IHRT - Earnings call transcript Q3 2021

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Operator

Good day and thank you for standing by. Welcome to the iHeartMedia Third Quarter 2021 Earnings Call. At this time all participants are in listen-only mode. After the speakers presentation there will be question-and-answer session. [Operator Instructions]. that is advised recorded. be please today's being call And [Operator Instructions]. to I'd over hand to like your conference the now Mr. speaker today, Mike Relations. of Head McGuinness, Investor ahead. go Please

Mike McGuinness

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

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

we Slide quickly X. Before cover on Harbor statements me let the begin, Safe

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

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

Bob Pittman

digital we're leadership for a advertising, focus, by announcing highlighting stage the about to full and in strong of think It's Rich broadcast business force third quarter We financials, both and this want our employees. radio of audience the unified continuing innovation the of again with with our our business, and our through and segments the We levels effect creativity scale strong potential sales to data-led and you I unparalleled largest potential detailed flywheel it audio to the performance ad the the and the call. our podcasting our great accurately business sharing evidence and behind success recovery take business that's Thank XXXX and a adjusted digital of joining strong of the segments today, the like tech of feel ongoing each strong of to our assets, being acknowledge will supported to EBITDA and our along their XXXX hope and growth able position. end our only of Thanks, will the commitment results evaluate our by you Rich Mike, deliver stack our all year. everybody. reach podcast company's further the good and conference you set as We you momentum a and individual transformation, whole. and it's afternoon, this growth of need business. this. information earnings radio gives including recovery our for quarter

business Our and profit in revenue quarter. growth the third continues its strong

compared third consolidated XX% Our revenue to grew prior-year. quarter

of You'll political, versus an $XXX We generated prior-year, while million, versus million revenue generating QX recall guidance free increase XX% EBITDA our grew increased cash flow. of versus XX% excluding adjusted prior-year. that XX% prior-year. which of by was $XX When

revenue adjusted improvement by XX% in XXXX sequential revenue revenue revenue XX% the was prior-year QX was XXXX. EBITDA XX% of in our grew now compared continuing EBITDA adjusted prior-year Group revenue XX% Group our revenue by QX by XXXX, Podcast Multiplatform up the trend is Our by prior-year, of and and the Digital versus Digital The grew ex-Podcast versus quarterly XX%. XXX% versus XX%. versus QX QX prior-year. and to And up Audio

expense quarter, growth, management. announced savings continued previously reflecting expanded our initiatives margin EBITDA the success adjusted in on our and our significantly the of focus revenue the Additionally,

the were which Multiplatform XXXX, margin We both expansion. XX% Audio In quarterly year-over-year margins the represent have Digital and of sequential a high Group Group XX%, and operating margins QX business. were leverage

partners of results segments; Triton. the digital company industry's States and service Digital digital growth the the as largest with over number commercial over tech measured digital one according users to newsletters a next digital service, iHeartRadio now lead high companies. digital our ad services business includes Omniture, our and with which and two million by the audience programs It both Turning our in also national monthly to podcasting iHeartMedia and United largest unique includes Audio XXX our broadcast our of radio the Group, and Xx websites local our usage their for in

a Audio levels expected five over growth the and with high will the and assets the beyond expected last of Our Audio which also doubled Digital believe quarters. and of grow it Digital marketplace Group size audio Multiplatform ultimately one-third Group, we is Group the to Even EBITDA Group revenues its of our profitable, growth than strong adjusted due increase than more and company's XXX approximately quarter our Podcast performance Digital performers the in only the the in to expansion delivered margins revenues third our it business XX% Group consolidated the and to larger and the Multiplatform to revenue one Xx is revenues, that today. followers, actually year-over-year. revenues are about that to that are XX% million revenues digital TAM. largest includes of footprint the important player. up relative advertising our Digital note digital The continues but social has has results service margin. iHeartRadio importance accretive fans digital have company with up Multiplatform the Included and year-over-year another not which now in to of our XXX% making overall the are the It's podcasting best up size year-over-year, next were

