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iHeartMedia Q2 Net Revenue Down 47% to $488 Million


iHeartMedia
iHeartMedia

iHeartMedia reported second quarter net revenue fell 47% to $488 million from $635.6 million in 2019, mainly due to the impact of the COVID-19 pandemic. Broadcast revenue declined by 56.5%, while Networks was more resilient declining 38.4%. Digital revenue grew 2.4%, led by continued growth in podcasting, which increased by 102.7% YoY. Operating loss was $159.1 million down from an operating income of $181.6 million. Adjusted EBITDA decreased to a minus $29.3 million from $262.9 million. The company posted a net loss of $197.3 million as compared to a net income of $38.7 million in the year-ago period.

"The challenges that we have faced due to COVID-19 were unprecedented and had a severe, negative impact on our revenue in the second quarter," said Chairman/CEO Bob Pittman. "Despite those financial challenges, we retained our strong relationship with the consumer as the #1 audio company in America and the #1 media company in America by reach. As the advertising marketplace is recovering, we are working hard to ensure that we have the products and services to fully capitalize on the opportunity while proactively taking steps to fortify our balance sheet and our liquidity. Finally, I want to thank our employees for their commitment and creativity under such difficult and challenging circumstances."

"In response to COVID-driven market weakness, we acted rapidly and decisively to further streamline our cost structure and capital-spending programs, while continuing to implement pre-COVID cost savings programs through our modernization initiatives," added President/COO and CFO Rich Bressler. "These actions played an important role in minimizing the negative impact on our free cash flow results against the backdrop of the significant revenue declines we saw in the second quarter. We believe that these actions, in combination with our proactive capital structure management provides the Company with sufficient liquidity to operate effectively even in an extended period of economic weakness."

As of June 30, 2020, iHeartMedia had $517.7 million of cash on its balance sheet. For the six months ended June 30, 2020, cash provided by operating activities from continuing operations was $102.9 million, cash used for investing activities by continuing operations was $50.7 million and cash provided by financing activities by continuing operations was $65.5 million.

On March 13, 2020, iHeartCommunications borrowed $350 million amount under its $450 million senior secured asset-based revolving credit facility (ABL) to preserve financial flexibility in light of the current uncertainty in the global economy resulting from the COVID-19 pandemic. During the three months ended June 30, 2020, iHM repaid $115 million drawn under its ABL credit facility.

On July 16, 2020, iHeartCommunications entered into an amendment to its credit agreement governing the $2.5 billion of senior secured term loans to issue $450 million of incremental term loan commitments, resulting in net proceeds of $425.8 million. A portion of the proceeds was used to repay the remaining balance outstanding on its ABL credit facility of $235 million, with the remaining $190.6 million of the proceeds available for general corporate purposes.

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