IHRT - Earnings call 4 2023 | iHeartMedia, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the iHeartMedia Q4 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions].

As a reminder, today's call is being recorded. today's to hand of McGuinness, now Relations. Investor will call Mike over Head I sir. ahead, go Please

Michael McGuinness

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

and of today's discussion your and Pittman, and President, Joining me remarks, Rich the management are our conclusion for Bressler, At questions. prepared our Bob Chairman CEO; our CFO. take COO, will

what along we identified company's press available can regarding of and measures stated on our a this operating are to to include release, our the presentation, filings, which GAAP and follow on use section the and based are call is website Investor addition an may filings.Additionally, non-GAAP I'll And presentation call These management's we results. note during available our In earnings in our our as Please current actual you our measures. turn that release, SEC between to call Bob. of from are and will that expectations, in over today's result now with to factors remarks. Reconciliations could have results statements on financial this performance statements forward-looking differ in our refer financial SEC earnings Relations certain the included certain and website. financial non-GAAP earnings call,

Bob Pittman

EBITDA previously adjusted that quarter XXXX fourth provided our results revenue and Mike, report line We're morning, good with in to Thanks, guidance our pleased everyone. were ranges. and

quarter just some on we've thoughts the I had. Before share take the through highlights, I to fourth want you year

enabling podcast including environment, programmatic AI at EBITDA just that to automated our broadcast time, translate our driving in of important and and when we use In we developing to to to leadership the tool organization continue markets, culture in the at and than have within let to is which audience uncertain our being application fuel devices platform which that, the success, navigated the anticipated course, of cost $XXX same marketplace range, the of continue non-English into we revenue substantial have of we inventory.Â The our beyond guidance technology international business, provided are strides began of that AM/FM to originally advertising time, and we the While expansion adjusted quarter, for cost-effective within take up that and to AI.Now onto trading longer-term is same initiatives financial the in new language look had more ended will advertising content, built enhance At the you quarter. continuing proprietary critical of some $XXX to the and base platforms. year, our results our me ad make efficiencies. unlock our million, extend progress position fourth a new generated a million. to through the we million key $XXX And we relentless

the quarter, consolidated than prior down high compared better quarter were we the the digits. provided X.X% for down revenues a year single to Our guidance of little

revenues consolidated we million cash generated free of our were political, of flat, flow. impact the Excluding and $XXX

the over individual our the represents Audio year, revenue. Digital quarter $X Digital full up for prior year, billion versus million, the operating to Group now Turning of XX% of and revenues segments. Group $XXX generated approximately fourth X.X% of Audio And total generated The now revenue. company's

quarter note XX% XX%, I up Group. of $XXX year, Group for in and Audio EBITDA This from full the ever generated Audio up Digital year, that of Group's XXXX. highest adjusted versus million adjusted Podcasting the continues Digital EBITDA EBITDA and was approximately year. QX engine we hottest million, a grew the this the $XXX leader, company. Audio margins adjusted the was a prior it of And quarter, Digital versus achieved we've best prior Audio would are were And consumer for as Digital to strong the margin in the EBITDA Digital the growth Audio For revenues the our with adjusted remains XX.X% Group, XX.X% as a for the industry at the podcast adjusted margin be Group's EBITDA margin XX%.Within new well, medium.

Additionally, iHeart U.S. publisher is the accretive next In more podcasting continue X our was monthly as with the off combined downloads company podcast discipline to once total podcast margins our Podtrac. financial again EBITDA December, according our in paid to the be margins. EBITDA ranked than largest publishers to #X

part have recently used in XX for with podcasting of business, live over lines iHeartRadio and assets, with is build of new power podcasting. our the Our Ball out Tour the broadcast years position starting radio leadership app company, marquee to events our most the result ago, the of the Jingle we including in iHeartRadio which business

has competitor. to closest addition listening the radio Xx business, which In our our also industry-leading digital of podcast service, we #X the streaming have

