IHRT - Earnings call transcript Q2 2021

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Operator

Good day and thank you for standing by. Welcome to the iHeartMedia Q2 2021 Earnings Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Mike McGuinness, Head of Investor Relations. Please go ahead.

Michael McGuinness

thank our taking call. second and join time everyone, for us quarter afternoon, you the for to Good XXXX earnings

follow me can questions. our release, investor are with CEO; discussion our our prepared along At for press our will of use that Joining and take presentation in management Chairman to your the Bob conclusion an and note remarks. COO that we President, Pittman, Bressler, to have remarks, you and Please CFO. our Rich today's addition

begin, let on we me Before safe quickly harbor Slide cover statements the X.

forward-looking uncertainties During assumptions including financial this call, estimates are we uncertainties will are with COVID-XX in These our subject company's results expectations the operations. risks current make of Actual SEC. these from in expected are could liquidity, on based of discussed and the statements, assumptions, differ impact on and and expectations to and risks results filings and and and. more detail and position the these current materially that

certain our turn measures to in we between non-GAAP and During this in GAAP our now And available refer financial over Reconciliations measures. non-GAAP be presentation on investor earnings will release financial the our the found or call website. I'll can call, Bob. to

Robert Pittman

and earnings Mike, our conference afternoon, joining good XXXX Thanks, everyone. call. quarter second for Thanks

the value Multiplatform of of business. including Audio The and seen throughout focus second our tech value for our strength business Group continued multi-platform is our podcast our quarter in strong plus successful of and Digital the continues investment the highlights strategy the positive and trends That our we've seen our momentum on Group, and in data. ad consumers and advertisers

I in for take XXXX the work financial and them macro companies radio levels the company innovation, commitment serve. who radio government important enabled lead set a to from momentum foundation audio our the strong a sets XXXX. are the we And technologies to our dedication, to behind fortunate to of we've to the to iHeart, iHeart. space audio in our over and in creativity at is and thank space. operate their company, digital-only that of a our believe society and to communities, trends decade podcast special for broadcast the from recovery which the the Unlike the well which that want by I been across new us licensed by highlight of others teams Their moment the broadcast of they've core building we heart together which folks organization, results are are this today, Rich for the team, the working experience what service at very our are full the success. the as in turn has take environment apart in decades stage the of employees also communities relatively Our end us we the future are of the I positive with and the company. an for in has seen in our as for success sector, is announcing out we're and seriously. hard the facet to

which connection enduring and and work environmental, listeners, initiatives from live heart deepens all or with the and in engagement social stems our the promise core companionship. is our and to commitment governance, communities of Our we our at ESG, strong to which and of ties our

our and corporate front, governance Our values communities the including diversity available accomplishments ethical and navigate our social policies initiatives on and our the report, this on high details inclusion, standards. our our ESG justice, and regarding environment, website, helping pandemic,

this we'll be report living reflect in most and update to our to that recent weeks. initiatives, updated the a ESG is efforts coming document report the continually and ESG latest Our is publishing

make of In a moments, quarter I'll better. across few the highlights philanthropic year, broad and this spectrum as world of engine take ecosystem, of overall America's growth number In every to and for initiatives as want America But a the to our performance. addition the our and help which efforts audio we new publish you report, is impact teams company organization, our I position us. a iHeart first, one powerful to the podcast community through highlights which an we, use second document, how review financial

grew last and from even the first investments in across the team and new up the growth from and quarter quarter grew by generate its and grew XXXX, to Group broadcast point in negative management expansion quarter and to in margins and The QX Digital in XX% XXX% largest In margins XX% were We ad with data tech, the the Multiplatform EBITDA increase year-over-year areas able also to Audio and this year. of from million the Rich margins cases COVID margin second QX both Audio continued $XXX year. profit and growth, Group sequential in rest devices. first like QX iHeart country. are in the of from and from were our as the the make adjusted iHeart $XX of since QX XXXX. up revenue monitoring X% the of from in second important in revenue continue of Group our benefit negative recent improving and quarter-over-quarter Our continues million last XXX%. adjusted by XXXX, XX% we XX%, the revenue digital low XX% the radio EBITDA business the by And up XXXX the of Group Multiplatform improvement while quarter Digital our In high XXXX, leverage. podcasting, segments operating were XX%, I improved QX up

lingering delivered adjusted of was compared we the And ourselves with back QX our approximately for second I'll levels has operating our for the is We're based in seen & Multiplatform, the results revenues of setting will back strong XXXX pandemic. EBITDA the Reported Media remain continued driven uncertainty. encouraged how Digital all headwinds So the up we earnings of XXXX what XX%. Audio COVID-XX turn growth. our to And this in business the we to in end the by quarter that, outperformance call we've despite so to without outlook that of up our on provided But performed X not half by the by guidance far, results up XX% we were confident quarter. from be strong Audio in Services. and segments: XXXX,

point with recognition to would free capital the down $X of sequentially QX from X% we cash also XXXX million. second was generated revenues of which, million remarks. well, QX And of QX our quarter. which in of of million in included, to important XXXX real quarter to out as QX This In QX details sequential impact to resulting when X% on by impacted XXXX year-over-year estate the footprint. continued XXXX. against XXXX estate XX% down up XXXX in real increased in quarterly in XXXX. in reflects our provide XXXX most down to XXXX, for to the XXXX down this Rich $XX of asset sales, In from political, revenues when QX trend resulted Excluding and that and fact from XX% impact flow million $XXX EBITDA that proceeds the grew cash the COVID, flow negative our free in cash down second XXXX now compared continued $X will of in flow against QX result optimization we program expenditures revenue XX% quarter, was improvement of of XX% QX adjusted positive it's QX the the down that our his more XX% highlight QX want QX compared to

