iHeartMedia (IHRT) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Our results have been in the past, and could be in the future, adversely affected by economic or political uncertainty or deterioration in economic conditions and corresponding reduced spending by advertisers
2. 02The success of our business is dependent upon advertising revenues, which are seasonal, cyclical, and may fluctuate as a result of a number of factors, some of which are beyond our control
3. 03In addition, disruptions to our operations and our customers’ operations from pandemics or public health crises may reduce demand for advertising, reduce our advertising revenue and adversely impact our business, results of operations and financial position
4. 04We face intense competition in our business
5. 05Alternative media and entertainment platforms and technologies may continue to increase competition with our operations
6. 06Our business is dependent upon the performance of on-air talent, program hosts, and acquisition of programming
7. 07Emerging industry trends may adversely impact our ability to generate revenue from our digital advertising inventory and materially adversely affect our business, operations, and financial condition
8. 08If events occur that damage our reputation and brand, our ability to grow our user base, advertiser relationships, and partnerships may be impaired and our business may be harmed
9. 09Our business is dependent on our management team and other key individuals
10. 10Our financial performance may be adversely affected by many factors within or beyond our control
11. 11Acquisitions, dispositions and other strategic investments or transactions could pose risks
12. 12We use artificial intelligence in our business, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability, and adversely affect our results of operations
13. 13We have engaged in restructuring activities in the past and may implement further restructurings in the future and our restructuring efforts may not be successful or generate expected cost savings

Risks Related to our Indebtedness

1. 14Our substantial indebtedness may adversely affect our financial health and operating flexibility

Regulatory, Legislative and Litigation Risks

1. 15Extensive current government regulation, and future regulation, may limit our radio broadcasting and other operations or adversely affect our business and financial results
2. 16and we cannot predict the outcome of any outstanding or future letters of inquiry and notifications from the FCC or the nature or extent of future FCC enforcement actions
3. 17Legislation and certain ongoing litigation and royalty audits may require us to pay additional royalties, including to additional parties such as record labels or recording artists
4. 18These requirements, and their application, interpretation and amendment, are constantly evolving and developing and have increased upfront compliance costs and liability exposure in the event of a cyberattack or security incident, which costs are likely to further increase in the future
5. 19Environmental, health, safety and land use laws and regulations may limit or restrict some of our operations
6. 20We may face lawsuits, incur liability or suffer reputational harm as a result of content published or made available through our services
7. 21We are subject to a series of risks regarding scrutiny and regulation of environmental, social, and governance matters

Risks Related to our Class A Common Stock

1. 22We do not intend to pay dividends on our Class A common stock for the foreseeable future
2. 23We are a holding company and rely on dividends, distributions and other payments, advances and transfers of funds from our subsidiaries to meet our obligations
3. 24Conversion of shares of our Class B common stock and Special Warrants into our Class A common stock would cause significant dilution to our shareholders and may adversely impact the market price of our Class A common stock
4. 25Delaware law and certain provisions in our certificate of incorporation may prevent efforts by our stockholders to change the direction or management of our company
5. 26Regulations imposed by the Communications Act and the FCC limit the foreign individuals or entities that may invest in our capital stock without FCC approval
6. 27Direct or indirect ownership of our securities could result in the violation of the FCC’s media ownership rules by investors with “attributable interests” in other radio stations or in the same market as one or more of our broadcast stations
7. 28Our certificate of incorporation grants us broad authority to comply with FCC Regulations
8. 29FORWARD-LOOKING STATEMENTS