XXX were election QX a we're significantly to the year. advertising footprint benefited down impact factor any social service largest of year, radio, And events prior political broadcast by the the that prior than versus year. local quarter, fourth have businesses. advertising. performance X.X%, X, $XXX down national versus million, down political a in people reminder, each the Multiplatform reach for States of United this impact month, was growth our for of engaged record X,XXX the of to as now additional comparing with EBITDA operate million all revenues which we highly more provide and million, Adjusted and We from X.X% XXXX, websites of which excluding audio company.Turning base XX.X% spend consumer and which to Group, for networks, interact our revenue the advertising $XXX represent includes partners In and additional our the opportunities and nonpresidential

to radio in of we to higher Multiplatform of that we we benefit and because will return mode, EBITDA our operating a as XXXX and to see with disproportionate leverage As adjusted to broadcast our segment. ahead, which recovery benefit a the look year expect the growth Group year, all assets assets

material we Multiplatform advertising see to to expect expect quarter-by-quarter XXXX of in throughout We election of the a the performance see And well. improve year. our half the back well the Audio Group, from our political benefit year, Rich. presidential course, a as to is year as growth digital now as about overall own as our we're audio it excited TAM of growth looking over within And Digital at turn the it. I'll And Group

Rich Bressler

Thank Bob. you,

XXXX As and with notice our in adjusted you I mentioned, revenue as that, line you'll through quarter take our were previously fourth our EBITDA provided Bob ranges. results guidance results,

digits. down a down QX consolidated Our were little we high the than revenues single year-over-year, X.X% guidance better provided XXXX of

impact flat. consolidated were our Excluding revenues of political, the

from increase initiatives. digital operating the was mitigated by and This in content costs reduced for fees segment direct X.X% lower revenue, variable increased sharing result compensation a cost expense costs, small an broadcast by as consolidated profit Our higher expenses cost of content higher our but increase quarter. primarily resulting including digital and third-party driven production somewhat and costs, savings ongoing

driven initiatives.We partially expense, the consolidated of guidance. moving we X.X% These $XX.X the associated well were income increased of expenses marketing year in primarily QX in streaming generated as quarter, call quarter Our the bonus festival which Hulu, million border driven million stated compared business including iHeartRadio expense trade by reductions increased discussing as the last variable of with SG&A quarter, our operating in by our by and for music promotion our to events increased fourth our expense offset $XXX.X cost to increases quarter's our GAAP when prior savings ongoing quarter. the

guidance year the adjusted million election to $XXX prior quarter quarter, which, we in range $XXX $XXX million million. compared was within of EBITDA reminder, the was million an and provided $XXX fourth as a Our to year

revenues.The to X.X% segment the fourth performances. basis XX% year-over-year, $XXX the earnings Audio adjusted up in comprised a our as Digital In margins And XXX a our on Group's were our was of XX.X%, and million, now there performance EBITDA consolidated segments. are year-over-year up year-over-year, the operating QX approximately increase million, fourth Turning of slides presentation points. Audio revenues XX.X% Group's Digital of our $XXX and they the reminder, were quarter quarter,

The were and of and Multiplatform high-growth $X that year-over-year. margins as revenues and The What with in increases our this from which been Group. XX.X% of as is full step to offset EBITDA adjusted digital quarter, podcasting which take might year-over-year business, partially down back, part million, Multiplatform be EBITDA Adjusted we've capital a previously for high-growth marketing by Group's continued by $XXX Multiplatform expenses, apparent year-over-year which Audio programs.To impacted increases or year-over-year primarily reduction growth our our Group Group's fees announced Group, we've generate results from I on of our as revenue Group's to XX.X%. a over impact which X.X% adjusted trade reallocating as as relentless expenses, ongoing efficiencies, billion XX% down EBITDA certain Digital lower our were cost and X.X% year out feed political. excluding successful well $XXX build fourth Digital down the focus Audio XXXX, XX.X% were Within margin. in bad declined a you debt can as programming revenues, see previously, the digital the Multiplatform was were quarter X.X%, the not revenues, year-over-year. the The grew non-podcasting border margins million, mentioned to

