IHEARTMEDIA Reports Second Quarter Earnings Results for FY2023 on August 8th
August 20, 2023
🌥️Earnings Overview
IHEARTMEDIA ($NASDAQ:IHRT) announced its financial results for the second quarter of the fiscal year 2023 (ending June 30th, 2023) on August 8th, 2023. Total revenue for this quarter was USD 920.0 million, a decrease of 3.6% compared to the same period of the previous year. Net income for this quarter was reported as USD -884.5 million, a decrease of 14.4 million compared to the same period of the previous year.
Market Price
The media and entertainment giant, IHEARTMEDIA reported its second-quarter earnings results for Fiscal Year 2023 on August 8th. Initially, the company’s shares opened at $4.2, however, it closed at $3.7, a significant plummet of 16.5% from the previous closing price of $4.5. This negative impact was further exacerbated by their revenue falling short of analysts’ expectations. Subsequently, the shareholders experienced further losses while the company’s market value decreased. The company had been struggling in the past fiscal year due to the global pandemic, with their revenues dropping significantly as a result of the numerous lockdowns implemented worldwide. As a result, IHEARTMEDIA took a major hit in terms of their share prices and ended the day at $3.7. This decrease was mainly driven by a drop in advertising sales due to the decrease in consumer spending as well as fewer concerts and events taking place. To help combat these circumstances, the company is currently focusing on streamlining their operations and cutting costs wherever possible.
Additionally, they are also looking to expand their online presence in an attempt to capture more advertising revenue. Although the news from IHEARTMEDIA was not particularly encouraging, the company’s outlook remains optimistic. With their ability to adapt and adjust their strategies to compensate for the current situation, IHEARTMEDIA is confident that they will be able to turn things around and put their stock prices back on track in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Iheartmedia. IHEARTMEDIA_Reports_Second_Quarter_Earnings_Results_for_FY2023_on_August_8th”>More…
| Total Revenues | Net Income | Net Margin |
| 3.85k | -1.34k | -15.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Iheartmedia. IHEARTMEDIA_Reports_Second_Quarter_Earnings_Results_for_FY2023_on_August_8th”>More…
| Operations | Investing | Financing |
| 279.27 | -138.83 | -270.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Iheartmedia. IHEARTMEDIA_Reports_Second_Quarter_Earnings_Results_for_FY2023_on_August_8th”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.98k | 7.39k | -2.86 |
Key Ratios Snapshot
Some of the financial key ratios for Iheartmedia are shown below. IHEARTMEDIA_Reports_Second_Quarter_Earnings_Results_for_FY2023_on_August_8th”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.3% | -40.9% | -17.5% |
| FCF Margin | ROE | ROA |
| 3.3% | -1717.0% | -6.0% |
Analysis
GoodWhale has performed an extensive analysis of IHEARTMEDIA‘s wellbeing. Based on our Star Chart, we have concluded that IHEARTMEDIA is strong in profitability, medium in asset and dividend, and weak in growth. Our analysis also reveals that IHEARTMEDIA has an intermediate health score of 6/10, which suggests that the company is likely to be able to pay off debt and fund future operations. We have classified IHEARTMEDIA as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Therefore, investors who are looking for a stable, yet growing company may be interested in investing in IHEARTMEDIA. More…
Peers
The media industry is highly competitive, and iHeartMedia Inc is no exception. As one of the world’s leading radio broadcasting and digital media companies, iHeartMedia Inc faces fierce competition from other industry giants such as Salem Media Group Inc, ProSiebenSat 1 Media SE, and IMPRESA SGPS SA. Each company is vying for a greater share of the market, which has resulted in an intense battle for the hearts and minds of consumers.
– Salem Media Group Inc ($NASDAQ:SALM)
Salem Media Group Inc is a media company that provides radio and digital content, as well as other services, to Christian and family-themed audiences in the United States. As of 2023, the company has a market cap of 32.39M and a Return on Equity of 9.26%. The market cap is the total market value of the company, which is determined by multiplying the current share price by the total number of outstanding shares. The Return on Equity measures the company’s ability to generate profit from its shareholders’ equity. It is calculated by dividing net income by shareholders’ equity. Salem Media Group Inc’s market cap and ROE indicate that it is a relatively small company, with a relatively low rate of return.
– ProSiebenSat 1 Media SE ($OTCPK:PBSFF)
ProSiebenSat 1 Media SE is a leading German media company, operating across television, radio, digital, and commerce. The company has a market cap of 1.89 billion euros as of 2023, making it one of the largest media companies in the country. The Return on Equity (ROE) for ProSiebenSat 1 Media SE is 6.31%, indicating that the company is efficiently utilizing its assets to generate profits. This is well above the industry average and showcases the company’s commitment to delivering value to shareholders.
– IMPRESA SGPS SA ($LTS:0M5U)
IMPRESA SGPS SA is a Portuguese media, telecommunications, and energy conglomerate founded in 1924. The company is headquartered in Lisbon and is one of the leading companies in the Portuguese market. IMPRESA has a market capitalization of 27.72M as of 2023, making it an attractive investment opportunity for investors. The company also has a Return on Equity of 6.45%, indicating that it has been able to generate a satisfactory return on the funds that have been invested in it. IMPRESA SGPS SA provides a variety of services ranging from media and entertainment, telecommunications, energy, and others, making it a well-diversified company that offers a variety of products and services.
Summary
IHeartMedia‘s second quarter earnings for the fiscal year 2023, which ended on June 30th, saw total revenue of $920 million, a 3.6% drop from the same period last year. Net income for the quarter was -$884.5 million, a decrease of 14.4 million from the same period in the previous year. The stock price reacted negatively to this news, dropping in the same day. Investors should consider that IHeartMedia’s revenue and income have decreased from the same period last year, and that it isn’t expected to improve significantly in the near term. It is important to factor in the company’s long-term outlook when making an investing decision.
Additionally, being aware of any other relevant industry news or company developments is important when considering investment in IHeartMedia.
