12.8% to $106.6 million. Sponsorship and occasions improved 2.4% to $39.1 million.
Wanting forward, iHeartMedia expects third-quarter income to extend within the mid-single digits, which might be $991 million to $1.01 billion, and adjusted EBITDA to land between $200 million and $220 million, in comparison with $204 million within the prior-year interval. For the complete 12 months, income is anticipated to extend within the mid-single digits, which equates to roughly $3.9 billion to $3.98 billion, and adjusted EBITDA will probably be between $760 million to $800 million, up 9% to fifteen% from 2023.
“As we take a look at the again half of the 12 months, our outcomes will mirror the persevering with optimistic influence on an advert market restoration 12 months materials upside from political promoting, in addition to the good thing about our ongoing concentrate on value efficiencies,” mentioned Pittman.
Whereas iHeartMedia eked out a small enchancment within the second quarter, two different radio corporations that reported earnings within the final week continued their slides. Cumulus Media income fell 2.5% to $205 million as its web loss grew to $27.7 million from $1.1 million within the prior-year quarter. Townsquare Media income fell 2.5% and adjusted EBTDA dropped 8.3%.
