iHeartMedia, Inc. (Nasdaq: IHRT) today reported financial results for the quarter and year ended December 31, 2024.

Financial Highlights:¹

Completed Debt Exchange Transaction and Cost Efficiency Actions

• Completed previously announced exchange with a group of debt holders representing approximately 92% of the Company’s outstanding term loan and notes (the “Debt Exchange Transaction”); exchanging approximately $4.8 billion of existing debt; extended maturities by three years; kept consolidated annual cash interest essentially flat; and provided debt reduction resulting in the lowest Net Debt in the history of the Company
• Completed modernization cost reduction program expected to generate $200 million of annual cost savings in 2025. Offset by $50 million of anticipated cost increases for 2025, for an expected net cost reduction of $150 million

Q4 2024 Consolidated Results

• Q4 Revenue of $1,118 million, up 4.8% (Excluding Q4 Political Revenue, Q4 Revenue down 1.8%)
• GAAP Operating income of $105 million vs. $80 million in Q4 2023
• Consolidated Adjusted EBITDA of $246 million, compared to $208 million in Q4 2023, up 18.2%
• Cash provided by operating activities of $1 million
• Free Cash Flow of $(24) million included $89 million of Debt Exchange Transaction fees and $46 million of the accrued interest paid for the Debt Exchange Transaction that would have been paid in 2025 under the old debt terms
  • Free Cash Flow excluding the impacts of the Debt Exchange Transaction was $111 million
• Cash balance and total available liquidity²of $260 million and $686 million, respectively, as of December 31, 2024

Q4 2024 Digital Audio Group Results

• Digital Audio Group Revenue of $339 million up 7%
  • Podcast Revenue of $140 million up 6%
  • Digital Revenue excluding Podcast of $199 million up 7%
• Segment Adjusted EBITDA of $119 million up 2%
  • Digital Audio Group Adjusted EBITDA margin of 35.1%

Q4 2024 Multiplatform Group Results

• Multiplatform Group Revenue of $684 million flat
  • Excluding Multiplatform Group Q4 Political Revenue, Multiplatform Group Q4 Revenue down 5%
• Segment Adjusted EBITDA of $150 million up 6%
  • Multiplatform Group Adjusted EBITDA margin of 21.9%

Guidance

• Q1 Consolidated Revenue expected to decline low-single digits
• Q1 Consolidated Adjusted EBITDA³expected to be approximately $100 million to $110 million
• Full Year 2025 Consolidated Revenue expected to be approximately flat in a non-political year
• Full Year 2025 Consolidated Adjusted EBITDA³expected to be approximately $770 million

Full Year 2024 Highlights⁴

• Revenue of $3,855 million, up 3% YoY, flat excluding political
  • Digital Audio Group Revenue up 9%
    • Podcast Revenue up 10%
    • Digital Revenue excluding Podcast up 8%
  • Multiplatform Group Revenue down 3%
    • Excluding Multiplatform Group Political Revenue, Multiplatform Group Revenue down 5%
• GAAP Operating loss of $763 million decreased from GAAP Operating loss of $797 million in the year ended December 31, 2023. 2024 and 2023 included $923 million and $965 million of non-cash impairment charges, respectively, primarily related to our goodwill and indefinite-lived intangible assets balances
• Consolidated Adjusted EBITDA of $706 million, up from $697 million in the year ended December 31, 2023
• Generated Cash Flows from operating activities of $71 million
• Free Cash Flow of $(26) million included $89 million of Debt Exchange Transaction fees and $46 million of the accrued interest paid for the Debt Exchange Transaction that would have been paid in 2025 under the old debt terms
  • Free Cash Flow excluding the impacts of the Debt Exchange Transaction was $109 million

Statement from Senior Management

“Our fourth quarter Adjusted EBITDA of $246 million was up 18.2% vs. prior year, our highest percentage increase in almost three years, and our consolidated revenues were up 4.8% compared to the prior year, demonstrating the inherent operating leverage in this business,” said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. “We are pleased that we successfully completed the comprehensive exchange transaction discussed last quarter — extending the majority of our debt maturities by three years; keeping our consolidated annual cash interest expense essentially flat; and providing overall debt reduction. This provides the company with the flexibility to remain focused on creating shareholder value in 2025 and beyond.”