Group, fund X%, time than actually & have that in Group the now $XX the growth EBITDA, in Digital XX% adjusted expenses year-over-year, which rate adjusted the large since is approximately Group's Audio period. QX EBITDA Group, adjusted Services was approximately helped Audio XX% reduced part, same over to as QX a EBITDA digital $XX the Group, prior XX.X% as our XXX% down adjusted were XXXX, we to has and the from Media approximately in growth Group grew XXXX.Turning by million, of of Multiplatform fact, EBITDA In from million Multiplatform Multiplatform $XX Audio the Digital as our our in And whose down higher million, us has, XXXX up by year. revenues approximately

peaks political the approximately million. prior balance total as television of debt impact down Media Media liquidity revenues, $XXX Services net billion which advertising. Group's cash outstanding, impact includes due revenues and had & our $XXX Excluding Services year-to-year which and has were end, of greater of a the quarter to of reminder, $X.X troughs And the At million, a the also the year Audio Audio quarter, & includes in was Group political X.X%. we

quarter net goal in long-term EBITDA EBITDA Our to progress to Xx. expect Xx. XXXX, was towards we of debt-to-adjusted debt adjusted approximately make And of net a our ending ratio ratio

As material and have maintenance no past maturities until we May no covenants XXXX. highlighted calls, on debt

cash a developments the principal of repurchased million our meaningful opportunistic (sic) our discount structure.In capital responding and generating Unsecured $XX both to continue free we par opportunities at [ their balance and Notes surrounding Notes earnings market value, to our We from be X.XXX%Â Senior accretion. cash to flow million. Unsecured of aggregate of ] in outstanding QX, in notes brings quarter, X.XX%Â Senior to $X.XX reducing $XXX In and approximately million to This of free generated $XXX these billion amount $XXX results total $XX we fourth interest approximately of savings million flow. the annualized the million, repurchase

our QX. Turning outlook now for to

The January first X% revenue start quarter down with slow year-over-year. got to off a

single pacing QX for However, both pacing be low seeing currently XXXX the we well. to QX, slightly we are And and we than are down low seeing are momentum pacing expect is momentum X% now we that continuing digits, which flat in year-over-year. our to up as into down X% are better single February and and which digits revenues March, up quarter,

this validation sign we that for So and an us trajectory throughout positive further progress anomaly a as year. we was the January see as

$XX year $XXX prior in to EBITDA of generate range to segments million the million first for quarter quarter.Turning expect to $XXX compared million to individual the the We adjusted in QX.

We to mid-single Digital Audio be the revenues Group digits. up expect

Audio Multiplatform down Group be to mid-single Services approximately up the and XX%. We digits, revenue we expect revenue the to Group's Media expect be &

subsequent flow of flow we free flow, always free free as terms cash to in lowest XXXX, In quarters. reminder, generated free cash returning cash before flow quarter all And our QX in negative QX is positive generation of cash a year. the

items our free affecting to of some full Turning cash flow. the year

be cash of in taxes XX% to approximately EBITDA We XXXX. expect our adjusted

estimate be Our expected expenditures full be million. is of $XX approximately capital will $XXX to year restructuring expenses million. approximately XXXX Cash

improvement our of While election, in BMI.As XXXX of marketplace. in we we broader and to see growth a business And as mode continue cash mentioned, the as Bob back expect signs million stake flow to million reminder, we the in $XXX of XXXX, we of during throughout last our generated revenue. political advertising presidential equity proceeds calculation, $XXX free the not in from February be sale received cash included

with and expect in our year-over-year So entire single work performance. EBITDA behalf deliver see our a technology members the every their adjusted we improvement in Bob finally, team, to And combination on want now communities efficiency our to I given iHeart power ongoing day. our significant to of at our who efforts and and management team of for thank for disposal,

Now take you. we'll to operator your turn it questions. over to the Thank

Operator

Thank Instructions]. you. [Operator

Your first (sic) is BofA from Reif the Jessica [ question with of ]. Securities BoA line Securities

Jessica Reif Cohen

questions A competitors' do what have another about talk Can changes couple terms you question. share And some is industry, you're what like the And strategies? podcasting. the your on seeing think of of then you growth, of now? in implications just I of in overall

Bob Pittman

biggest and a the I growth today, Look, that of Well, there thanks, there, almost we sign any business it the and in don't it's vector subsiding. to show are them measurement, number be by out Jessica. see media think, podcasting, any

on, a clear really business radio. it's said we've very As to -- early a we adjacent think

