iHeartMedia CEO Bob Pittman
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iHeartMedia's podcast revenue continued to grow in the fourth quarter, reaching $132 million in the quarter, up 17% year over year.
The company attributed this increase to continued growth in demand for advertising in media, which led to a 6% increase in revenue in its digital audio group, which includes podcasting. Without podcasting, the group's revenue would have declined by 1%.
Overall, iHeartMedia's fourth quarter revenue was $1.067 billion, down 5.2% year-over-year, but slightly above the high-single-digit guidance range. Excluding last year's fourth quarter political revenues, fourth quarter revenues were flat year over year.
iHeartMedia Multiplatform Group, which includes the company's broadcast radio division and iHeartMedia Markets Group, which has more than 860 radio stations in 160 markets, reported revenue of $684 million, down 7%.
The company reported operating income of $80 million, down from $173 million in the fourth quarter of 2022.
iHeart expects first-quarter consolidated revenue to be flat to 2% lower and consolidated adjusted EBITDA of $100 million to $110 million, up from $93 million in the year-ago period. Digital Audio Group's revenue is expected to increase in the mid-single digits.
“We are pleased to report that our fourth quarter results were consistent with our previously provided adjusted EBITDA and revenue guidance ranges,” said Bob Pittman, Chairman and CEO of iHeartMedia. states. “Digital Audio Group delivered record adjusted EBITDA and margins this quarter, demonstrating the success of this high-growth business. We view 2024 as a year of recovery that will get us back into growth mode. We expect our multiplatform group's performance to improve quarterly over the course of the year, and we expect our digital audio group, which includes our industry-leading podcast business, to continue to grow as a leader in this segment. We will grow and strengthen our position.”
Asked on the earnings call for his thoughts on the podcasting sector, Pittman reiterated that executives believe it's still in the early stages of attracting advertising, but the industry is now “more streamlined.” He said he believed that. He estimated that iHeartMedia has a 20% share in the podcasting market.
“I think the market has become more rational. People who have this idea of subscriptions and exclusivity and paying people a lot of money in hopes of making money someday have kind of fallen by the wayside. I think that's the case,” Pittman said. “And we've been able to get back to very clear basics, which is obviously beneficial to us, because both in terms of dealing with talent and dealing with advertisers, we're able to Because it changes to the market.”