“In the fourth quarter, the Digital Audio Group’s revenues were $339 million, and the Digital Audio Group’s Adjusted EBITDA was $119 million, up 2.1% year-over-year. The Multiplatform Group’s revenues were $684 million, flat compared to prior year, and Adjusted EBITDA was $150 million, up 5.9% from $142 million in the prior-year quarter,” said Rich Bressler, President, COO and CFO of iHeartMedia, Inc. “At quarter end, we had the lowest Net Debt position in the history of our company, approximately $4.52 billion of Net Debt outstanding. Our total liquidity was $686 million at quarter end, which includes a cash balance of $260 million. Our quarter ending Net Debt to Adjusted EBITDA ratio was 6.4-times, and we expect to end the year at approximately 5.5-times — remaining on track to achieve our goal of achieving 3.2-times by the end of 2028.”

Consolidated Results of Operations

Fourth Quarter 2024 Consolidated Results

Our consolidated revenue increased $51.5 million, or 4.8%, during the three months ended December 31, 2024 compared to the same period of 2023 primarily due to increases in political revenue as 2024 was a presidential election year and digital revenues for our Digital Audio Group and Audio & Media Services segments. Digital Audio revenue increased $21.2 million, or 6.7%, driven primarily by continuing increases in demand for digital advertising. Multiplatform revenue was flat year-over-year, due to an increase in political revenues, offset by a decrease in broadcast advertising due to continued uncertain market conditions and a decrease in non-cash trade revenues. Audio & Media Services revenue increased $30.2 million, or 44.7%, primarily as a result of higher political revenue as well as an increase in digital revenue.

Consolidated direct operating expenses increased $41.2 million, or 9.9%, during the three months ended December 31, 2024 compared to the same period of 2023. The increase was primarily driven by higher variable content costs, including higher third-party digital costs and podcast profit sharing expenses related to the increase in digital revenues, an increase in music license fees, and an increase in certain costs incurred in connection with executing our cost savings initiatives.

Consolidated Selling, General & Administrative (“SG&A”) expenses decreased $7.9 million, or 1.7%, during the three months ended December 31, 2024 compared to the same period of 2023. The decrease was driven primarily by a decrease in employee compensation, including lower bonus expense, and lower trade expense due to the earlier promotion schedule for the 2024 iHeartRadio Music Festival compared to the 2023 iHeartRadio Music Festival, partially offset by an increase in certain costs incurred in connection with executing on our cost savings initiatives.

Our consolidated GAAP Operating income was $104.5 million compared to $79.8 million in the fourth quarter of 2023.

Adjusted EBITDA increased to $246.2 million compared to $208.2 million in the prior-year period.

Cash provided by operating activities was $1.2 million, compared to $154.1 million in the prior year period primarily due to the decrease in broadcast revenue and costs incurred related to the Debt Exchange Transaction including $89.0 million of debt exchange fees and $46.3 million of accrued interest related to the Debt Exchange Transaction that would have been paid in 2025 under the old debt terms, partially offset by an increase in political revenues. Free Cash Flow was $(24.2) million, compared to $141.9 million in the prior year period. Excluding the impact of the costs incurred related to the Debt Exchange Transaction, our Adjusted Free Cash Flow was $111.1 million for the three months ended December 31, 2024.

Business Segments: Results of Operations

Fourth Quarter 2024 Multiplatform Group Results

(In thousands)	Three Months Ended December 31,								%			Year Ended December 31,								%
		2024				2023			Change				2024				2023			Change
Revenue	$	683,995			$	684,028			—	%		$	2,372,909			$	2,435,368			(2.6	)%
Operating expenses1		534,046				542,493			(1.6	)%			1,911,643				1,881,934			1.6	%
Segment Adjusted EBITDA	$	149,949			$	141,535			5.9	%		$	461,266			$	553,434			(16.7	)%
Segment Adjusted EBITDA margin		21.9	%			20.7	%						19.4	%			22.7	%
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses.