audience revenue, for Not monthly number XXX an Our we listeners only Podtrac, to standard we podcast with to profitability, Podcast industry all-time million publisher new Also XX of podcaster. XX largest next global million unique and iHeart high. next U.S. shows consider for generate space, publisher listenership downloads many larger the podcast as the one scale do measurement, offerings, downloads. an business are the XX larger and X.Xx Xx streams, and levels than shows Podtrac's continues across top the second largest has than categories ranked reach network. third-party podcast content than and the was commercial in According largest the it X.Xx podcast the monthly our

stats downloads. our the We comes one shows position flywheel of also These over depth of have that and the the and the publisher, publisher breadth with is the number It are And most leadership power and and remember, effect podcasting million it. the the with the ad distributor. are the podcast profit, a we substantial in revenue not margin. economics with by one the that publisher highlight generates

QX United outperformance part any sell largest executing anywhere XXXX. the performance, by digital States, strong growth in reported non-podcast XX% in digital our include anything, audio revenues, we technology. outperformed force ex-podcasting in strategy This for is business audio growing of Our strong of XX% that our also the by services our digital streaming as driven sales product, by the fact unique display industry which digital continued have the seller QX. These advertising supported its can Magna and

attention, our of we the Although a also podcasting digital lot of make businesses. our highlight non-podcasting understandably want sure we strength gets success to that

music of also size, radio Now, in group our virtual largest It revenue, metrics, broadcast our company let's Networks Multiplatform Group, audience. even organization, audience National size business and number and our iHeartMedia service Xx streaming our America move events which reach, radio of Multiplatform by earnings next of the stations. business. digital BIN, ad-enabled Sales to is live the and business, includes twice The broadcast and includes largest twice Network audience has all the Information the Black the almost Group their largest and audience the also

compared XXXX, people XXXX and in and on broadcast XXXX. QX Group evidence results national audio sequential every that any were alone assets XX% reach Multiplatform Group to down to XX% that player in will Google recovering only they Facebook. to to that year-over-year addition broadcast the media These includes iHeartMedia and in in digital an reaches broad The way unparalleled up month are with were its also grow revenues and that company that. America, compared continue our well than are sequential revenues year-over-year Multiplatform quarterly to continuing both and local Multiplatform Group beyond or levels radio other We to improvement footprint. their has our only are more

select Broadcast the you a couple the share sector Kaplan, broadcast as confident so Our future points by of radio like Multiplatform sector the I'd and advertising markets. in revenues medium. the growth the the of Broadcast radio continues potential expand, to of we're Broadcast as an reported to a performance which revenue measures as about why outperforming Group give of of Miller whole, data

and when listening the radio which standards streaming others, potential of overview each the quick among between listening split XX% about the which Music, digital of gets comScore, for landscape industry Spotify, are the looking Using at a segment. and audio audio, the with digital listening. about start measurement, audio, audience and Let's and of Nielsen of includes iHeartRadio, broadcast entire streaming Music, revenue listening and gets Amazon all Pandora broadcast Apple XX% for

inventory translate want Consumers to Spotify remember personalities is go It's One and to music out that go services information they services, shut the radio, are listeners interruptions that like to of combined commercials And collection and into hot collection. are radio with any no lack personal who's revenue are In interruptions over by gossip, why modern hand where of has no me key That, are the their giants digital definitely world, past, the by and want platform as The Music, pioneered. opposite. music both been weather Pandora. radio are music music run comprised differential, world. for led other Triton. of this listening And Amazon seen potential and what's I radio. that advertising LPs they not. our content data experience. their the a the two limited in prefer is humor, their is our for on music, by music potential. know even advertising has who's importantly, the probably advertising the spent possibilities more the music there the can't product no It's that But to Commercials are limited and services important Music, go music means advertising these collection, go I potential or When being both downloads. with audio. not collection its load audience part In of pure the has experience. sectors It's broadcast when advertising analyze information, differences Now, Apple as and on made a social. near but environment, It's in the talker reach, collections. SmartAudio same replacing time traffic, It you've in progress they hand, anywhere collection companionship, when to and ecosystem amount we've they the CDs, going that sectors, of of on let by perceived news, and changing. this music of significant where revenue broadcast hand native on music ad people music-only where ads run information, lot. from that's advantage Radio of tech other even there the revenue environment. are appeal streaming

