NEW YORK—iHeartMedia, Inc. (NASDAQ:IHRT) reported a revenue decline for the first quarter of 2024. The figures fell short of analyst expectations, sending its stock 12% lower.
The company's revenue for the quarter was $799 million, down 1.5% from the same period last year and below the consensus estimate of $805.21 million.
The decline in revenue was attributed to a decrease in Multiplatform Group revenue, which fell by 7% year-over-year (YoY), primarily due to a reduction in broadcast advertising amid uncertain market conditions and a decrease in trade revenues related to the 2024 iHeartRadio Music Awards. This was partially offset by an increase in political revenues, as 2024 is a presidential election year.
Despite the revenue shortfall, iHeartMedia (NASDAQ:IHRT)'s digital audio group saw a 7% increase in revenue, driven by an 18% surge in podcast revenue, reflecting the growing demand for podcast advertising.
The company's Audio & Media Services Group also reported a 12.7% increase in revenue, largely due to contract termination fees and higher political revenue.
The company's GAAP operating loss improved to $35 million, compared to a loss of $49 million in the first quarter of 2023. Adjusted EBITDA grew to $105 million, within the guidance range of $100 million to $110 million, and up from $93 million in Q1 2023. Free cash flow was negative at $81 million.
Looking ahead, iHeartMedia expects Q2 consolidated revenue to be approximately flat and anticipates adjusted EBITDA to be between $140 million and $160 million. The company remains committed to its long-term target of approximately 4x net debt to adjusted EBITDA.
Bob Pittman, Chairman and CEO of iHeartMedia, Inc., commented on the results, "We’re pleased to report our first quarter of year-over-year Adjusted EBITDA growth in five quarters, driven by the substantial sequential year-over-year improvement in the performance of all our segments."
He added that despite the dynamic marketplace, the company sees meaningful opportunities for growth and remains confident that 2024 will be a recovery year.
The company's proactive capital structure improvement efforts were highlighted by a cash balance and total available liquidity of $361 million and $788 million, respectively, as of March 31, 2024.
The company also noted the sale of its equity interest in BMI in February 2024, which brought in cash proceeds of $101 million.
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