its business, includes radio Group, every provide its The company iHeart me iHeartMedia our group XXX company America Network radio markets. our National with Group other over also in in and radio our business. than Markets more largest than XXX Networks any media Multiplatform specifics. let with in Now Information organization, Black includes business stations our broadcast alone. our people more Sales America month It BIN: The assets Multiplatform more reaches Events the

points QX see sequentially, #X of continue markets when lead performance in down demographic, broadcast Our QX that And XX of versus of group, to to in largest broadcast the #X the also radio audience more year-over-year QX, level for combined, QX next pleased to were next ranked radio down QX than radio revenues, XX as we're the revenues with and revenues #X radio X Group from compared the its markets company. it XXXX XX markets XXXX. revenues double the XXXX, almost same the That's the top and we're industry, we as the impact We're according stations largest up in companies to that well. basis Nielsen, overall. recovers were continuing XXX XX% improved which to improvement pandemic. Multiplatform XX% COVID-XX with versus XX XX% compared the

and macroeconomic within as revenues Multiplatform the Broadcast to Group, continued individual the Looking the XX% revenue up our streams have at were year-over-year environment recover improves.

SmartAudio, Within the data-infused is programmatic line broadcast platform. our

was the as to up the ad quarter, tech. the radio, stations data SmartAudio and will the fast-growing of TAM and capabilities, as we in Broadcast highlighting technologies of the the value uses data continue rest well XX% broadcast we it inventory And as expect in Although same digital our TAM. radio and new add that as to Multiplatform able Group be second play

compared was Networks prior to XX% up Our year. revenue

TTWN, includes which prior our to Network, prior as well was and business the Networks up year, XX% compared XX% as Total Traffic compared which Our to Weather up year. was Premiere Networks,

Sponsorship be pandemic. and impacted to revenue Events the Our by continues

to Awards, show guidelines, and begun the vaccinated during audience on period. including and was local live live and its broadcast time XXXX live events for in-person XX the with to the iHeartRadio attended TV #X was network audience in XX have we Music However, back Fox a accordance which by bring

event included stations, our events. were of combination resulted Sponsorship radio in also which for return in and Tango, the Pride up both partnered iHeartRadio and year, QX hosted Cancel year-over-year. our with being consecutive P&G we XX% with quarter this events local Wango Event the and virtual second In smaller revenue This Can't by

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their digital #X Digital Xx radio service our podcast includes to as It the million high-profile national newsletters XXX over by Group, Audio of the and users to over largest ad digital and measured iHeartMedia our the move for digital and also Triton. which our digital our high-growth usage services business companies. Omniture, includes and digital and let's next our partners our monthly company, audience industry's a iHeartRadio in programs local unique with with tech commercial radio Now according lead service, and broadcast websites

including position is includes consoles audio followers, over has approximately iHeartRadio XXX Our the a player. XXX larger social which gaming footprint largest well and next on TVs, and than speakers, smart devices fans as and that service a platforms devices, leading as mobile thousands Xx smart million of

Group's we all continued products the to before, across delivered Audio and talked digital innovative we've of was for quarter, in new our products features. quarter, to The full year-over-year which revenues, for digital the on XXX%. our Group year-over-year. despite up revenues, about continue Digital have record Group's XXX% were are and momentum continue were revenues digital included our podcasting these another strong The EBITDA were businesses Digital year. Audio these XXX%, Audio The and their Digital As which and growth up expect and up the calls COVID-XX, up results non-podcasting excellent XXX% we add adjusted

and ecosystem it. I the to Rich results, wanted you take position second the to of finer our you points a quarter Before through moment our about to speak in podcast takes

the stakeholder Each to creators. ecosystem, Within listeners, table the and are needs. primary advertisers podcast there stakeholders: X with comes unique

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success partnerships Jason the to continue NFL with Rhimes, Blum to Will sizes, and celebrity of attracting like creators Ferrell, are major brands we players We new in in continue all to almost from and like Sports Money, develop in Black major Jada have creators NBA talent of part Network. Illustrated, like and and creating our Shonda the commitment shapes And as How our Podcast now XX Pinkett-Smith. the talent space Alaska to the shows that well, Missing Effect and Bloomberg,

with being to of more the that have X the No and need year, audiences have podcast like first their is Know, than decade, that success. success generate. for indication most library We bedrock we in billion to or downloads. Stuff size for after a continue our topic, pass the valuable ever You the year best of grow support them think podcast many creators we that tools established matter also podcasting, audiences over a of hits, podcast published Should we And

Across success shows largest nearest both underlies the feel XX, promote and listens, new able our drive were helping XX audiences, was we are effectively successful to more the industry monthly publisher, podcast we're and the the #X according than the monthly that measurement, in publisher #X XXX top generate Xx global And in largest XXX downloads podcast for and content, most the the engagement X advertisers. of million listeners. unique Podtrac million for podcast the are third-party and and and network. we're more with Podtrac, we shows did nature beginning large podcaster. largest doubling has with ranked larger ranked podcast The success flywheel the only the space, second categories world. the our And more XX at We episodes, next and to audience audiences. commercial we shows X.Xx streams iHeart publisher an U.S. competitor. of have Xx Not million XX which than over least than with podcast our the effect the podcast larger creators more diverse the with it than ranks, the in next to standard to of This new have