download the social but know the let to other broadcast that you every grown, also listeners and added. actually media XX% usage, radio. When comes broadcast ad WARC This shows facts pie consumption of the dropped about in the A usage. than that we're TV. number the of We years. real of spend follows whack. more media listening key few past time and XX% listing grown this is revenue in the in formats, about while seeing its total a is broadcast Now, pie inevitably driven media radio released decline spending into know by converting has music consumption it with radio platforms that getting broadcast more listening consumer TV of CD overall strength with the growth time, Digital competing consumers audio day out and that of here linear it XX% collection me services of has is still media bigger September surprise listeners might to and XX new of as to study of they happen grown music radio is time give with total you has power streamers. do the are to music has

XX% reach of to have options. uniquely to an reaching advertisers, only viewers, TV this of new react additionally, radio Broadcast this significant is now to light However, that spend of TV viewers as XX% for goes audio slow only reality. capable X% advertising TV And TV TV advertising to with compared filling light indicating XX% gap some as OTT viewers of advertisers been medium, a gap. for classified faces

to to which Multiplatform TAM, access reach gives Our and confidence the our for address further growth Group is both light support ability the us the billion revenues. viewer of gaps TV TV our potential $XX in

business; me in Multiplatform our let Events for strong. also our is where the move to live included Now, Group consumer events our demand

The success Our which this past revenue QX the includes consumer our a Festival, return and Latina coming COVID, iHeartRadio to XXXX and the year. billion continues last were the Sponsorship also live of and can which high to of for larger Country couple XX-day exceeded events to than iHeartRadio take And I'd XXx are like in was in address live levels Live compared Lollapalooza. impressions, be event the quarter marquee affect seen virtual iHeart Ball to XXXX events live to and a the topics. recent over tour country. generated social and live relevant course, was iHeartRadio Fiesta Ticket Events XX% of now up December. up minute XX impact this in-person weekend's demand prior-year. Music Festival. the of back as Jingle sales

on but advertising privacy While real, business. is a human and making us. their And had and to touch impact behind toll also they Supply its to recent issues data material finally, want have impact be to our I are appears also Apple's on change not social headlines, chain the revenue policy.

companies digital a a they revenue said negative their result Apple's as new have Some feeling are impact policy. to of ad

and there aren't We reasons several are why.

we own with platforms First, first-party have our data. our own

auto broadcast Even with or defined for inventory parents, are we our new target future purely buyers one-to-one inventory, IDs. digital one-to-one. and cohorts, which audio focusing stressed the like using smart cookies digital-like not Second, cohorts of instead built using we've around audiences mobile on

and IDs company broadcast. target makes to Third, buy. cohorts are to past the premium world positioned this measurable the factors, platforms across real our privacy toward brand-safe, is targeting, see the that platforms other we same that we shift with can that from only U.S. moving In digital we of engaged podcast that toward one-to-one data-infused in targetable and comprised in one-to-one platform of and restrictions to Big iHeart tech the have scale and ad that are uniquely audiences are audio past scale, believe the cookies, think picture, cohorts for mobile changes Due audio ours. us cohorts in positioned the advertising, unparalleled past audio deliver serve to all and well highly like replacing marketing, we seamlessly ad to new world is

is network which podcast by to includes ongoing with betting Sports according country. as Cowherd and the iHeart Patrick teams talent iHeart podcast NFL, important partnership This announcement one live the This Nielsen, industry-leading partnership in categories over the one in Americans well our Before and sports multiyear which to DraftKings. select enable use sports, the assets, upon million and on Network, professional I industry, made iHeart's our the in the the sports the stations about DraftKings reaches yesterday touch strategic it partnership company on also want stations turn builds that Rich, across will our Dan the of audio like with XX I talk and fastest-growing to the we including partnerships to assets marquee of sports as sports iHeart. number Colin sports NBA largest led advertising coverage and audio of

our delivering, We reach growth our digital is and of are the sports management and expect a betting radio radio, driven rest forward, engine going I be Rich sports for results else XXXX over superior broadcast evidence potential. data significant assets is like and our continue using this platform iHeart's assets partnership tech We growth audio us ad the drive into excited and consumer with about about and assets anything and turn are supported by we're and it I'd that, beyond. to audio to by And to to unique these potential suite sector team revenue analytic of podcasting, excited to that DraftKings with believe the tangible unparalleled Rich. unmatched and further the iHeart the across in of and capabilities. of to

