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iHeartMedia Revenue Climbs Nearly 10% as Podcast Growth Fails to Lift Profits
iHeartMedia's Q1 revenue rose nearly 10% on podcast growth, but weak advertising and higher costs pulled profits lower.
iHeartMedia posted a nearly 10% revenue increase in the first quarter, but the surge was not enough to fully blunt the drag from a soft ad market. The country’s biggest radio station and podcast distribution company reported revenue of $884 million for the quarter ended March 31, helped by almost 20% growth in podcasting, even as profits came under pressure.
In its earnings release on Monday, May 11, the company said adjusted EBITDA, a closely watched measure of profitability, fell 11.4% to $93 million. Executives pointed to weakness in advertising and marketing expenses that hit earlier in the year than expected. Cash provided by operating activities totaled $93 million, while free cash flow was negative $114 million after operational spending and capital expenses.
With substantial debt repayments set to begin in 2028, iHeart executives said they still expect momentum from podcasting and political advertising in the second half of the year to help them reach full-year guidance of $800 million in EBITDA and $200 million in free cash flow.
The company’s multiplatform group, which includes more than 860 broadcast radio stations and programs such as The Breakfast Club with Charlamagne Tha God, brought in $493 million in revenue, up 4% from a year earlier. But adjusted EBITDA for that segment dropped 33% to $47 million, with an adjusted EBITDA margin of 9.5%.
The digital audio group delivered the cleaner upside. Revenue rose nearly 20% to $327 million, powered by $180 million from podcasts, which was 27% higher than the same quarter last year. Even so, adjusted EBITDA for the segment was flat at $87 million.
Cash on hand came to $135 million for the quarter, and total available liquidity stood at less than half a billion dollars.
The company also moved quickly to shut down questions about reports that it was exploring a merger with SiriusXM. At the start of the Q&A portion of the call, the operator said, “Our company does not comment on rumors or speculation.”