Advertisers and we continue growth leverage the data they to build come to of area Moreover, target audience in the podcast they to to can advertisers, the which they need find need podcasting our accretive radio best any they margin tools margin. they For company out do that is continues our with us advertising. even audiences almost space, while highest this be know capable is podcasting into in arena. other know our products, the EBITDA all that that And SmartAudio all to company offerings broadcast This no into we ensuring extend something can and digital well. is other that as our of. those and

media intent to exceptional and has growth make performance company. in management hope podcast our are financial of discipline why a revenue the deliver the unparalleled results we're iHeart ecosystem this with and in about into and and transformation I space. coupled true podcasting I to is healthy both able have the explain margins. the seeing Rich frame the we're helped sure We the multiplatform excited of iHeart tangible rest team the

directly, our well out more both we potential continue will has the resilient business growth capabilities, the of our the into TuneIn has will to In that of we value also platform. stack. Triton, of to growth digital unlock French with Digital and expansion as a we growth as as tech our platform. major Group, Group entry Audio Multiplatform And as a which ad TAM we our tech publishing Digital successful before, and and data unleash mentioned this Audio NRJ, revenues value increase for well have as advertising ad Multiplatform which Critical stable TAM. and some the with Triton expect to are week, We digital it strategic the platforms, success into a with the of our build the announced Group this onto past only broadcaster, partners stack which tech high-growth can we've assets clients. itself not as believe relationships and new and continues has as our expand sign we These into international been like our growing other examples use our deals also as acquisitions

unique develop advertising our consumers platforms, iHeart's As it to across one-of-a-kind and and rest new of our advertising we we and data using continue And over products our growth for to and Rich. opportunities a company, scale the and sectors. analytics like to audio, turn And identify XXXX for beyond. new with drive for and I'd will partners services that that, the innovate

Richard Bressler

Bob. Thanks,

environment, to general the continue well improving trends as our our financial sequential this as improvement both economic We of results performance the continued in see reflecting their improvement, in trends and macroeconomic strong businesses.

consolidated improvement the continued and over against XXXX our their were XX% Our prior revenues period year results. sequential up

So of of on adjusted more cases while ongoing across there we back and that to beyond. XXXX and are in remain levels growth we the the increasing EBITDA cash for confident ourselves the recognize is as be to flow and work country, to free the XXXX, up firmly done end uncertainty adjusted path XXXX a setting COVID be by to continue we result the hard still EBITDA

increased is above of talent XX to driven a drives our revenue, by second on investor period, and on the costs, prior over and by fees license expenses, In provided revenues which third-party related significant increased result guidance performance primarily XX%, Direct increased compensation, XX%, expenses expenses of based quarter cost results, expenses SG&A digital XXXX Variable to we XX%. higher first terms a operating the a was profit performance events lower quarter our from due of which in direct higher increased by employee our initiatives up expenses our primarily increased partially expenses resulting return compensation initiatives approximately The deck, bonus fees. consolidated expenses higher higher our began of result and the also of employee resulting in sharing by financial live commission as modernization XX% basis, turn on you reported reduction of XXXX. higher if operating and we into increase year Slide revenue. increase to royalty variable driven and continued as expenses in music expenses sales compensation events. certain offset call the from

year, last our a did And reminder, the a expenses majority a you'll employees As see corporate vast get increase. of as result, paid not bonus. our

increased the reduction contributed in the debt by offset to COVID-XX the addition, live Trade and primarily digital pandemic a the in headcount the of our return In increases increased, expense. of also partially businesses impact to lower initiatives response These were in increases from taken events. SG&A. expenses of bad as result investments cost

Our the compared million $XX.X EBITDA to negative $XXX.X $XXX.X in of an million to and quarter prior adjusted prior our was compared year was loss operating quarter. million second year income second quarter $XX.X million GAAP operating a quarter, the in

XXX EBITDA points QX basis Multiplatform QX improvement on after the has with in operating margins, back XX% margins basis, additional in QX, I'll segments. significant operating as from return XXXX. of Multiplatform Slide Group of recovers. a XXXX, sequential our color leverage On negative adjusted revenues EBITDA you up our showing the XX% improved If were performance Group to posting provide revenue X, a

which Networks radio our includes the up was are up Broadcast were up XX% our and Multiplatform revenues, Group XX%. Premiere, which which and Within revenues, year-over-year, XX%, were

year-over-year. achieved Event up the were points revenues events. margins year-over-year. XXX% quarter the was and And of Our up success virtual second year-over-year, in-person of Audio EBITDA basis our XX% were by revenues year-over-year, and while Digital The expanding return XXX over and these importantly, continued events reflecting Sponsorship results Group up were adjusted XXX%

Digital Audio grew is XXX% whose our revenues Within the business, podcasting Group year-over-year.

The on year-over-year. revenues Our a performance, Media reported Services non-podcasting revenue & XXX% Group their strong basis. increased XX% growing Audio digital continued

revenues XX, which our On to $X.X had figures XX. expense the do summary segment have Slide positive political, Excluding $XXX in approximately billion of will up term year-over-year. of not or basis. repricing, net a this on of which balance XX% provide adjusted this voluntary debt our quarter on At reflect concurrent impact includes end, include outstanding, the prepayment prepayment the These were interest of impact loan there debt a we on $XXX of a We is debt. of a cash million. Slide a million go-forward our schedule

there reminder, and debt terms material material no XXXX. to As the no of our structure a are covenants, debt maturities prior include maintenance

that second negative to with on QX improvement path the announced free Xx. XXXX, generated second target cash see confident ending After committed of also at significant are you We net XX.Xx the X.Xx, end why of a leverage can quarter, target remain we achieving we leverage we from are achieving quarter In $X Xx. our of the million previously that a towards flow. of of the just