Rich Bressler

Bob, good everyone. Thanks, afternoon, and

success as environment. strong delivered the which As unique audio improving as our quarter, third laid trends of reflect in operating and results strategies out, macroeconomic assets Bob in continued the of we well power the our

consolidated our excluding revenues quarter up for year-over-year. of year-over-year deck; XX XX% up our XX% exceeding investor of Slide increased were Political guidance When our QX the to year-over-year. Turning XX% revenues,

also extremely XXXX. are with We pleased continued sequential improvement against our

commissions of increased higher employee variable performance partially financial based like return revenue. reductions increased revenue Festival. X% events from by and initiatives. QX only cost down compared resulting by iHeartRadio down employee digital SG&A improving These XXXX, expenses QX reduction bonus related Our live revenue, increases expenses, higher our profit-sharing XXXX. the and to in the X% increased the significant XXXX compensation in was compensation which and due expenses down from XXXX being Direct XXXX on were XX%, compared to content and and XX%, primarily significant improving from resulting costs national drives modernization and lower offset sales expenses, expense in driven and XX% XXXX QX operating other by higher primarily in Music expenses to local QX driven third-party higher from from being increase to

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

to increases the in bad headcount the and the SG&A. our increased investments debt and contributed impact partially lower offset of were in modernization reduction business increases addition, These our significant from by fast-growing cost initiatives In digital expense.

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

year-over-year. the back Audio to was slides segments. were Slide a X, XX% are XX% on operating up additional our adjusted turn performance. you on of note, provide revenue presentation If our Digital color And in revenues as additional there I'll Group EBITDA performance segment the and up year-over-year investor

XXXX, of QX iHeartRadio XXXX. XXXX. QX down profitable, the business, on same Group which adjusted QX which year-over-year, basis, we our XXXX, Digital the a from Music podcasting XX% QX XX%, continuing to significant digital Digital XXX for the QX revenues down XX% our performance. of Group versus a points which improvement XXX basis included QX XX% was not were only adjusted versus improvement our Within were though to which compared grew strong Group QX the points sequential was Group achieved from a Multiplatform QX mentioned year-over-year, revenues also margin their improvement in XXXX, And improved our even And EBITDA was revenues, the to a our is non-podcasting as does sequential XX% XX%, XX% improvement XXX continued return in a a Festival, Audio margins significant quarter to and and XXX% XXXX improvement revenues improvement impacted quarter whose That expenses. third expanded which grew businesses. associated importantly, from live compared XXXX, last point compared profile year-over-year QX sequential rest and basis improvement onetime quarter expenses as by and to XXX margins Multiplatform basis from have we a were margins the XXXX. and basis few point margin margins negatively the were XX% down QX XXXX. EBITDA Audio up

revenue Looking Multiplatform streams at within Group. the the

Our Broadcast revenues grew XX% year-over-year.

the is Broadcast Within in line was platform. third SmartAudio data-infused SmartAudio, programmatic the our XX% up quarter. year-over-year

TV add data radio, earlier. changes SmartAudio the landscape revenue generate highlighting of we inventory expect ad TAMs, reminder, the from data to a the it tech. and digital discussed Bob and will new uses value capabilities, and especially the As considering we product of to the same that as our And advertising Broadcast continue as the that technologies rest

And Weather in Our were a XX% impacted prior-year Networks our revenues compared to were up Networks, prior-year, Traffic by Network, premier as the the comparison. X% which X% business to up includes as less Premier compared reminder, and Total TTWN, well which as the which XXXX, our COVID affects up compared was which was to prior-year.

