Company: IHETW
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001400891-25-000035
Chunk: 30

Company: iHeartMedia, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 1
Chunk 30
---
Revenue$277,287 $238,968 16.0 %Operating expenses(1)190,204 170,841 11.3 %Segment Adjusted EBITDA$87,083 $68,127 27.8 %Segment Adjusted EBITDA margin31.4 %28.5 %

(1) Operating expenses consist of Direct operating expenses and Selling, general and administrative expenses, excluding Restructuring expenses. 

Revenue from our Digital Audio Group increased $38.3 million compared to the prior year, driven by Podcast revenue which increased by $25.4 million, or 28.0% year-over-year, primarily due to a continued increase in demand for podcasting from advertisers, and Digital, excluding Podcast revenue, which increased $12.9 million, or 8.7% year-over-year, primarily due to an increase in demand for digital advertising. 

Operating expenses increased $19.4 million, primarily driven by higher variable content costs, including higher podcast profit sharing and third-party digital costs related to the increase in revenues.

22

Audio & Media Services Group Results

(In thousands)Three Months EndedMarch 31,%20252024ChangeRevenue$59,323 $69,168 (14.2)%Operating expenses(1)43,525 45,473 (4.3)%Segment Adjusted EBITDA$15,798 $23,695 (33.3)%Segment Adjusted EBITDA margin26.6 %34.2 %

(1) Operating expenses consist of Direct operating expenses and Selling, general and administrative expenses, excluding Restructuring expenses. 

Revenue from our Audio & Media Services Group decreased $9.8 million compared to the prior year period primarily due to contract termination fees earned by Katz Media in the first quarter of 2024 and a decrease in broadcast advertising in connection with uncertain market conditions, partially offset by increased demand for digital advertising.

Operating expenses decreased $1.9 million primarily as a result of our modernization initiatives, partially offset by higher sales commissions related to increased demand for digital advertising.

Reconciliation of Operating loss to Adjusted EBITDA

(In thousands)Three Months EndedMarch 31,20252024Operating loss$(25,434)$(34,708)Depreciation and amortization91,901 105,162 Impairment charges2,855 1,508 Other operating expense659 572 Restructuring expenses25,578