Some would demand. like radio has the demand, argue that's on gotten rational. available sort programming marketplace I more And it's of think radio a with lot on

most I for all and people sort think turns subscriptions, with us hopes most we've pay, superior trusted. hosts advertisers. Jessica, dealing of to you is that, which the have exclusivity, CPMs, a rational The basics sort be ideas both very to It's sector every about who is The about to about profitable, off, helpful premium it, podcast it day, the of CPMs, talent fallen about people obviously would it terms and by marketplace tons wonderful by podcast sort metric back attention. of garners are of superior have paying gotten in of wayside, because into and this continues measurements, click money dealing one clear with metric. have

think And marketplace. of we that's sort at way the the so I look

hard it's share, of terms understand. In to

you think But marketplace. we're the we're of sort that. That's think the I out, more of in it. numbers, that's works true to XX% lot profitability, terms it's take of have get people -- hard of I denominator said sort on if the than in share it where some obviously, a

Rich Bressler

in investor your couple about Yes, quick Jess. in terms just a I up there and want a go streaming amount time that, of spent. people interesting, more then podcasting shows have the that the deck, It's makes question. it that services. the than but Xx them way, in us, slide the things next By of just ad what's employ music to to scale of of we double not the

So in terms of its breadth out there, not just ourselves.

that X I talk would Bob's people go think $X all year. X to of $X is out, U.S. for billion, talking it out, The dollars. revenue about, other last know, say pool X thing about years billion, was $X.X podcasting, are estimate don't that dollars the billion, I $X going advertising People the podcasting billion whether billion, you about years $X Most about predict to kind out, years point. of

the kind we I -- that about one podcasting are, the important advertisers days. success, early which to started really years we're I and a success really interesting growing think that of other point just have think state of in advertisers, of podcasting, seen. it is the things -- just of bring with most have, any And like to any it's tells And think this so just when is the start in always that's ago. come it's the you've but to there's why our reason dollars.And doing engaged couple podcasting don't that to what's say, big level financial we Jess, the really obvious, look medium all and ever not debate size you finally, I TAM with of big engagement. even long So terms that but the I'd of audience, at I a And an because and, you to the does big us time important been of

all started listened is I is something podcast the that number think through. XX% of way to every the like

you in the the make because about effectiveness that growth advertisers. surprise is podcasting revenue of So it no if with connection,

Bob Pittman

if whatever out we've having more be which finds like, been they're is scale obviously a with and in it's broadcast ad really that we'll future, one the one they and us, really it to reach, able thing, very to on audience an someone that the engaged, greater podcasting, data as them, audience of tech our in will advantages that's that such strong at important and add a building the add would reminder, the find podcast, allow of the doing. hand radio I analytics, just Jessica, to of platform

as into us, it directly So our podcasting extend power the radio broadcast promises of well. for to

Jessica Reif Cohen

And on optimistic guys mean, seem Great. then progresses. the you I relatively year is as just follow-up the advertising,

you what strength or just us last weakness dive deeper give marketplace you're of certain categories? can little Rich, terms in So one And seeing in maybe a then, in what on the just follow-up.

Xx You of frame get to you but there? goal is time leverage, the what reiterated your do think

Bob Pittman

Well, we question, if seeing can we recovery this but January think We're and the February last a called to and in in advertising slow, in We -- be Jessica. thought is strengthening, the was it second it quarter. the little that would it's I up seeing in picked advertising on jump year, year. March year

we're will that it. be of that, optimistic and seeing a beneficiary we're So that

Rich Bressler

of interest leverage to received this we the helped, million, progress getting make sale Look, in in about -- to million And we our ratio, $XXX do and given the a of has me time in excuse Yes. $XXX towards Xx equity we significant of to in also that. approximately terms expect we and -- year highlighted release which terms specific frame. haven't BMI,

a focus cash performance, of and the excuse our cash and me, this flow, generation free free continue generation base asset flow. to on our at to look company be generator, of we'll you -- when great So continues

Operator

the from Wells of is Cahall Steven line question next Fargo. with Your

Steven Cahall

make want that So from single their it's first, back And you point the impact political it's that's And up a advertising hadn't market pacing any can to I follow-ups. have January to just whether couple down improving, there's you if correct. areas comments particular on digits X% all coming to February, sure market, seen. in I national categories inflection that particular if underlying are from low that, of Wondering the clarify, so excluding to of those then March. driving to just that's kind that whether

