iHeartMedia, Inc. (IHRT, Financial) has announced the appointment of David Hillman as Executive Vice President, Chief Legal Officer, and Secretary. Hillman will be responsible for overseeing the company's legal framework, which includes compliance, regulatory, and corporate governance functions. His role also encompasses managing iHeartMedia's Government Affairs, Business Affairs, and Privacy teams.
Hillman brings extensive experience in the media sector to his new position. Before joining iHeartMedia, he was the Chief Legal Officer and part of the founding leadership team at Venu Sports, a collaborative sports streaming initiative involving ESPN, FOX, and Warner Bros. Discovery. His previous roles include serving as Executive Vice President and General Counsel of CBS Sports and CBS News & Stations at Paramount Global. He also held the position of General Counsel at Simon & Schuster and Westwood One.
Bob Pittman, Chairman and CEO of iHeartMedia, expressed confidence in Hillman's broad media experience and specific understanding of the audio industry, viewing him as a valuable addition to the company's executive team. iHeartMedia continues to solidify its position as a leading audio company in the United States.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for iHeartMedia Inc (IHRT, Financial) is $2.83 with a high estimate of $4.50 and a low estimate of $1.00. The average target implies an upside of 177.78% from the current price of $1.02. More detailed estimate data can be found on the iHeartMedia Inc (IHRT) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, iHeartMedia Inc's (IHRT, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for iHeartMedia Inc (IHRT, Financial) in one year is $3.27, suggesting a upside of 220.59% from the current price of $1.02. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the iHeartMedia Inc (IHRT) Summary page.
IHRT Key Business Developments
Release Date: February 27, 2025
- Adjusted EBITDA: $246 million, up 18.2% year-over-year.
- Consolidated Revenue: Up 4.8% year-over-year; excluding political impact, down 1.8%.
- Digital Audio Group Revenue: $339 million, up 6.7% year-over-year.
- Digital Audio Group Adjusted EBITDA: $119 million, up 2.1% year-over-year; margins at 35%.
- Podcast Revenue: Grew 5.7% year-over-year.
- Multi-platform Group Revenue: $684 million, flat year-over-year; excluding political impact, down 5%.
- Multi-platform Group Adjusted EBITDA: $150 million, up 5.9% year-over-year.
- Audio and Media Services Group Revenue: $98 million, up 44.7% year-over-year.
- Audio and Media Services Group Adjusted EBITDA: $49 million, up 136% year-over-year.
- Net Debt: Approximately $4.52 billion.
- Total Liquidity: $686 million, including $260 million in cash.
- Net Debt to Adjusted EBITDA Ratio: 6.4 times, expected to be 5.5 times by year-end.
- Free Cash Flow: Negative $24 million; adjusted for debt transaction expenses, $111 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- iHeartMedia Inc (IHRT, Financial) successfully completed a comprehensive exchange transaction, extending debt maturities by three years and reducing overall debt.
- The company achieved over $200 million in annual cost reductions, resulting in net savings of approximately $150 million.
- The Digital Audio Group generated record revenues of over $1.1 billion and adjusted EBITDA of approximately $380 million for the full year.
- iHeartMedia Inc (IHRT) maintained its position as the number one podcast publisher in the US, with significant growth in podcast revenues.
- The company launched a redesigned iHeartRadio app, receiving positive feedback from listeners and enhancing user experience.
Negative Points
- Consolidated revenues were below guidance due to lower-than-expected political advertising revenue and a slowdown in non-political advertising.
- The company's free cash flow was negatively impacted by fees and expenses related to the debt transaction and modernization program.
- The Multi-platform Group's revenues were flat year-over-year, with a decline in revenues excluding political advertising.
- The Audio and Media Services Group's revenues, excluding political impact, were down 1.6% year-over-year.
- The company faces uncertainty in the advertising market due to potential tariffs, inflation, and higher interest rates, impacting future revenue projections.
