Key Takeaways

• Revenue Growth: iHeartMedia’s revenue increased by nearly 10% to $884 million in Q1.
• Podcast Performance: Podcasting revenue grew by almost 20%, but it couldn’t compensate for lower advertising income.
• EBITDA Decline: Adjusted EBITDA fell 11.4% to $93 million due to advertising market softness.
• Future Outlook: Executives are optimistic about achieving full-year EBITDA guidance of $800 million.

iHeartMedia, the largest U.S. radio station and podcast distribution company, saw revenue rise nearly 10% to $884 million in the first quarter — but nearly 20% growth in podcasting revenue wasn’t enough to offset disappointing advertising income.

In its Q1 earnings release on Monday (May 11), the company reported that adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) — a key measure of profitability — fell 11.4% to $93 million in the quarter ended March 31 due to softness in the advertising market and marketing expenses incurred earlier in the year than expected, executives said. Cash provided by operating activities generated $93 million, while free cash flow — what’s left over after operational spending and capital expenses are covered — was negative $114 million.

Facing substantial debt repayments starting in 2028, iHeart executives said they were optimistic that growth in podcast revenue and political advertisements in the second half of the year would help the company achieve its full-year EBITDA guidance of $800 million and $200 million in free cash flow.

Revenue from iHeart’s multiplatform group, which includes its more than 860 broadcast radio stations with shows like The Breakfast Club with Charlamagne Tha God, rose 4% to $493 million. Adjusted EBITDA fell 33% to $47 million on adjusted EBITDA margin of 9.5%.

Revenue from the digital audio group was up nearly 20% to $327 million. That was driven by $180 million from podcasts, a figure that was 27% higher than the year-ago quarter. Adjusted EBITDA for the segment held flat at $87 million from a year ago.

Cash balance for the quarter was $135 million, with the company’s total available liquidity coming in at less than half a billion dollars.

The company forestalled any questions about media reports that it was exploring a merger with satellite media company SiriusXM. At the outset of the Q&A section of the call, the operator said, “Our company does not comment on rumors or speculation.”