iHeartMedia Q4 Revenues Up, Loss Narrows; Bressler Adds COO Title
February 19, 2015 at 5:30 AM (PT)
iHEARTMEDIA, INC. fourth-quarter 2014 consolidated revenues increased 3% to $1.8 billion after adjusting for a $34 million unfavorable impact from foreign exchange rate movements. On a reported basis, consolidated revenues increased 1% to $1.7 billion, attributed mostly to political advertising revenue and traffic and weather revenue, partially offset by lower core local broadcast radio and syndication revenues. The company's net loss narrowed year-to-year from $302 million in 2013 (which included a loss on extinguishment of debt) to $50 million.
In addition, the company has announced that Pres./CFO RICH BRESSLER is adding the title of COO.
Chairman/CEO BOB PITTMAN said, “Throughout 2014, we further strengthened iHEARTMEDIA’s position as the leading media and entertainment company in the digital age -- building on our one-of-a-kind multi-platform assets that deliver unparalleled reach, scale and impact. We continue to develop powerful marketing solutions for our advertising and brand partners while providing the most live entertainment -- with more content and more events in more places on more devices -- to the industry’s most engaged audiences, wherever they are. We once again outperformed the broadcast radio market last year, a testament to our ability to attract advertising dollars to our platform.
"At iHEARTRADIO, we recently surpassed 60 million registered users, growing faster than any other digital radio or music service, and our social media presence is stronger than ever with more than 70 million social followers. At outdoor, we saw steady improvement this year in our domestic business, while continuing our strong momentum internationally. We look forward to more progress in 2015, as we continue to run our businesses more efficiently than ever and launch innovative initiatives across our unique mix of broadcast radio, digital, mobile, social and event platforms.”
On BRESSLER's appointment as COO, PITTMAN added, “Since joining us internally at iHEARTMEDIA, INC. in 2013, RICH has been an enormously valuable partner, both for me and for our entire company. In the last year we have made incredible strides, and RICH has played an important role in operations and finance, as well as strategy, for all of iHEARTMEDIA, INC. We’re delighted to recognize his contributions by adding this title, which better reflects the impact he has made and will continue to make.”
“Both iHEARTMEDIA and our Outdoor business delivered revenue and OIBDAN growth in 2014, even in the face of a challenging first half of the year," BRESSLER said. "Our focus on improving operating efficiency resulted in virtually flat expenses year over year and OIBDAN growth of 3%. We continued to execute on our revenue and efficiency initiatives that are building a strong foundation for our long-term success, and most importantly, our capital markets activities over the past months – including refinancing approximately $1 billion of our term loans and announcing the sale of a select portfolio of tower assets for up to $400 million – have given us even more financial and operating flexibility.”
The company noted that iHEARTRADIO had surpassed 60 million registered users as of JANUARY, a 37% increase year-to-year, with total listening hours up 14% in fourth quarter and downloads and upgrades increasing to 513 million.
iHEART COMMUNICATIONS is also making a private offering of $550.0 million in aggregate principal amount of Priority Guarantee Notes due 2023. The company intends to prepay at par about $532.7 million of its outstanding term loan B facility loans and approximately $8.8 million of the loans outstanding under its term loan C asset sale facility, plus accrued and unpaid interest and fees and expenses.