As have as footage project, XX%. approximately employees and our to expenditures announced be our and as The of better to this by to such our the the estate and redundant, and $X capital approximately spaces in has At program Bob expect into will be leverage assets would to adopt more partially estate capital been related previously, our mentioned conclusion certain savings company initiatives. real primarily to due company-wide Taking quarter effort in those expenditures. efficient practices sell second proceeds the new of best our for expenses offset occupied help reduce higher the rent flows is This cost elevated assets our of estate enabling well real the office succeeded our cash footprint, streamlining technologies previously initiative's deliver results. real a QX, part proactive making this account, program make year square million. to new will we gross order in

execute our initiatives. previously against announced successfully We savings to continue

rapidly saw and achieved we and recover, of remain this in second up initiatives were we Multiplatform in negative QX XXXX. rate transform XXXX Consolidated majority replicate XX% mid-XXXX, in XX%, and the $XXX $XXX way million XX% XXXX. monetization post-COVID the were have from expansion us business X,XXX a from on points XXXX these as we pandemic continues forced in the quarter. activity do XXXX. to well changes. negative imagined, our X,XXX to QX from positioned run from quickly were benefit up track XX% announced we XXXX we us basis taken than XXX Audio continue the up adapting from occur The leave and a margins from in Digital advertising and XXXX. more and The in basis basis QX Group XX% up points up in in we million up to a points margin savings margins actions X% X% margins could by XX%, QX QX pre-COVID in previously from XX%, experience to QX to for Our have Group

the ahead with look I rest the of we XXXX, As provide you to following. want to

year. July were approximately to compared approximately And XX% quarter, for consolidated we revenue prior third XX% be revenues year-over-year. Our the the up to up expect

to We increasing of impact COVID our each the of markets. are monitoring cases actively

back current QX too deviation QX While indicate haven't would to to in anything expectations a XXXX. we'll early our our things pacing EBITDA end believe believe or still our it from levels by XXXX seen be XXXX. is note on results we adjusted free forecast few That And in we longer-term for trends we a uncertainty. cash being yet that to the flow given trajectory, our this of said,

to million. And $XXX Interest taxable will estate meaningful the offset $XXX We XXXX terms to our savings, expenditures, in in XXXX. we carryforwards levels will will cash not then be real be be to to $XXX on approximately expense that operating to return due a working due $XXX income. NOL CapEx significant reductions capital million utilize and are normal million to in we million to will of taxpayer drive

recovery, of business to of recovery, like committed as environment. we during we'll time. communities made now XXXX so in our from progress forward the be areas improved And we'd our business' gradual We resiliency benefiting first operator to continue you end the cost again, quarter to We our by of XXXX X.X employees. levels turns the end appreciate it to thank fact strict continuation make remain listeners, to evidenced continuing our and our our of macroeconomic the look by and over significant and the improvements our the we deleveraging steady to XXXX. leverage the discipline, high-growth by back that with expectation far, EBITDA adjusted activities a second serving will the our We the challenging since Thank your questions. our take We joining earnings to we you. partners And call. to quarter turn this the our

Operator

Instructions]. [Operator

Reif Jessica Ehrlich Securities. Our is BofA from first question with

Jessica Reif Ehrlich

fast. I questions. you Bob, went guess, so Three

opportunities hot is the in sort you great. -- through the I still and some there was category, here revenue Are the suite acquisitions, from mean, So of still on -- but an your opportunities advance. you your for how for I'm and really and so your audio are kind strengths, there a monetization you suite this, you us touched you anything, your of saying of I what kind really of great. made mean you've But Can that. on was opportunities that better competition kind phenomenal. then quarter, and are differs -- just on of it second, product that's question, for of suite have with but advertising apologize I advertising services are So through numbers And -- went from Triton? have now may not walk how here?

out you which parse from kind can about expenses national operating us up versus But for say you like starts you on to have operating as thank and here? expenses Rich, to go can you. local outlook? trajectory Can any guidance gave of comments on open that, give And the whatever then versus So everything pricing sellout, -- up. obviously revenue, you

Robert Pittman

Sure.

Jessica. start, me Let

and Triton When digital, assume it's for -- on with I really well, have. other lean actually, think the we ad and as at of I the and and that Jelli, of tech pieces example, the stack. we in look heavily [indiscernible], you're have other podcasting, terms the we talking force digital sales Radiojar Voxnest big we

that marketing is that on into digital what podcast, audience us audio. want, they go that And a in biggest we the area a We force even smaller that versus, a we But better about And out we've audio assets. can because the And inventory looking buy and that plenty the can second one it's inventory we part. focus allows can I'm is a biggest we of available. fit managing let that unsold quite "I'm -- and impressions." think time is touch, the will or big or same of piece of manual of opportunity barbell a and it's side known lot. of lot, where that allows force been audio of thinking bit got is that to a about from from way jar sand. sales the podcasting utilize a this people in that a And heavily we about of marketplace is invested in Triton does The impression-based a before it's of periods have are by they sort marketplaces jar impression-based some always us what a for the for in digital for it's of and selling have it and it. and filled, group, marketing then the us, that fashion the to for sales by these on things also that up doesn't by you sort these find and unsold used big but more other impressions. side, the the bought have around of tech media, the looking and high -- we can course, has where on sort little X/X as probably also to reach with And if room reruns, potential they you've here, cetera. the be Adding reasons inventory. station phenomenal building these fill probably a so people sand sort of that's looking the The way as of marketplace fill so podcast growth set rocks. analogy et been little opportunity traditionally on for inventory. us our to there, in it media But in But stack inventory a bit becomes extend the ideas nirvana get been it rocks advertisers point, barbell, radio think the again, the think audiences in bigger, of more filled is -- the some lot once with idea inventory, buy broadcast that have there's for buy may of of terms audience involves are better sales them to Think

Richard Bressler

up me got and should growth the do XX% and all revenue all that -- advertising? this ability as of even is all, model, your there quarter up stack I out numbers question those a rate XXX% about project take to why up on a on of Bob all forward there's has just everybody I the you to the to compared participate ex about out phone podcasting in what, major your the but should environment the digital digital these of you have we've build sorry, a it, with let talked think, second out that said, always we've our terms -- the go that tech one advertising and on based I, our I quarter. think, you the for second to manifest numbers is was into -- was think digital was models. I add XXX%. first what themselves as have this people you're little your XXX%, digital whatever Jess, any are and the go podcasting we assumptions the because highest marketplace projecting just know just the all last you And players your -- with And reason to I'm reasons was on before. model, going also knowing TAM we and in one knowing confidence, question about If that -- -- bit thing and about Jess, think before

