iHeartMedia Q2 Revs Up 2.4% to $913.3 Million, Earnings Down
|RADIO ONLINE | Thursday, August 15, 2019|
After emerging from Chapter 11 on May 1, 2019 with a streamlined capital structure, iHeartMedia reported second quarter revenue grew 2.4% to $913.3 million from $891 million in 2018. Excluding political revenue, revenue increased 3.9%. Digital revenue grew 32.8% year-over-year, while operating income of $181.6 million climbed 0.2%. Adjusted EBITDA gained 3.2% to $262.9 million. The company posted a net income of $38.7 million as compared to $11.1 million in the year-ago period.
"We successfully emerged from Chapter 11 on May 1, 2019 and are pleased that the restructuring process resulted in a capital structure that matches our successful operating business. We now have an iHeart business that will focus exclusively on increasing our lead as the number one audio company in the U.S. As demonstrated in our results, iHeartMedia's increased revenue and overall positive financial performance reflects the resilience and growth of our businesses and the value of our recent investments, particularly in podcasting and data and analytics," said President/COO and CFO Rich Bressler. "We are focused on building long-term shareholder value through a combination of operational and capital structure initiatives and we are prioritizing de-leveraging in our capital allocation policies."
Chairman/CEO Bob Pittman commented, "There are two segments of the audio sector -- radio, which provides companionship and connection when people want to join the world; and the music collection segment, which people use when they want to tune out and escape the world. As the leader in the radio, or companionship, segment of the audio sector, iHeartMedia uses its unparalleled reach and consumer connection to deliver a compelling experience for our audiences and revenue opportunities across our multiple platforms."
He continued, "As we look ahead, iHeartMedia intends to increase our share of radio advertising spend, participate in TV and digital advertising revenue pools, extend our leadership in podcasting and drive sponsorship revenue."