iHeartMedia Posts Small Q2 Revenue Gain, Beats Guidance

iHeartMedia exceeded its revenue guidance in the second quarter, with revenue rising 0.5% to $934 million, the company announced Monday (Aug. 11). 

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), a common profit metric that strips out the impacts of financing and accounting, rose 3.9% to $156 million, a result that was at the high end of guidance. 

Investors reacted positively to the results, pushing iHeartMedia shares up 24.5% to $2.03 on Tuesday (Aug. 12). 

“Our second quarter performance was solid and slightly ahead of our initial expectations as we continue to execute initiatives while navigating a still uncertain macro environment,” CEO Bob Pittman said during the company’s Tuesday (Aug. 12) earnings call. 

At the multi-platform group, which includes iHeartMedia’s core radio broadcasting operations, revenue fell 5% to $545 million, while adjusted EBITDA dropped 8% to $96 million. The digital audio group, which includes iHeartMedia’s fast-growing podcast business, fared better than broadcast, however. Revenue there grew 13% to $324 million, while adjusted EBITDA climbed 17% to $108 million. Podcast revenue alone reached $134 million, up 28%, while non-podcast digital revenue improved 5% to $190 million. 

For the third quarter, iHeartMedia expects a low single-digit revenue decline and adjusted EBITDA of $180 million to $220 million, which represents a year-over-year decline of approximately 5% at the midpoint. That $40 million range of adjusted EBITDA guidance shows “there is still uncertainty in the marketplace,” said Pittman.