iHeartMedia, Inc. (IHRT) Bundle
A Brief History of iHeartMedia, Inc.
iHeartMedia, Inc., a leading global media and entertainment company, has evolved significantly since its inception. As of 2024, the company operates through various segments, including the Multiplatform Group, Digital Audio Group, and Audio & Media Services Group.
Financial Performance Overview
As of September 30, 2024, iHeartMedia reported substantial financial metrics that reflect its operational performance:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $1,008,133,000 | $952,989,000 | $2,736,263,000 | $2,684,242,000 |
| Operating Income | $76,720,000 | $68,965,000 | ($867,655,000) | ($877,091,000) |
| Net Loss | ($41,325,000) | ($8,969,000) | ($1,041,422,000) | ($1,114,314,000) |
| Free Cash Flow | $73,345,000 | $67,651,000 | ($1,957,000) | ($31,498,000) |
Debt and Liquidity Management
As of September 30, 2024, iHeartMedia's long-term debt consisted of the following:
| Debt Type | Amount (in thousands) | Maturity |
|---|---|---|
| Term Loan Facility | $1,864,032 | 2026 |
| Incremental Term Loan Facility | $401,220 | 2026 |
| 6.375% Senior Secured Notes | $800,000 | 2026 |
| 5.25% Senior Secured Notes | $750,000 | 2027 |
The company reported cash and cash equivalents of $431.8 million, with total available liquidity of $858.1 million as of the same date. This liquidity is crucial for meeting operational needs and managing financial obligations.
Goodwill and Impairment Charges
As of September 30, 2024, iHeartMedia recorded significant impairment charges, reflecting economic conditions impacting its valuation:
| Goodwill Segment | Balance (in thousands) | Impairment Charges (in thousands) |
|---|---|---|
| Multiplatform Group | $731,501 | $608,958 |
| Digital Audio Group | $311,353 | $0 |
| Audio & Media Services Group | $62,493 | $7,127 |
Market Trends and Operational Challenges
iHeartMedia has faced various challenges, including a decline in broadcast radio revenues, which saw a decrease of 1.4% in Q3 2024 compared to Q3 2023. However, its Digital Audio Group reported growth, highlighting a shift in consumer preferences towards digital platforms.
Despite these challenges, iHeartMedia continues to leverage its extensive media portfolio, including strategic partnerships and digital innovations, to enhance its market position.
A Who Owns iHeartMedia, Inc. (IHRT)
Ownership Structure
As of 2024, iHeartMedia, Inc. (IHRT) has a complex ownership structure, primarily consisting of Class A and Class B common stock, along with special warrants. The total number of shares issued and outstanding for Class A and Class B common stock as of September 30, 2024, is detailed below:
| Type of Stock | Shares Issued | Outstanding Shares |
|---|---|---|
| Class A Common Stock | 127,344,725 | 127,344,725 |
| Class B Common Stock | 21,285,914 | 21,285,914 |
| Special Warrants | 5,039,323 | 5,039,323 |
Major Shareholders
The ownership of iHeartMedia is significantly influenced by its major shareholders. The following table summarizes the largest shareholders based on the latest data available:
| Shareholder | Shareholding Type | Percentage Ownership |
|---|---|---|
| Liberty Media Corporation | Class A Common Stock | Approximately 30% |
| Winton Group, LLC | Class A Common Stock | Approximately 5% |
| Vanguard Group Inc. | Class A Common Stock | Approximately 4% |
| BlackRock, Inc. | Class A Common Stock | Approximately 3% |
| Other Institutional Investors | Various | Approximately 20% |
Financial Overview
The financial performance of iHeartMedia reflects its ownership structure. As of September 30, 2024, the following financial metrics were reported:
| Metric | Value (in thousands) |
|---|---|
| Total Revenue | $2,736,263 |
| Net Loss | $(1,041,431) |
| Operating Income | $76,720 |
| Cash and Cash Equivalents | $431,800 |
| Total Liabilities | $5,779,010 |
Debt Structure
iHeartMedia's debt structure is a significant aspect of its financial health. As of September 30, 2024, the following details are noted:
| Debt Type | Outstanding Amount (in thousands) | Maturity Date |
|---|---|---|
| Term Loan Facility | $1,864,032 | 2026 |
| 6.375% Senior Secured Notes | $800,000 | 2026 |
| 5.25% Senior Secured Notes | $750,000 | 2027 |
| Incremental Term Loan Facility | $401,220 | 2026 |
Recent Developments
In 2024, iHeartMedia recorded a significant gain from the sale of its investment in Broadcast Music, Inc. (BMI), amounting to $101.4 million, which positively impacted its financial results. However, the company also faced substantial impairment charges of $922.1 million due to economic uncertainties affecting its revenue streams.