XX% XXXX compared Our Sponsorship to QX and Events were up prior-year. revenues

iHeart customer basis. on live desire Media this base. Bob the enthusiastic engaged mentioned, was The high Services this a with the interact & advertisers' the of reflects and to Audio As music for XX% demand reported and strength Group revenue down brand,

our up the our net of $XXX in At summary million segment figures announced revenues Excluding cash of which XX, On outstanding, we $X.X a billion million, of had this these is impact quarter-end, debt of were balance debt. Political, approximately there term includes and of XX% loan. prepayment Slide year-over-year. of previously $XXX voluntary a the include

balance so, realized reinforcing will we structure have more importantly, instruments We we not and May benefit At date included these iHeart's concurrent loan, our iHeart the the savings, its go-forward to preferred In capital October, moving will the call repurchased of expensive in end our basis. doing of to from our which restrictive impact forward. our on business figures. on on expense interest balance of exited but million improving XXXX, the interest stock in full X, which positive demonstrating and of our also commitment is $XX a most prior a we confidence term sheet, the the repricing

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

progress quarter, leverage our expect opportunistically generated previously our will of to of cash continue debt-to-EBITDA announced We committed we target to million we and remain ended leverage continue free We Xx, capital the our market QX optimize third actively net In and flow. X.Xx. monitor of approximately XXXX $XX structure. to We conditions that towards achieving goal.

of our consolidation sell part the estate real be real footprint, to modernization has savings for cost enabled asset accelerated is these capital real us quarter, announced which Free which the and QX. last including certain our assets, expenditures. cash previously million partially flow, of initiatives gross proceeds has $XX would net from redundant sales mentioned we estate offset As estate initiatives,

result reminder, onetime real to a consolidation. our expenditures this related As spend elevated of our estate a capital as are year

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

XX% As target a million in our a we on majority run from reminder, XXXX. and XXXX in XX%, pre-COVID target achieved announced XXXX were up XXX rate and points XXX from post-COVID modernization savings replicate QX initiatives basis basis XXXX. points XXXX, We were believe these XX% XX% mid-XXXX, $XXX actions, XXXX. from up coupled with XX%, previously evidenced up margins of our Digital margins by Multiplatform as QX from continuing QX points revenue XXXX, expansion in XX% XX% growth, QX up in $XXX in the QX QX million basis XX% leaves from and to remain XX% Group QX in XX% the XXXX in and Audio XXXX, in QX us Group in from XX% XXXX. well margins QX in up positioned for were margin XX%, XXX up Consolidated QX. in

look with the want following. QX, we provide you to As to I forward

for up our XXXX X% note compared is and Our important was to revenue. approximately that month biggest October year-over-year. consolidated XXXX October approximately It were revenues flat Political to

Excluding Political, approximately XX%. the have been growth October's would of impact year-over-year

that And valuation per gives EBITDA excluding XXXX. or share, higher return to method with growth, reaffirm XX%, previous confidence use, Political, be QX future momentum I I'd a slightly consistent implying provided flow business. information rest will compared to call. using this and a year-over-year and the cetera, and levels same XXXX our is earnings our of note by iHeart we We the Bob the earnings guidance team on possible, to now like et of to potential quarter For have And not up guidance, earnings metric. employees, the and expect of we joining these the management our of Bob XX% value by take we XXXX. We questions. Thank appreciate communities XXXX give journey in undervalued the will we'll the operator turn the impact you our parts, partners. as to audience, And earnings cash fourth you valuation without results, serve the of we the to utilizing excited company. We reminder, your our end this adjusted the the over No that to expect specific the revenue we matter thank our some are revenues on be approximately close quarter, today third business what think quarter of whom and on. hope it our fourth revenue free began we be and call. you. any would revenue we in everyone

Operator

Your from Instructions] line comes question [Operator first the from of Jessica Ehrlich BofA Securities.

Your line is open.