Bob Pittman

seeing, across of Sure. we're others. category a more stronger as of have Look, think our board, groups no will reminder, that's be than advertisers But Obviously, ad I some the advertising. strengthening of seeing than a revenue. X% we

February, that we're I diverse business do as start think and a think, the in it And just month stuff. pretty are year. in people everybody growth for and It's the you for slow. out to their little So There growth the But our driven year here. discussions variables picked terms is off in I by think others, can be of external categories. lot marketplace, again, of exposure with listening that to advertisers, a I reason, January slowest whatever looking And heard up I in our think advertising. of of is the

Rich Bressler

Rich. political that's look it's as Steve, to even QX, I see They're no than into to expect we but we add might are -- advertiser that there's a reminder, QX on overall have Yes. immaterial is overall. small. as dollars forward we the just more I to growth Bob we this comment in -- we in of they categories also company. some a mentioned very thing think terms political, go also individual as there only we X% other And The don't reminder, continue

QX, in in a going Bob expect. we to really and But be to itself you that year. his this robust as political think QX manifest I stated remarks expect that's

Steven Cahall

seeing was just ex you Is your a just Great. on a in podcast, I flat seen pricing continued in in growth help because what issues the QX. TikTok. lot of bit it us ad-supported on 'XX. And understand down things any then engagement there? think there? pressure we've It was are music platforms Are digital trends you like there Could

trends in just So love digital to the podcast. understand ex we'd

Bob Pittman

we talked I some app quarter. going of point make come in is profitability. products our you've the business in rebalancing digital would One last that of margin about I seen that the And mix this think for year, through

Rich Bressler

money great in at Yes. think, amount look I we ex us. be digital growth we We comp when And say, with last the for a look, at we still other you a last engine we podcasting, just as year reminder, were a looked had, that, significant had continues thing obviously, which comparison. tough year coded would because to a dealing of

terms you calling think But kind this that reach a to of is out, reminder, asset it about, terms of XX%, here in out, by and of engagement, as look look back TikTok, worth resiliency, of, and been it's the terms mentioned I overall in in of big you I'm way, not has which our we're at grow." level out. So TikTok just person the again, here in and And country. of base reach a take you and what "Okay, over kind the mid-XX% do our take help somewhere you we ourself kind of reached could over just, of the that we

is to can head always broadcast from the a our was away technology, even reach think X. going is the the big commented [indiscernible], X one unique with it digital the company as level but asset in got to do to Bob inventory and obviously to people of ability, of and podcasting question I reminder, have full that, a to for continues players circle, world to our we've second our bring consumers, in as many, of do just we any Jessica. think everything, be reach, terms in a which I of terms a engagement, we way the do of remember in response just our American, to what on terms have the at But cohort, on of So

Steven Cahall

in and to in year. you a discussions? 'XX. timing growth couple a when I lot in you and lastly, just walls then 'XX, those 'XX this What's engage is a start And more have maturities know then the of

You'll, but based you'll probably leverage discussions you'll with at higher cash consensus, more on a lot level still deleverage a EBITDA, those entering flow, than generate free your target. be of

how we about risk and kind of just opportunity do So think there?

Rich Bressler

focused surprise reiterate, foremost, this not don't you comment to I say, the and and on we think our would has evaluating Steve, expect. of and And of changed we maturities, sheet, not to to first all, of I'm significant changed. Well, are all you. you to our we're free flow. continuing and focus and refinancing anything But will on as balance execute specific. at focus them, the on generation continue But going our objectives haven't safe cash our

Operator

Your line Morgan next Swinburne with of question is from Stanley. Ben the

Benjamin Swinburne

'XX? are the you in given should you're And wanted nice get how some on I kind you thinking margins? thinking color Rich, of expense then the expansion expense clarify or how trends margin assume the about growth political Any restructuring. year. about on just I to

that taking year's additional Or there that actions tied I in million. cash $XX are are [indiscernible]. activity? restructuring that last to announcing mentioned just had then cost place today You you're Is And XXXX?