Jessica Reif Ehrlich

XX% just could parse pricing If out you say outlook, if you versus local of out you'd national in parse -- you did mean, guidance. could kind like versus I revenue And give sellout, the quarter. a whatever that

outlook. today. on the of you seeing you're there's market that sure say just -- not in could kind more But what how So

Robert Pittman

wherever inventory, by We if for have because CPM? put metrics unsold a it, don't -- will I lower bet you. way, I've the they're can if sell avoided best I it And all we got at those. it's I You want we particularly us, think the will --

On got Absolutely. the a I driving rates great if up on everybody it? should the wants, other I've that hand, program be

is sort So don't it's pieces. out many think, not that, tell parade those broad in metrics as of different why averages, us. for the I so a which story It's important we don't

Richard Bressler

understand also the lines lines and And some then... Right. those distinctions of those blur national the And that on local, between some definitions and blur. of

Robert Pittman

want I the might that talk the didn't we've but about innovations out do. want you've One is the often one we infrastructure. that, had add remind Rich. I earnings time, that to we and this build seen big of in you just to ability, the on us

sellers, a as so and so silos find is, that are point, of that's is Mississippi that a And of anywhere less it. seller. blurry, one meaningful. very money? can a local -- distinctions any anything to seller Jackson, if we that's seller, opposed and national seller finds that a very, national having So less is that's podcast it these sellers becoming sell our can and sell that's local question national they or Rich's gets we The advertiser, But

Richard Bressler

estate savings, year are an the increase to whether the previously think one not projections. look what rate But modernization that to initiatives, and million cycles And last activities side would -- gave this those of taking we're Jess, our not in to projections. you point about the at I issues we we reasons in going on give $XXX both some and initiatives, you've our real but run optimization revenue your and at that the look one EBITDA for spoke it's going terms give cost all times we you EBITDA many We're capital of expenditures, projection did by cost then of of mid-XXXX. revenue drive get QX, I look OpEx which significant our at, seen if savings that we

XX% the back see and covered line. it the to this all base, it's cash or those it I group going Just XX%. flow-through company. out we that the Bob, as million out about think look the because percent you XX% during I whether helps fact the bottom think Again, numbers. we've about year of forward, we manifests incredible it post our at of reminder, the know of that in XX% margins that, we Again, a And that revenue a the think of XX% frankly business and getting this drops it's EBITDA this Mike you myself, we've expect cost Jay, when we to expansion. quite team, had And consolidated the going the took think already. the nature to is itself majority and margins whether fixed And quarter, in $XXX in just QX within the EBITDA margin up see the to in getting get And keep I of pandemic. as COVID and to you numbers. evidence as to to margins. start are digital our projecting about -- multiplatform business of And lots the to talked grows free questions, you But from from the that margins

Operator

next question from Wells with Fargo. is Cahall And Steven our

Steven Cahall

Maybe think of quarter down be first the third guidance, quarter third below it about the the on X% will I QX implies XXXX.

was Your XX%. about improvement on I a 'XX, on QX which down was down QX, also and X% nice revenue think was about that

seems trend like pretty it pacing you've you So you, this gave behind and got July for the sequential good. seems

just and Or getting worse? of kind to be cetera? you things variant, cautious worse that curious et because that suggest September. just anything August to seeing point you're get Delta at want So the given this Is in

Robert Pittman

I think comps than I on know you to... don't Rich, more that. want if anything it's And else

Richard Bressler

No. No.

look I mean just with, have think I just used I Look of every word we at think, of wouldn't think and gave results and word the I the I there we're look the guidance I it's of -- we forward we for results terms honestly, other ratios the talking more year how have comps. the point. the a gave wouldn't data our terms used in look and at getting at out and you what worse. kind factually approach everything in view. our leverage numbers

see So at business kind for worse. basing say quarter time. I this wouldn't we just point would I the where say just in third of the

Steven Cahall

think as got of year. then to that just of the -- returning guidance Yes. EBITDA levels the there you've And Yes. about end out by we

at level you've of back for building you'll is there run to being more $XXX EBITDA rate out. digital next at the point. margin? as guiding as a that's know little we not those taken your million as know Or next mentioned the $XXX previous be shift a But of anything us You year previous I to of million mix that EBITDA simple that I about better like assume you're a is on cost is. this revenue? those What year, like going in a lower should than else think same the blocks? there level

Robert Pittman

company anything we in build are in. There's mixes. get what and much always invested announced do haven't to invest also different too there into to want choose I don't to We have Clearly, the what it. yet, and we

past, we it, we over do I have we business, have the a cost think it's proved but a it's -- seen the continue And good control in done from we'll think during I fixed lot these though of it of to lot that. continue we that future. even think you've what I in pandemic times benefit over and the a control of we've for the build numbers

Richard Bressler

progress you above in -- business at your is all initiatives and thing that I remarks, of consumer just as bit all ability of the beginning I question, our to Yes, like habits add, look to all we've little growth savings. yes of we right? both out and monetize up I of And the you Yes. only are a think have Steve, the cost might is to and hot. in them of again. Bob terms think then see on margins. articulated there over go strong us to I -- to need I just have yes, And just real multiplatform I you front don't audio the And the I yes, components look just us businesses don't them And the some the over said our at -- make happening audio go think those. recovery the digital you consumer right look at following our and again.