Jessica Ehrlich

so money is market, a expected? then two impacting Thanks. higher more DraftKings. on on betting it the it Can radio podcasting. other growth color more it impacting do it expect And kind on topics. How other much Or exclusive, sports can players meaning deals? some other you just costs? than one costs? little impact will bit Thanks. Hi, -- just your can your is content. of Is industry economics, of And they One us on And give do or that, how impact? the have chasing driving With growth? two questions timing it coming the you maybe into is there's is I And how side you do deals? of

Bob Pittman

let and one, the with DraftKings. me Rich on one first start second the hit Let I'll

you Podtrac, you podcasting, increasing saw, think Slide revenue, other you if I on on that Jessica, think I actually podcast publishers. our And we're look lead it's I in at if the over at X. the here numbers think the look

comes I we If effect Magna that XX%, bring to party is hit who money we're have. show And hit share. estimates, it's with reality podcast the matter XXX%, to flywheel to to you clear dream in people of play no think start industry, a us, podcasting biggest having creator look which having a that up the a way publisher how about every podcaster to is best The to including is the much it's the up us. get show. continue hit evidence the an we is with show. again, game, has really at a gain And that the And

on that the we first sort being tend biggest. get So, we look to of of because as flywheel result is a journey

we we In with also NBA, NFL, the well. costs, terms podcast Shonda with ourselves participation. Rhimes, as no with the but do And with of have profit produce do internally hits only not we deals there

marvelous of sort here, product than have pickier. control looks be gives us getting a over number we're So at which it. and probably anyone else, diversity being one And of to more we able by kind given a sense. And chasing no into and economics watch not to we're position, economic And make our something really profitless the of of trap carefully fall do the people to some doesn't that say prosperity. lot able

from see to going not You're us. that

Rich Bressler

Jess, it's Rich.

me on want go -- on your commented podcasting add I specifically and Let DraftKings. just Bob thing one question to what to then to

growth. starting and in of We But QX numbers go on on bigger in this articulated, we, overall to up XXX% if revenues. were up the in the quarter. everybody, now XXX% bigger XXX% numbers back, of Bob I terms already Just And revenue QX obviously, remind we're you to get lap as revenues. think in

overall the accretive obviously the So terms paywall we I get, said, flywheel and on, point effect, just behind line going ad-supported we and from time. think as period of of top not strategy This strategy that for opposed to about really way on also us the you've the benefit the Bob's out that line, a to we're our but on as hearing proves some to numbers, on been podcasting it's margin. because bottom the in the

in So a of noise wanted the financial and I there is, the say as When remind aware, is because everybody just more articulated largest What we're podcast Bob in respect disclose our there's the audio have I larger to the can't and I lot to the out categories we it podcasting of advertising release. that one making we're there. we've DraftKings of exciting, of one the then reminder, of a industry, a leading during this there, network for to think all deal got and details. comes the we the with a number just lot but people with also the And lot I with any partner pretty sports in with assets fastest-growing is to because claims marketplace But company think, all audio this out would as really point DraftKings, NFL. sports well is us.

XX have NBA. Sports deal the people. We We've million Network, which the with iHeart our reaches got

exclusive. of as And XXXX our all think I future about into -- you the the platforms. to touches this And by into And that think is fourth a So is yes, continue XXXX. the momentum think everybody what is way, the it I should it's out this into quarter what not starts about deal significant. and and we year think modeling and deal

should Looking at of terms this, out in growth. give projecting future our a confidence everybody of lot

Operator

Cahall Your next of comes question Fargo. from line Wells the from Steve

Steve Cahall

the impacting the And I Vegas ad in know first talk really what company the to you're to that supply isn't had what's on advertising this in just about market, in business. AudioCon Maybe you you're I Las think say going seeing chain Bob, recently. quarter first

So maybe in around what difference lot mean, the some there? just seeing is I talk on Or moving context maybe of ad you're folks your peers. think going into in can what are maybe is audio? versus how of can share a about you kind trends that it you put you

Bob Pittman

by there but we people of takes. I is sort same somebody's that got are what the some demand, Sure. we're give are think supply to got talk anytime is see also it's they've think so certainly, is what that a are Well, people -- it, demand. we and look, better I some affected but But are somebody doing later. problem, hold at most that people think there realize is I being their and anytime hearing to to or supply they temporary sooner And going important -- they're get time,

and -- this, hard it's advantage During prove probably we're have probably like to because but slight a a period more have efficient. we this,

people Xx about level, same at about Xx radio think deliver of to example, If yet the TV you the the radio. same TV for TV, CPM look at most impact and is weight