Revenue from our Multiplatform Group was flat YoY, due to an increase in political revenues as 2024 was a presidential election year, offset by a decrease in broadcast advertising in connection with continued uncertain market conditions. Broadcast revenue grew $8.6 million, or 1.8% YoY, driven by an increase in political advertising, partially offset by lower spot revenue and non-cash trade revenue related to the earlier promotion schedule for the 2024 iHeartRadio Music Festival compared to the 2023 iHeartRadio Music Festival. Networks decreased $6.6 million, or 5.6% YoY. Revenue from Sponsorship and Events decreased $1.0 million, or 1.5% YoY.

Operating expenses decreased $8.4 million, or 1.6% YoY, driven primarily by lower bonus expense based on results and lower non-cash trade expense related to the 2024 iHeartRadio Music Festival, partially offset by an increase in broadcast music license fees.

Segment Adjusted EBITDA Margin increased YoY to 21.9% from 20.7%.

Fourth Quarter 2024 Digital Audio Group Results

(In thousands)	Three Months Ended December 31,								%			Year Ended December 31,								%
		2024				2023			Change				2024				2023			Change
Revenue	$	338,892			$	317,695			6.7	%		$	1,164,515			$	1,069,167			8.9	%
Operating expenses1		219,955				201,184			9.3	%			785,575				720,298			9.1	%
Segment Adjusted EBITDA	$	118,937			$	116,511			2.1	%		$	378,940			$	348,869			8.6	%
Segment Adjusted EBITDA margin		35.1	%			36.7	%						32.5	%			32.6	%
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses.

Revenue from our Digital Audio Group increased $21.2 million, or 6.7% YoY, driven by Digital, excluding Podcast revenue, which grew $13.3 million, or 7.2% YoY, to $199.3 million, driven by an increase in demand for digital advertising, and Podcast revenue, which increased $7.9 million, or 6.0% YoY, to $139.6 million, driven primarily by continued increases in demand for podcasting from advertisers.

Operating expenses increased $18.8 million, or 9.3% YoY, primarily driven by higher variable content costs, including higher third-party digital costs and podcast profit sharing costs related to the increase in revenues.

Segment Adjusted EBITDA Margin decreased YoY to 35.1% from 36.7%.

Fourth Quarter 2024 Audio & Media Services Group Results

(In thousands)	Three Months Ended December 31,								%			Year Ended December 31,								%
		2024				2023			Change				2024				2023			Change
Revenue	$	97,755			$	67,568			44.7	%		$	327,055			$	256,702			27.4	%
Operating expenses1		49,034				46,926			4.5	%			186,381				185,241			0.6	%
Segment Adjusted EBITDA	$	48,721			$	20,642			136.0	%		$	140,674			$	71,461			96.9	%
Segment Adjusted EBITDA margin		49.8	%			30.5	%						43.0	%			27.8	%
1 Operating expenses consist of Direct operating expenses and SG&A expenses, excluding Restructuring expenses.

Revenue from our Audio & Media Services Group increased $30.2 million, or 44.7% YoY, primarily due to higher political revenue as 2024 was a presidential election year and increased demand for digital advertising.

Operating expenses increased $2.1 million, or 4.5% YoY, primarily driven by higher bonus expense based on results, partially offset by lower employee compensation in connection with our cost savings initiatives.

Segment Adjusted EBITDA Margin increased YoY to 49.8% from 30.5%.

