Festival Revenue Boosts iHeartMedia's Third Quarter, Loss Widens
Stock Falls 41.18% To $2.00 At Market Close
November 5, 2015 at 3:38 PM (PT)
iHEARTMEDIA third quarter consolidated net revenue fell 3.1% year-to-year to $1,579,514, but increased by 0.3% to $1,635,009 excluding unfavorable movements in foreign exchange rates. The revenue report was greeted negatively on WALL STREET, as its stock price fell 41.18% to $2.00 at the close of the market.
The company's broadcasting division saw revenues rise 2% to $846.8 million (up 3% excluding political revenues), attributed to sponsorship revenue from the iHEARTRADIO MUSIC FESTIVAL, barter and trade revenue, and digital revenue, although core broadcast radio revenue decreased; AMERICAS outdoor rose 1%, as did international outdoor when exchange rates were excluded. Consolidated net loss widened from $108 million to $213 million.
“We continue to leverage our entire company’s expansive portfolio of products, media platforms, content and personalities to enable advertisers and partners to engage seamlessly with consumers around the world,” said Chairman/CEO BOB PITTMAN. “At iHEARTMEDIA, we are building on the power of sound, social and mobile to redefine the future of consumer media and entertainment. In September, our fifth annual iHEARTRADIO MUSIC FESTIVAL generated more buzz than ever with over 7 billion social media impressions, ahead of the Big Game Half Time Show for the third consecutive year and ahead of the ACADEMY AWARDS. At outdoor, we continue to prove the value of outdoor to local, national and global advertisers through our industry-leading innovation and creativity.”
“We succeeded this quarter in delivering revenue growth across iHEARTMEDIA, AMERICAS outdoor and International outdoor,” said Pres./COO/CFO RICH BRESSLER. “We continue to strengthen our capabilities across technology and sales, all through a lens of strong financial discipline. Additionally, our past proactive steps in addressing our capital structure needs and upcoming maturities enable us to focus on running the company as efficiently as possible.”