the the of keep keep you ways your want of radio slots most your expensive media. to one demand, So into some to efficient/cheapest some of to is substitute demand if for more the

people for to of a to we supply probably solution perverse are want sort good if have it, fulfill on a don't demand, that. thoughtful a way, are a who looking it, hold And in the yet strange but So about to marketing. in efficiencies they're probably to really

to of think we've they're going don't people, quantities. of to supply is sort issue. major permanent or as to talked we talk that's think to sell problem any And sort this the think I advertisers that I diminished have again, a look, So

a demand for a have something catch want So realize up. away don't think to wait built. to advantage giving think because restart they'll minute, they huge I up if is are from having my the them one they they they've step desire I they And focused on, they of have in that product, every

Rich Bressler

just what the of Steve, mentioned support again, Bob early obviously, I audio only of there we terms the said, one being a in general thing just in to just reinforce of -- hot. trend, is few things

of our I ex thing again, technology or talking X And have podcasting, or digital think, you network upon, the or the digital Triton. with we TTWN advertisers then also brings coming a work ago year or got I to diversity or terms and touched whether that in solution the ways this digital can think didn't light base. the many full Bob is, months Multiplatform of capabilities, then big so to about and And of broadcast before us and got events and we've say play TAM you've a of podcasting we're you've really a or even finally, from us our integrated benefit needs company. ago, Second of advertising acquisition meet ability the we and heard in lot that that into everything because different in

category X%. one no than have that's We more

individual sure, Bob's is, really some comment up down upon we've are that's advertisers from touches more that than And that also X%. greatly benefited have We but are no also. that we have categories categories some

So total it's a mixture.

Steven Cahall

as maybe sales running the see a Multiplatform talk on that maybe percentage And could going about over next and is you then of or that, what SmartAudio X? year Yes. you where expanding

Bob Pittman

have have is broadcast to truly built a is marketplace hear number, does. certainly Digital the radio, us, haven't great reach increase. which it radio that we the and into -- audio will doesn't We've business. money on sold the today like not impact. going which SmartAudio marketplace, given that I industry, audio so of TV tool to be bought the we're your the year, continue January platform we at the you able And an going out to obviously, basis our of Well, this out broadly new in think declining, in can integrated They buy digital we're that think talking but be for you has, see to broadcast the built we the at numbers when And us every radio commercial next with reach reach an and reach. a SmartAudio. launch to I which need integrated doesn't gives of problem. And around to podcasting, or using what to digital does. bring about only look kind set cohorts. whole but first cohorts think Triton one got radio announced, be And be radio able that audiences across can to into has advertiser people radio least

a in enhancer with for winds put looking this pretty a up, Well, they're by using position and of and us radio this we're I everyone. into that for SmartAudio, it language to being reach able comfortable good technology So think, to do.

look continuing our as to for of climb. SmartAudio advertising overall on percentage think to be I an So we broadcast radio,

Rich Bressler

Remember on as what there the on you you to your that line. just line getting and about growing SmartAudio of commonly Multiplatform getting but articulated, make line, we've progress upon, levels, the want Multiplatform get the what get the way, the back too our Bob a think continue and SmartAudio, which by and just the if back capabilities confidence Multiplatform in in our enables digital significant talked could digital to our past us as TAM, it's look it, It's digital just and Multiplatform Bob tap billion into plus company, includes do about Multiplatform line but and it, we've people talked the line tap TAM. you also and not $XXX line. the into we billion that $XXX question, And back if about total to at Steve, the touched on 'XX we to

Steven Cahall

of one, a maybe kind one. And last housekeeping

mindful interest, As or changes we next of? be cash think cash we year, any on about CapEx either should tax major

Rich Bressler

Well, capital go we're going down. expenditures to see

I retired piece all would interest in that our estate, modernization that one $XXX our an going expense That had the you expense a think is both and down and should options, the interest we be think as efficient from to of last which rest interest confidence that then bring the just mid-XXs I last is the -- some the to know, for capital be estate, million those our we $XX early reinforces in And expense. expenditures, take said year, on we substantial of is assured lever And saving And would expect coupled expense, we which increase on we that heavily increase preferred savings on savings just already one-third said this finally, And on up, talked for coming $XX again, business. with be And real our and that million think, are everybody about we the quarter, reminder, our permitted terms is in creation efforts numbers fact at also our due expense we interest us. year, we're that have retired. as May this we accounts. the million the refinancing the payment the we've year. but operating more another approximately that a getting go from spent of real that. our downsizing in of major of to in value about for looking -- do on of I