to value changing. how to on to we not one stakeholder what of we're create But have focused has the have create product this I in drive do to get you how to value about XXXX. the like already we're So -- you we and said, always just -- we're is no product know going and value? to business the yes, mix most every evolving go what predictions But thing, back How confused, -- company. we I as do right mix

Steven Cahall

you, more one Maybe yes Rich. question for

quarter. the the expect we signal that Should paid ahead? quarters do It of You to like in in debt bit down confidence of more that. a little now of seems a

Richard Bressler

XX, second end of as of to end the Then of reported were we terms the is which covered not just X.Xx. the think think million QX. the what down. I'm like to see it term are it as that the in made not our you we going in we anything reminder, in to commit we terms XX.Xx of confidence leverage But sign I and we're quarter. as in was pay in And of Well, progress QX, significant at going to of we $XXX a net debt, a remarks, the loan, it at numbers I of like of close the the prepaid the again, end

So X.X out turn improvement there. a

QX, to in go same mean doesn't at don't long look to and all but made to So we getting it way that we committed the a thing, progress to our ratio. getting we leverage Xx the have are during target leverage,

Operator

is next with Petti from question Sebastiano JPMorgan. The

Sebastiano Petti

to digital segment growth huge that's just a Obviously, wanted of huge little accelerate. obviously here. revenue you're the discussing time lot how and addressability a Obviously, in continues into a drill particularly driver, Just seeing podcasting. bit to

the can bigger break are to Is wanted And down engagement? in brands just podcasting. what CPMs? hearing then you you're first, you from What see if separately, higher of seeing growth. drivers Just the more just Is it these in app adoption? it digital, How some that ex underlying the a phenomenal ex and of podcasting been has unpack and durable drivers? digital iHeart trends? beyond your regarding are terms podcasting digital of above Can you other

Robert Pittman

is world driver now. digital biggest what, billion the is that the in $XXX Look, the TAM Yes.

good us within of lot a really advertising. there's digital us. for advertising. category the chasing several It's for levels. good at digital One, So hottest is That's podcasting money

really is you heretofore, is area, said, like third -- invested an important we've area broadcast ad don't have great. which in the the podcasting. have a the for the our growth which look of people efficiently and stack, a number think, We're in we lead more hand. we hot, out So of Two, after we quite one to, that. tech And it's us, for And advertiser. making great the allows go digital radio by us built it's hottest

out these built You've cohorts.

to with built Google going But well. away piece the But cohorts this these they're has issues of ID and You've is last as out one-to-one mobile going said the one-to-one. cookies. got you've artists. Even

play a and reach put the well. can becoming you at to that it new you to make at efficient every And buy radio, the to improves the of ability very standard, in to those we we quite a and digital, because world unique broadcast buy the play buy digital look in that fresh price. digital performance -- add that have that's when in and can the So reach campaigns

often the People first. X the levels, us So about we from think yes, spear. it And we that that's tip podcasting. of in the way, benefit by to come talk

investments well." continue. and and in beginning out I course, taken can that "Oh, "Wait then, really it. So digital, and As I level." made about benefit broadcast to marketing, more to they can me realize, we digital of building capabilities data are minute, we've think takes our it talk of see beginning expect capabilities if other you as the to with years, And do tech they the we've our fruit, in another your then we're bear like to the I more they some the And a realize, do SmartAudio,

Richard Bressler

full frankly, slides, stack including stack go And we that in and up. clear But audio a Sebastian, only of why how on investor in but of of have the in to history the a the in are that this through type like not slides say we we ones terms look terms tech stack the at chance the podcasting. go of tech response same and through, again, of in the some to repeat stop, here our we we some deck, rich period. to gets Take audio discussion tech like -- or phone have audio added of also of this other quite got everybody depthness our terms it [indiscernible]

X, Podtrac, the shows we widespread. deep the of in which podcasting, [indiscernible] and is, your of listeners. think it's Well, with getting question, XX the confidence X-plus the most the that proves people most out about most deep in is are shows in again, a is this growth? it, Podtrac, sustainability think give in in shows there's interesting, sustainable I ranking to terms to what I Slide how shows top slide million So Again, of terms our which particularly how

might here's on an helps able terms the this QX, aberration last I to forward, are on digital? investors data Bob of and our another not point for predictions in I XX% strong say is point. know growth you line, is see, that the be of we going and giving came often-asked the growth overall got I revenue to in digital one we we had this from that digital where Mike So a off of when quarter. going thing questions is And again, the an aberration? performance the continue Or without that have any And I'm saying to sustainability

Robert Pittman

CPMs to just and superior podcasting engagement. Because that, Yes. look in let are it's quickly people The about, like you me asked better And in OTT. Why? Yes. CPMs that are hot, very the seeing podcasting? add

We signs digital are than people more today, remember, shows services, services seeing superior or click-through, big stopping. And Spotify music cetera. no of like podcasting et Apple, it and the streaming reaches

well. consumer, And is on us or phone to we -- their is demand, the So companionship. adjacent agnostic behind digital the in a, benefit. I It's it's We're other ahead radio. size got technology think it. about think, X,XXX-plus and in we've group to about the a radio sort on and like is on And radio ZXXX now, they get host-driven. the on between have scale a think know devices. as is And of KIIS great it And stories same They and business of really to more experience. podcasting an people care of user It our or to it future you in the besides know have when been or pretty radio. about that AM/FM, puts know our don't us there obviously, doing is and of XXX-plus we FM don't podcasting. another unique addition that broadcast but to podcasting platforms, us they radio. an that, FM, coming only difference It us We're kind digital position. They

us. So to more And goes trends. reach important even we underlying consumer TV's is probably find are -- ad-supported thing reach. we've pretty do have ubiquitous in I important TV, that most as mean, terms of ability down there. the We for become substantially And the the

