iHeartMedia logoiHeartMedia, Inc. has reported financial results for the quarter and year ended December 31, 2019.

Financial Highlights

  • Solid GAAP revenue performance in Q4 ’19 and FY ’19, flat in the quarter and up 2.0% year-over-year; GAAP revenue excluding political grew 4.3% in Q4 ’19 and 4.2% in FY ’19
  • Q4’19 and FY 2019 GAAP earnings year-over-year comparisons highly affected by one-time items related to bankruptcy and emergence (completed in May 2019), resulting in a decrease in Operating income of 36.5% and 26.6%, respectively
  • FY 2019 Adjusted EBITDA1 increased 2.5% year-over-year
  • Key actions initiated since emergence to improve the financial performance of the Company include:
    • The completion of three debt transactions that will reduce annualized run-rate interest expense by ~$40 million2
    • Modernization initiatives that are expected to deliver $100 million run-rate savings by the middle of 2021; expect to achieve approximately 50% of run-rate savings in 2020
  • FY 2020 guidance reflects significant growth in revenues, Adjusted EBITDA1 and Free Cash Flow1, powered by multiple drivers

Full Year 2019

  • Revenue of $3,683.5 million, up 2.0% year-over-year; excluding political revenue1, revenue increased 4.2%, driven by growth across all revenue streams
    • Digital revenue increased 32.2% year-over-year
  • GAAP Operating income of $506.7 million was down from $690.1 million in the year ended December 31, 2018, driven primarily by the impact of fresh start accounting and higher impairment charges
  • Adjusted EBITDA1 of $1,000.7 million, up 2.5% year-over-year
  • Strong cash generation in the fourth quarter resulted in year-end cash balance of $400.3 million

Fourth Quarter

  • Revenue of $1,026.1 million, flat year-over-year, excluding political revenue1, revenue increased 4.3%, driven by growth across all revenue streams
    • Digital revenue increased 33.6% year-over-year
  • GAAP Operating income of $165.1 million was down 36.5% year-over-year, driven primarily by the impact of fresh start accounting
  • Adjusted EBITDA1 of $306.1 million, down (0.6)% year-over-year

“We are extremely proud of all that iHeart and its employees accomplished in 2019. After emerging from Chapter 11 in May with a healthier capital structure and listing on the Nasdaq in July, we continued to execute on our strategic plans to build our strong operating business and drive shareholder value,” said Bob Pittman, Chairman and Chief Executive Officer of iHeartMedia, Inc. “As the number one audio company in the U.S. based on reach, we look forward to expanding our unequaled multi-platform leadership position and leveraging the investments that we have made to modernize our infrastructure and become more efficient, effective and competitive. The audio environment has never been more exciting, and we look forward to leading – and capitalizing on it in 2020 and beyond.”

“Our financial performance in 2019 was underpinned by the reach and resilience of our traditional business, profitable growth in our other platforms including our Digital businesses and proactive improvement of our capital structure,” said Rich Bressler, President, Chief Operating Officer and Chief Financial Officer. “Through our innovation and thought leadership in areas like podcasting and our SmartAudio suite of targeting, analysis and attribution services for advertisers, we are at the forefront of driving the audio revolution. We will continue to work to build long-term shareholder value by maximizing our Free Cash Flow and de-leveraging our balance sheet.”