Rich Bressler

Thanks, Ben.

we -- -- excuse we take last first. as estimate think announcing we're But let into the new remarks, of forward of -- So that, in both provide maybe go about again, opening go continuing we programs, of cost giving to exactly couple an think quite cost, think we -- we've obviously terms to frank, our the of people and today. you -- think X the at on on as and new invested today. 'XX, over I AI we've he if talked in digital AI businesses our I of one on, we efficiencies. Bob's things. at about X, look would years, not did we've transparency, X want programs efficiencies, if growth look cash [indiscernible] called To of I with And talked back our in be our with the really our terms taking the me No, you you me, rigor just your beginning But base of to advantage X, focus today, track higher apply I just, look XXXX, that any terms technology. you AI the since if not done what last what look that company words at continued podcasting. reduced last Multiplatform remarks, what the by And in We've is it's everybody rigorously we overall over years, at X%. history actually expense including called it's side, uses our Group and look

business, flow I EBITDA EBITDA think up free I remind -- I'm generated a we sorry, the XXX% XXX%, of again, andÂ state business. company cash us, And gave that said, a back number upfront just one period get a we I'll lot is during EBITDA that cash It's over period we've that to digital us, to has as of we the cash growth time.And and it's get lot it's just to is would of And Multiplatform time. but we terms margin in low -- to don't we political. business. is margin look as just into a not highest you advertising expect where the the -- growth business of be clear, the XXXX, And obvious, great believe of if remind high business. Multiplatform a growth. reiterate great single-digit before, believe our And free flow we've said high we apologize, it's political is in categories this I of

Benjamin Swinburne

Got it.

tax stuff in There's just tax year. us any helpful. cash for curious, of rates happening, or guidance a as very not beyond well but tax was wondering changes. for And have about potentially lot happening helpful 'XX you I happening around That's guys you advice thinking if Congress maybe cash then the some iHeart. on gave for just Okay. I'm

Rich Bressler

reading out that advice that but mean, We're of said is and about I not we EBITDA the potential there, impact changes us have but changes at assumed potential any this and all least no proposed look, -- on, the we efforts we've think favorably, various point. changes, about going at all been of we've very cash assumes XX% which of of that the could the some aware changes No. taxes. I

Benjamin Swinburne

it. Got

Okay.

Operator

Your next with Goss question Jim of from Research. Barrington the line is

James Goss

conference encouraging not in Audio on to that Digital this you your in for will several to some any is It also thinking I'm on ultimately, potential? that the in through that's as the in Is the drew if the the a sector. of you years the the feel gain you was for growth steady -- year. are driving margin be this And continuing just see go Group trend issue, but a X-year wondering or and those attention what have upside AI beyond? might margin you improvement thoughts

Bob Pittman

Let TAM growth first as also let inventory, able the TAM, the of is expanding are And probably digital is growth we Audio see part our too, think it within benefits to technology expand, broadcast through our And digital Group. well. radio take into it continuing me obviously, so inventory, adding that we radio and the that, the Digital strategy we the the overall. other, in eventually, to that are that and broadcast participate I'll hit to that, our digital the get of from to our we Rich

Rich Bressler

I'm sorry, Jim. And Yes.

second part? second question, Your

Benjamin Swinburne

some in the margin and in thought improvement you upside the margin just And mind? the drivers what -- have of the did

Rich Bressler

data, think, you digital out repeat XX% we that. I to you and TAM it. always -- EBITDA model margin the And to when kind progress Well, I for look, we've our always about the we've at continue as great towards business. look of about talked to apologize think Look, make numbers on you asking as

in But some data and the growth take Group, it to context return it about which, around capital and of we've growth in that demonstrate we more will view put rigorous allocation our engine. from allocating real expense the to capital highest take that is been the of AI, and it something little areas. Multiplatform just again, advantage that on to I look your the do is we on Ben's And Cost to first constant time, a like efficiency comment to technology and really a bit and again, the and back for cost and question. previous to doesn't of reduction when our a questions help it. -- think, mentioned continue So and rigor of away terms put bigger trying

but margin So XX% saying that other further. get than comment to Digital I Group, expect Audio any an wouldn't on basis, the EBITDA I us for annual to

Benjamin Swinburne

it your could although a Okay. the talk the element about to with did in the lastly, talk elements business. and the envision and websites, with you media, broadcast wonder almost if within I core the businesses, would you role business, social And it's digital the broadcast. you becoming broadcasting supportive essentially about supportive maybe the seem, growth other