Sebastiano Petti

go-forward within -- embedded and I'm announcing world-class sharing, very I currently content competitively in mean, et economics with And just in the the than MDA, what's Sports perhaps different perhaps are of deals Just NFL, terms quick numbers? of cetera, could they obviously, a these What confidential brands stuff. Illustrated, of thinking kind the or the sensitive. vastly be not do rev follow-up. anything But that podcasting of

Robert Pittman

us. And they our and to be success We're most And success, everybody. for And podcasts of come biggest that's being people beauties us I gives tremendous of making say In deals. the discipline one the to advantage. we're got that their of would the with number think prosperity. partnerships, is advantage people into One is pretty buy on doing one anything. size hit in have come It And economics success podcast us of successful we allows in podcast. picky reason our that of the they've interested about plenty to We #X a there's realize money which don't need ones enormous we'll profitless chance with for do. to I not our our us. us way

We and we've gap. that are number one, widening been

that going we're to our continue to So business way. run

digital business. value. the a run the it's the way put great converting ultimately, we a know And on But it's to revenue assure different earnings. that than shareholder group. to back create best coming earnings which emphasis our digital we going that's see players. And think, to little we I Rich's You way out of point the earlier, in We some

Operator

Goss Jim with from Barrington. is question next Your

James Goss

And those podcast of wondering to -- behalf prices your the of imagery if to you sales about identify you dedicated was wondering on could promotions. the own spot podcast transfer value the I I ad was the promotion. assign your for how radio

Robert Pittman

example, also think our look stations. are radio really on one our is the I of enormous don't way, for hip-hop not They when promotes network -- they of line way and think there's morning helped who that's build take Club, we of The we it. of doing iHeart we have our I Fox with build digital. all -- synergy Breakfast podcasts, one the it look of podcasting, iHeartRadio we hard biggest podcasting promotes Radio draw we our awareness. podcasting. But plenty at helped way Music radio. that radio promote awareness. -- TV any are we very at The there, every around Awards, sort biggest and for shows to both Naturally, at synergy By were on it. They a the It's Fox look step. people

of I that's, of we're much in sort sort So standard that the standard. think, and business, following the

Richard Bressler

by revenue. and -- to file operating of the the -- general and segments Yes. guideline. it, way is the I simple we revenue about the And we a course, broke of as cost just all continues we've mean out the -- into just think about just I'd been file revenue things just before

it. simply about So that's I put, just think what

James Goss

Okay.

no geographic market of So or there's just... issue. targeting size It's

Richard Bressler

No, no, no.

James Goss

seemed follow a at expecting, like Okay. It Networks same Is Then Or there? Broadcast this group was did one the issue? way time. the did other radio was well it question. comp and going something there better seemed but like and not I than that on track quite

Robert Pittman

a Yes. issue. comp of More

did year, the last remember downturn, sharp better than you -- in broadcast the especially, the downturn everything much in If group, Networks radio. else Premiere

the you're comping year to a So this different number versus rest of radio. Broadcast

Operator

Morgan Our next question Stanley. is with Swinburne from Ben

Benjamin Swinburne

and really times, just [indiscernible] number advertiser tremendous clarification mentioned one interest guidance. question, are you've your there's a Bob, numbers impressive. as the of in One on

inventory that given seem Go you that about these ahead, -- surprises like could Maybe of X/X what could And even drivers sellout. demand. the little You Kind it a you gap would talked sorry. about just and Because just drive bit, how I'm numbers isn't the of the close me talk are higher. sold. there? be

Robert Pittman

cohorts for mean, shows, it decided small the want like the we to small There little months the lot "I'm decides, January, stations. much. of markets, It don't I certain Once is year, time find x impressions, small times who a months of other I we the great groups. I podcasts, dayparts There and too. And on buy auto as lot. of upon can And of do Sure. have -- little is not the intenders, got are we a have our one, certain a appears the group." number year depends are the these of actually probably for "By which overnight overnight -- stations. inventory. engagement been good the are radio And the even in People year, on buying new this is to traditional find somebody, big wants way, the because serve has good and beauty people that overnight now buy add, digital, if -- free to want reason, we the the bought. is can CPM don't we demographic of or or, just afternoon the groups station. market." of are audience. of drive advertising, way and higher people can than once a times by impressions big radio cheaper -- I way, looking I radio might of don't the to nobody want of in Nielsen that mothers, drive we're we morning these in way But now use no all

look magazine in. X/X newspaper, this inventory. Triton centrally, the us help platform even take the X/X together. put tech to really bought business So by what's We ad it look through servers a that make from us If these at that to have stations radio our really the And in or -- somebody way, digital, your now of where going? way it we, out allows other Jelli, page, all acquisition, building like in pieces can is all have behind RIM broadcast you control Radiojar always fill is so the and the ability the and and Voxnest our the and we radio which to which

us product for that a to to holes. investment and that the and fill see have from allows us putting -- And was this electronic marketplace of allows confident together been good the So that we'll it. this one an feel we returns

Richard Bressler

just what of one inventory. aside it. By tie Jessica's back value tech kind all question the allows a is monetize the about you just tie of to Put more percentage that together. terms first to second. sector, It for goes the to in efficiently way, think I Ben, two Having those That's tech out stack of what your to just getting thing things. of

Benjamin Swinburne

that to some you're July Rich, think excluding of then reported I to the that you time end revenue. just probably guidance number? get political is And political? third is comping a the the XX%, by the the Yes. on also quarter quarter, guidance, clarify, the just Or but

Robert Pittman

a No. recorded number. That's

Operator

question Stephen is next Goldman with Sachs. from Your Laszczyk

Stephen Laszczyk

could. if I Two,

as a that in the if more types the -- are Just for What as about advertising Are the follow-up do of the content you these content what I looking strategy. was on are of talk for up spaces and and sports the sort white the sports arena? on content I and of are you you broadly wondering could will MDA you? maybe leagues types front going your What open you after? opportunities -- think

