iHM Q3 Net Revs Down 21%, Posted $32.2 Million Loss

RADIO ONLINE | Monday, November 9, 2020 | 4:45pm CT

iHeartMedia

iHeartMedia reported third quarter net revenue fell 21% to $744.4 million from $948.3 million in 2019. Broadcast revenue declined 29% from $573 million to $404 million, while networks revenue was down 26% from $160 million to $119 million and digital revenue increased 17% from $97 million to $113 million, led by a 74% rise in podcasting revenue. Operating income fell 72% to $39.3 million from $140.8 million and Adjusted EBITDA decreased 41% to $162.1 million from $274.6. The company posted a net loss of $32.2 million as compared to earnings of $12.3 million in the year-ago period.

"I am pleased that we have seen strong signs of recovery this quarter as we continue to address challenges resulting from the macroeconomic impact of COVID-19; in the third quarter, our revenue has substantially improved when compared to the second quarter and continues to improve sequentially month-over-month," said Chairman/CEO Bob Pittman. "As the number one audio company in America, we feel our results this quarter are strong validation of our multiplatform product and revenue strategy, our ongoing modernization efforts and the investments we have made in new areas, like podcasting, where we are the number one commercial podcast publisher and continue to grow our leadership position."

"The early action we took during the pandemic to focus on cost management and maximize liquidity prepared us for a potential protracted recovery scenario, and the fact that we've been able to quickly return to meaningfully positive Adjusted EBITDA of $162 million in Q3 and free cash flow generation is proof of our strict cost controls, of our sequentially improving revenue trends, and most importantly, of the Company's strong free cash flow characteristics," added President, COO and CFO Rich Bressler. "We continue to focus on cost management and maximizing liquidity and we believe that we are poised to take full advantage as the economy continues to recover."