The ownership dynamics and financial metrics illustrate the challenges and opportunities faced by iHeartMedia, Inc. in the evolving media landscape. The company's ability to manage its debt while navigating market fluctuations will be critical to its long-term viability.
iHeartMedia, Inc. (IHRT) Mission Statement
Mission Statement Overview
iHeartMedia, Inc. focuses on providing a comprehensive range of media and entertainment services. The mission emphasizes the importance of connecting listeners with quality content while fostering innovation in the digital audio space.
Core Values
- Audience Engagement: Delivering engaging audio content to enhance listener experience.
- Innovation: Embracing new technologies to expand digital audio offerings.
- Community Connection: Supporting local communities through events and programming.
Financial Performance Metrics
As of September 30, 2024, iHeartMedia reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $1,008.1 million | $952.9 million | 5.8% |
| Operating Income | $76.7 million | $69.0 million | 10.0% |
| Net Loss | $(41.3) million | $(9.0) million | ≥ 100% |
| Adjusted EBITDA | $204.6 million | $203.8 million | 0.4% |
| Free Cash Flow | $73.3 million | $67.7 million | 8.3% |
Revenue Breakdown
The revenue streams for the nine months ended September 30, 2024, are as follows:
| Segment | Revenue (in thousands) |
|---|---|
| Broadcast Radio | $1,233,636 |
| Networks | $323,952 |
| Sponsorship and Events | $117,279 |
| Digital (excluding Podcast) | $512,884 |
| Podcast | $309,190 |
| Audio & Media Services | $225,275 |
| Other | $13,503 |
| Total Revenue | $2,736,263 |
Strategic Initiatives
iHeartMedia’s strategic initiatives include:
- Expanding its digital audio footprint through innovative advertising solutions.
- Enhancing community engagement by hosting local events and initiatives.
- Optimizing operational efficiencies to improve profitability amidst economic challenges.
Debt and Liquidity Position
As of September 30, 2024, iHeartMedia's debt position is as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loan Facility due 2026 | $1,864,032 |
| Incremental Term Loan Facility due 2026 | $401,220 |
| 6.375% Senior Secured Notes due 2026 | $800,000 |
| 5.25% Senior Secured Notes due 2027 | $750,000 |
| Total Debt | $5,221,847 |
| Less: Cash and cash equivalents | $(431,764) |
| Net Debt | $4,790,083 |
Conclusion on Mission Alignment
iHeartMedia remains committed to its mission by focusing on enhancing listener experiences, driving innovation in digital audio, and maintaining financial stability while navigating market challenges.
How iHeartMedia, Inc. (IHRT) Works
Business Overview
iHeartMedia, Inc. operates as a leading audio and media services company, primarily focused on broadcasting and digital audio platforms. The company is structured into three main segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group.
Financial Performance
As of September 30, 2024, iHeartMedia reported the following consolidated financial results:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $1,008,133 | $952,989 | $2,736,263 | $2,684,242 |
| Operating Income (Loss) | $76,720 | $68,965 | $(867,655) | $(877,091) |
| Net Loss | $(41,325) | $(8,969) | $(1,041,422) | $(1,114,314) |
| Adjusted EBITDA | $204,585 | $203,782 | $459,409 | $488,386 |
Revenue Streams
The following table outlines the revenue streams for iHeartMedia during the three and nine months ended September 30, 2024, compared to the same periods in 2023:
| Revenue Source | Q3 2024 ($000) | Q3 2023 ($000) | 9M 2024 ($000) | 9M 2023 ($000) |
|---|---|---|---|---|
| Broadcast Radio | $448,808 | $455,103 | $1,233,636 | $1,267,493 |
| Networks | $115,310 | $116,334 | $323,952 | $346,456 |
| Sponsorship and Events | $50,329 | $49,500 | $117,279 | $120,297 |
| Digital, excluding Podcast | $186,996 | $164,559 | $516,433 | $475,291 |
| Podcast | $114,045 | $102,663 | $309,190 | $276,181 |
| Audio & Media Services | $90,050 | $61,979 | $229,300 | $189,134 |
| Total Revenue | $1,008,133 | $952,989 | $2,736,263 | $2,684,242 |
Operating Expenses
iHeartMedia's operating expenses for the three and nine months ended September 30, 2024, are detailed below:
| Expense Type | Q3 2024 ($000) | Q3 2023 ($000) | 9M 2024 ($000) | 9M 2023 ($000) |
|---|---|---|---|---|
| Direct Operating Expenses | $409,745 | $379,997 | $1,133,154 | $1,079,678 |
| SG&A Expenses | $418,833 | $393,628 | $1,235,591 | $1,190,202 |
| Depreciation and Amortization | $101,331 | $106,451 | $310,849 | $323,028 |
| Impairment Charges | $412 | $570 | $922,144 | $965,087 |
| Other Operating Expenses | $1,092 | $3,378 | $2,180 | $3,338 |
| Total Operating Expenses | $1,008,133 | $952,989 | $2,736,263 | $2,684,242 |
Debt and Liquidity
As of September 30, 2024, iHeartMedia's long-term debt consisted of:
| Debt Type | Amount ($000) |
|---|---|
| Term Loan Facility due 2026 | $1,864,032 |
| Incremental Term Loan Facility due 2026 | $401,220 |
| 6.375% Senior Secured Notes due 2026 | $800,000 |
| 5.25% Senior Secured Notes due 2027 | $750,000 |
| Total Long-term Debt | $3,815,252 |
Cash and cash equivalents as of September 30, 2024, stood at $431.8 million, providing substantial liquidity to support ongoing operations and strategic initiatives.