Robert Pittman

a podcasting in digital. we're team and carry player sports That's sports. great a question. Clearly, We major in radio, broadcast and Yes.

of have our play-by-play stations in stations. across We we are the in And all sports-only lot a leagues.

have Gambler. The We

We have betting. new in stations. of have -- segments, music radio now sports sort on have something sports we that we specialize which run also even And

aggregate we in audiences Cowherd, size and big are Patrick, scale, what for to players our part able And and ways I of growth nice specific to of that these the area we who we're attract in able a So And are family, part et our that ecosystem able And uniqueness huge we Castro, because find Colin Dan for of we're others think, content. cetera, and folks we're us. to think our of Tom given it's can't. monetize know. area, that,

Stephen Laszczyk

could. sales what the are then business benefits I more little of you wondering stations And piece guys? if on for I your one it. with could I'm decision how just your big curious, to bit Got And maybe you from partner agreement, more distributing does you a if then representation platform-type was expand with TuneIn, seeing digital the On get them? on them. this ad

Robert Pittman

provides you've think for platform listening. product. TuneIn's hope opportunities and it nice additional a It's got I a We play, hit it.

We else. As AM/FM radio make podcasts maximum you listening. know, We're Spotify, of In distribute our XXX stations. we everyone distributed just it in platforms. case to we podcasting, Apple, the other have a audience. of available over not the our strategy for We're

terms has both, is of we for an stack TuneIn at not other TuneIn, that monetization. display we our a no this another the We've us platform. done in done no they've -- of one and tech kind use. advertising value is is has step that we've think And only to plate of as has of can platform. the audio, value sales use way. for in properties, early in technology resource And onto but I There as I it along looking said they're in everyone about to the advertising can being platform I terms think that. did Triton out build for forms ad And set digital think a this we of when able extension the have And from how the I strategy. of on both acquisition, talked we benefit think use itself

Richard Bressler

do And This Yes. really kind it's It's just listen and that one you it in. I'm if how thing. their think everything question this else great because is about Stephen, hopefully, you a of strategy." fits you and hear to like and sorry, just -- really -- "Okay, announce it, is we when say, just it,

context compared do we're in Bob the you put around how like the that with Just and to we partner right other what well, about. that's said and them -- this podcasting word, the

Robert Pittman

buy macro we would of hallmarks we -- of look -- would And deals if especially of don't we we kind to of don't where another partner to do of have think at often we look be to things. are well partnerships the the look, it, or or own And either build, equally. Every And of think something, try think both just time the those we Companies parties kind like deals think well, I to beneficial I that it's partner out turns way everything. view And those and the we and partner is partner? also we that one are best well. should make, extraordinarily find for. I partner I iHeart to

Operator

with And our B. from final Securities. is Day Riley question Dan

Daniel Day

quick. Just the to sheet real and debt go the balance to back

getting target about or to better. Xx that talked You

Just couple any well above thoughts on -- years trading from price a that of your share ago. is

kind offset cash Or using time? with that over just bring of to free as a debt? much chip do down it you you're at think your and flow pretty generation Just lever away

Robert Pittman

is I we're earnings, our have, been we've the best leverage. to our been has way the right Well, -- think primary focus. our which you've I in been we've able improve demonstrate to able that and probably think grow seen now, world -- as we to And that

Richard Bressler

with by because very hopefully taking about tremendous by just as way, And value May. consistent the notes you down stakeholder Yes. we've in X the cash debt. think structure you have, equity a think and to message, got we create just this I refinancing, and reminder And we've [indiscernible] next we remember if everybody, been terms X/X% that the paying billion $X.X capital value, of it, on the

how X/X Xx, we at of create I per back because we again, then closely that of way Bob Mike Board, payments value And and is another will is situation, in about interest to it and and then -- terms will to looking when on -- our about so And the a How and to leverage, talk year. we'll time we to continue do is, the single the get then talk create to the value?" pay Board what of objective decision do value? cash. terms of with this stakeholder we Board make continue And equity with to Directors free independent to that in at our "Okay, will rest do of

Robert Pittman

are that pretty we focus. single-minded on But get our I level, to think we until

Daniel Day

it. it. Got Got it. Appreciate

auto a chain they've are shortages, commentary like Just ad on affected like -- up, by for follow specifically to that any example, lagged constraints, supply things Just categories assuming and labor restaurants dealers, bit. I'm bars?

as just you expectations of If then we other provide any that what could there sort for you're categories those. covered your outperformed have out And seeing here?

Robert Pittman

the of I at that pandemic lot demand talk I have marketing." think and on to diversified. do is almost think good from in a I start shortage No they're right "Look, impact where supply, there. I -- a I and auto there go. still have I want no during are mean, is don't even cut the think when advertisers now, -- don't have is auto, to price. But clearly many are chip the like we usually I those single on out single all affecting even of impact over back -- and pent-up yes, decided, big shortages dealers the keep them, news higher companies, demand advertiser sectors sector so a We And because big I looking about is sectors want us. But a having the got us. to Because we're to restart

to of -- continuing consumer. able not growth the even still and also to ones they they've on fulfill that advertise So hold so the relationship that got purchase are they're and are continue their relationship overall know yet -- relationship ahead to to demand brand with them that that

Richard Bressler

-- Great. iHeart the in be All will we us right. thank the Thank of and questions, Bob, you, everybody. Really appreciate myself, if appreciate, you and all Mike to everybody after and all very And team, tuning story. and but team follow-up accessible the you available have Mike much. any

Robert Pittman

Thank you.

Operator

presentation. for conclude us This Thank joining you again does today. today's

now disconnect. You may

iHeartMedia (IHRT) 7 Aug 212021 Q2 Earnings call transcript