Traffic, Weather, Syndication Drives iHeartMedia Q1 Revenues Up 4%
April 30, 2015 at 5:26 AM (PT)
iHEARTMEDIA has reported financial results for the first quarter ended MARCH 31st, 2015.
“We’re pleased with the growth we achieved this quarter, and continued to break new ground in enabling advertisers and partners to engage seamlessly across all of our diverse media platforms with the announcement of our creation of a new programmatic buying solution, which will bring the power of radio to advertisers through an automated, real-time ad buying platform,” said Chairman/CEO BOB PITTMAN. “In addition, we continue to provide 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. Last month, our second annual iHEARTRADIO MUSIC AWARDS SHOW generated more buzz than ever with 14 billion social media impressions and was rated #1 for 18-49s across the Big 4 broadcast networks that night. At Outdoor, we couldn’t be more happy with our team and the strong momentum we gained in the first quarter.”
“We delivered strong year-over-year growth in both revenue and OIBDAN across the board in the first quarter,” said Pres./COO/CFO RICH BRESSLER. “We also continue to pursue transactions that streamline our balance sheet and maximize liquidity, as well as continually review our entire portfolio of assets to ensure we operate them in the most efficient way possible.”
First Quarter 2015 Results
Consolidated revenues increased 4% to $1.4 billion in 2015 compared to 2014 after adjusting for a $54 million unfavorable impact from movements in foreign exchange rates. On a reported basis, consolidated revenues were slightly up.
- iHEARTMEDIA revenues increased $28 million, or 4%, driven primarily by its traffic and weather and syndication businesses, as well as events. Revenue growth was partially offset by lower core local broadcast radio advertising revenue.
- Americas outdoor revenues increased $9 million, or 3%, after adjusting for a $4 million unfavorable impact from movements in foreign exchange rates. Growth was driven primarily by digital billboards, as well as higher revenues from our Times Square spectaculars. On a reported basis, revenues increased $5 million, or 2%.
- International outdoor revenues increased $25 million, or 7%, after adjusting for a $50 million unfavorable impact from movements in foreign exchange rates. Growth was driven primarily by strong performance in EUROPE, as well as in AUSTRALIA and CHINA. On a reported basis, revenues decreased $26 million, or 7%.
The company wrote, "After adjusting for a $49 million impact of movements in foreign exchange rates, consolidated operating expenses increased $31 million, or 3%, in the first quarter, primarily due to an increase in variable costs and compensation expense associated with higher revenue, as well as higher advertising and promotion. On a reported basis, consolidated operating expenses decreased $18 million, or 2%.
"After adjusting for the movements in foreign exchange rates, the Company’s OIBDAN was up 7.5% in the first quarter compared to the same period in 2014. Included in the 2015 first quarter OIBDAN were $6 million of operating expenses and $4 million of corporate expenses associated with the Company’s strategic revenue and efficiency initiatives, compared to $3 million and $10 million of such expenses in the prior year, respectively. OIBDAN growth was impacted by $2 million of litigation expense during the first quarter of 2015 compared to a credit of $5 million recognized in the first quarter of 2014, primarily related to an $8 million credit for the realization of an insurance recovery, as reflected in Corporate expenses. On a reported basis, OIBDAN was up 6% to $276 million for the quarter.
"The Company’s consolidated net loss was $385 million in the first quarter of 2015 compared to a consolidated net loss of $424 million in the same period of 2014. The decrease was primarily due to higher operating income, as well as foreign currency gains recognized in connection with intercompany notes denominated in foreign currencies and lower income tax expense, partially offset by higher interest expense as a result of higher weighted average interest rates.