Market Conditions and Future Outlook
iHeartMedia's performance in 2024 has been influenced by various market conditions, including an increase in digital advertising demand and higher political revenue due to the presidential election cycle. However, broadcast advertising has shown signs of decline, reflecting uncertain market conditions.
How iHeartMedia, Inc. (IHRT) Makes Money
Revenue Streams
iHeartMedia generates revenue through multiple channels, primarily categorized into three main segments: the Multiplatform Group, the Digital Audio Group, and the Audio & Media Services Group. The following table illustrates the revenue breakdown for the nine months ended September 30, 2024:
| Segment | Revenue (in thousands) |
|---|---|
| Multiplatform Group | $1,688,914 |
| Digital Audio Group | $825,623 |
| Audio & Media Services Group | $229,300 |
| Eliminations | ($7,574) |
| Total Revenue | $2,736,263 |
Multiplatform Group Revenue
The Multiplatform Group primarily earns revenue through:
- Broadcast Radio: $1,233,636, a decrease of 2.7% compared to the previous year.
- Networks: $323,952, down 6.5% year-over-year.
- Sponsorship and Events: $117,279, a slight decrease of 2.5% year-over-year.
- Other Revenue: $14,047, down 17.8% year-over-year.
Digital Audio Group Revenue
This segment has shown strong growth, with a total revenue of $825,623 for the nine months ended September 30, 2024, reflecting a 9.9% increase year-over-year. Key components include:
- Digital Advertising (excluding Podcasts): $516,433, an increase of 8.7% year-over-year.
- Podcast Revenue: $309,190, up 12.0% year-over-year.
Audio & Media Services Group Revenue
The Audio & Media Services Group generated $229,300, representing a 21.2% increase from the previous year, driven by:
- Higher Political Revenue: Due to the presidential election cycle.
- Increased Demand for Digital Advertising.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $2,276,854, with the following breakdown:
| Type of Expense | Amount (in thousands) |
|---|---|
| Direct Operating Expenses | $1,133,154 |
| Selling, General and Administrative Expenses | $1,235,591 |
| Depreciation and Amortization | $310,849 |
| Impairment Charges | $922,144 |
| Other Operating Expenses | $2,180 |
| Total Operating Expenses | $2,276,854 |
Adjusted EBITDA
The company reported an Adjusted EBITDA of $459,409 for the nine months ended September 30, 2024. The breakdown by segment is as follows:
| Segment | Adjusted EBITDA (in thousands) |
|---|---|
| Multiplatform Group | $311,317 |
| Digital Audio Group | $260,003 |
| Audio & Media Services Group | $91,953 |
| Total Adjusted EBITDA | $459,409 |
Net Loss
iHeartMedia reported a net loss of $1,041,422 for the nine months ended September 30, 2024, which represents an improvement from a net loss of $1,114,314 during the same period in 2023. The loss attributable to the company was $1,041,431, reflecting a significant impact from impairment charges and economic conditions affecting overall revenue.
Liquidity and Capital Resources
As of September 30, 2024, iHeartMedia had cash and cash equivalents of $431,800,000, and total available liquidity of $858,100,000, supported by a revolving credit facility of $450,000,000. The company anticipates approximately $85,400,000 in cash interest payments for the remainder of 2024.
Conclusion
iHeartMedia's revenue model is heavily dependent on advertising revenue from various platforms, with significant contributions from digital segments and political advertising. Despite challenges in broadcast revenue, the growth in digital audio and media services indicates a strategic pivot towards more diversified revenue streams.
iHeartMedia, Inc. (IHRT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- iHeartMedia, Inc. (IHRT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of iHeartMedia, Inc. (IHRT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View iHeartMedia, Inc. (IHRT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.