Operator

B. last Dan Our question Day Riley Securities. from of from comes the line

Dan Day

I weigh be or talk between to the debate even you dividend, long there free cyclical a a you're against be Xx forward-looking out opportunities, the look a target is about for it and -- dividend quarter about back once Just how for M&A might you this is, two that that you shares, given can a support least leverage we've while, there, in that. getting on whether at business paying next see guess as basis. this first how cash priorities there one, flow buying talked a on there a as

So, that. curious thoughts your on

Rich Bressler

just company, help if always our because will you another the look comment when our shareholders won't look see from what going numerical I the there. at with including total, goes on capital that. of myself overall with our assets base. your in the and to can continue and of Mike made, look base I'm And debt it's I made think paying value get comment get now this since I'm have just and going around of that including the made think significant form out doing toward Xx. down to leverage, right potential to appreciate money when get to Xx the could it quite I and suggest iHeart the Again, our I to of we at the what's of or I any structure, them, we're to that which shareholders, to to iHeart Xx And leverage, iHeart, all them is way more not but always and to our the working you our make Bob surprise that been significantly acquisitions but equity have one structure we -- at to really working your any -- returning would we've progress and we've target would to on have Bob capital when to said just individually comment Jelli everybody Board capital rest -- even basis, specifically a whether and we're significant to not frankly, we'll -- total valuable. Well, team each in been iHeart anything on been going the But question, or is is suggest, none back that get and every with assets the StuffWorks they've our best history options in get

And don't that see to so I any pattern. change

Dan Day

topic. want to another turn you. to Got I

the level, that changing how I local in Is sports deal mean here for that or the being do changing announced. national something sports radio Obviously, get rights? either maybe going calculation there? see you you and for betting such aggressive big you terms of the as you the live see DraftKings do more radio a here advertisers. after getting opportunity Just aggressive at

Bob Pittman

on We're actually pretty carried our quite teams aggressive. major a And actually, of have number stations radio we play-by-play.

have sports of talk big a We radio number stations.

music Nielsen, have -- our doing think we even specific on is even We Network, probably reaches we Sports them. network. sports and to I people And information, stations, according iHeart the stations, name is have where an which XX sports some betting largest then about are run of sports Gambler million The the them, is the

Dan not with we We've the Cowherd, So when we've names talked Patrick. a there well, go lot but as of the earlier, to also got network gamut. lot you about the biggest success. podcasting, podcasting Rich cover sports leagues only got big Colin that a And of

for it, investment us. So continue invest I a great in it's we to heavily think and

Rich Bressler

questions the drive our -- about And the this by of we're way, equity these to I'd company and here relative focus drive the value is thing talking all this to of the really one of value company. is say, maybe comments just

an it's sheet the through So and and standpoint Board operating our us I Bob of with put everything filter two talking you that whether is balance of a from or standpoint about, Directors. hear,

DanDay

Awesome Best for my questions. answering guys. I it Thanks I'll turn commentary. appreciate luck. the of over.

Rich Bressler

myself to Great. taking for Bob, hear Well, any the Mike want thank story. no other I for and support. questions. all, for time follow-up first everybody is Thank available everybody to your in of time are there questions. iHeart the the And

Operator

participating. conference you for Thank today's concludes This call.

now may You disconnect.

Mike McGuinness	Executive Vice President, Deputy Chief Financial Officer & Head of Investor Relations
Bob Pittman	Chairman & Chief Executive Officer
Rich Bressler	President, Chief Operating Officer & Chief Financial Officer
Jessica Ehrlich	Bank of America Securities
Steve Cahall	Wells Fargo Securities
Dan Day	B. Riley Securities

iHeartMedia (IHRT) 7 Nov 212021 Q3 Earnings call transcript