Bob Pittman

audio our have than unique higher the XX% Sure. we close. We and than reach of -- no incredible double comes double the broadcast and our business, of That's network, Look, the digital AM/FM Americans It's heart at in with it, space Google. more TV assets. Facebook one reach. this and broadcast networks,

to I the real a is to that I the you to, fundamentals tell if business marketing, because certain more of a people the everyone more turn the percentage go have. I'll So advantage my will message of basic And we reach is, consumers. customer. We can marketing a tell have

advertising. with that looking broadcast so will been look radio We to are in advertisers not major our broadcast we have platform have the valuable.The problem to think radio. consumer happen. how the to that selling platform the that developing inventory digital benefit we the -- that's who that has So the for us like allows reach, inventory it And been has has are know been the not we're technology consumer, that's

reach, able audiences. So reach has in broadcast Rich Nielsen kind that our reach, well ability the to mind consumer advertising being of that one, radio and and opportunity because that as cohorts, sales not doing to just specific extraordinarily a huge for same earlier, provide to with our two, upside of, talked serve

Operator

Goldman line is with question Laszczyk Stephen the from Sachs. next of Your

Stephen Laszczyk

you political, shift adoption budget within on podcasting. I then podcasting is and of Bob, on first markets. out you how I big for opportunity you do called advertising at a on opportunity can you guess, as their more for think in as a one audio what is one this for then the think podcasting, bit year? And you're of of the are also incremental something an And talk a seeing this non-English in terms Maybe mix looking the whole? little political think or campaigns it about

that little could to in and could become stack markets contributor funnels talking podcasting. at revenue think and where for that if side time the brought when you a on and tech about a curious start the in together you you that Just those supply-demand pieces of meaningful you the seeing you're spend terms

Bob Pittman

Well, let political. me start the course, biggest for of with political. We think radio that, probably opportunity is broadcast

to to candidates that. have And the has voters. the the and to issues reach ability -- we reach TV's people do As the have have declined, with

we're to advertisers the the need. cohorts, very we at look closely now of And which with that and people. analytics available, data have able which serve groups Now political

year. think that us we substantial political with So this helps

The influenced leaders, else, That other their somebody people that the one influences thing voters of people in to X% household, means the at et say, of are by coworkers, religious remember their people me." XX% is only gym, cetera. "No

reaching if targeting, who recognized just the you're basically The that's I the radio news target, all the message is broadcast if else when radio looking think and target hears So at broadcast buy voter, are targeting great people and their on them. they well. the they've this, not not as you're everybody about a you cohort -- influencing

the -- can have influence will be influencing hopefully, the them voter. people and will that So message

that's So important. very see we

with that growth big of podcasting, Clearly, year the about right a and You're podcasting. there opportunity would is podcasting political for probably and area well. impact this there, as be

Rich Bressler

on And to talk you about -- was something want translation?

Stephen Laszczyk

podcasting. in The non-English opportunity

Bob Pittman

that level it terms gains to to better, the roll have but probably in any this experimenting, it fast-pace how we'll the earnings and but we there, be it have it's we it's "Let's able it not a year, that quite say, in stuff anticipate, to out," be couple about making We yet, think lot the get we getting I need to projections probably been of quality, of we'll next and out of know we'll more monetize quickly don't quality, get calls.

Rich Bressler

I AI. that of to going AI to translation. forward. efficient but year change not By that it wouldn't that, use I it we one the you your to people is another as when That not AI again, it look It's just really at the is areas -- when way, -- numbers this know, benefit help on significant, as is it's Bob said, from

Bob Pittman

because uneconomic really many many manually the podcasts, It solution. there's episodes or to so is there's so so it AI do is languages, many and

Stephen Laszczyk

Got it.

Rich Bressler

Bob, behalf myself, and any and first management we're story, everybody the iHeart, Thank [indiscernible] you, to and the again. follow-up on for listen Well, at of time the all, taking entire team of questions. to here really appreciate everybody iHeart

Operator

Thank today's for concludes call. This you joining.

disconnect lines. your now may You

iHeartMedia (IHRT) 29 Feb 242023 Q4 Earnings call transcript