GAAP and Non-GAAP Measures: Consolidated

(In thousands)	Three Months Ended December 31,							Year Ended December 31,
	2024				2023			2024				2023
Revenue1	$	1,118,269			$	1,066,783		$	3,854,532			$	3,751,025
Operating income (loss)		104,547				79,780			(763,108	)			(797,311	)
Adjusted EBITDA1		246,208				208,210			705,617				696,598
Net income (loss)		31,928				13,975			(1,009,494	)			(1,100,339	)
Cash provided by operating activities2		1,212				154,104			71,429				213,062
Free cash flow1		(24,208	)			141,890			(26,165	)			110,392
Free cash flow excluding the impacts of the Debt Exchange Transaction1,3		111,083				141,890			109,126				110,392

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1.		*See the end of this press release for reconciliations of (i) Adjusted EBITDA to Operating income (loss), (ii) Adjusted EBITDA to Net income (loss), (iii) Free Cash Flow to Cash provided by operating activities, (iv) Free Cash Flow excluding the impacts of the Debt Exchange Transaction to Cash provided by operating activities (v) revenue, excluding political advertising revenue, to revenue, and (vi) Net Debt to Total Debt. See also the definitions of Adjusted EBITDA, Free Cash Flow, Free Cash Flow excluding the impacts of the Debt Exchange Transaction, Adjusted EBITDA margin, and Net Debt under the Supplemental Disclosure Regarding Non-GAAP Financial Information section in this release.
2.		We made cash interest payments of $125.6 million in the three months ended December 31, 2024, compared to $88.5 million in the three months ended December 31, 2023. The increase relates to the cash interest paid due to the Debt Exchange Transaction.
3.		We completed the Debt Exchange Transaction in the fourth quarter of 2024 which resulted in $89 million of Debt Exchange Transaction fees and $46.3 million of cash paid for accrued interest that would have been paid in 2025 under the old debt terms.

Certain prior period amounts have been reclassified to conform to the 2024 presentation of financial information throughout the press release.

Liquidity and Financial Position

As of December 31, 2024, we had $259.6 million of cash on our balance sheet. For the twelve months ended December 31, 2024, cash provided by operating activities was $71.4 million, cash provided by investing activities was $0.5 million and cash used for financing activities was $158.3 million.

Capital expenditures for the twelve months ended December 31, 2024 were $97.6 million compared to $102.7 million in the twelve months ended December 31, 2023. Capital expenditures during the twelve months ended December 31, 2024 decreased primarily due to lower spending on real estate optimization initiatives.

As of December 31, 2024, the Company had $5,071.5 million of total debt and $4,517.9 million of Net Debt. In the fourth quarter of 2024 we closed on the Debt Exchange Transaction which resulted in a $150.5 million partial repayment of debt. The terms of our capital structure include no material maintenance covenants, and as a result of the Debt Exchange Transaction, the maturity dates were extended by 3 years for the majority of our debt.

Cash balance and total available liquidity⁵ were $259.6 million and $685.9 million, respectively, as of December 31, 2024.

Revenue Streams

The tables below present the comparison of our historical revenue streams (including political revenue) for the periods presented:

(In thousands)	Three Months Ended December 31,								%			Year Ended December 31,								%
		2024				2023			Change				2024				2023			Change
Broadcast Radio	$	493,298			$	484,673			1.8	%		$	1,726,934			$	1,752,166			(1.4	)%
Networks		113,260				119,948			(5.6	)%			437,212				466,404			(6.3	)%
Sponsorship and Events		70,065				71,137			(1.5	)%			187,344				191,434			(2.1	)%
Other		7,372				8,270			(10.9	)%			21,419				25,364			(15.6	)%
Multiplatform Group		683,995				684,028			—	%			2,372,909				2,435,368			(2.6	)%
Digital ex. Podcast		199,303				186,028			7.1	%			715,736				661,319			8.2	%
Podcast		139,589				131,667			6.0	%			448,779				407,848			10.0	%
Digital Audio Group		338,892				317,695			6.7	%			1,164,515				1,069,167			8.9	%
Audio & Media Services Group		97,755				67,568			44.7	%			327,055				256,702			27.4	%
Eliminations		(2,373	)			(2,508	)						(9,947	)			(10,212	)
Revenue, total	$	1,118,269			$	1,066,783			4.8	%		$	3,854,532			$	3,751,025			2.8	%