Loading...
•
Mar 31, 2020
iHeartMedia Q1 2020 Earnings Report
iHeartMedia's financial performance was impacted by the COVID-19 pandemic, with revenue declining in March after strong performance in the first two months of the year. The company focused on cost-saving initiatives and maintained a strong liquidity position.
Key Takeaways
iHeartMedia reported a revenue decrease of 1.9% year-over-year to $780.6 million, impacted by the COVID-19 pandemic, particularly in March. Digital revenue increased by 22.2%, driven by an 80% increase in podcasting revenue. The company reported an operating loss of $1,730.8 million, primarily due to non-cash impairment charges, and an adjusted EBITDA of $140.3 million, down 10.6% year-over-year. iHeartMedia is implementing cost-saving measures and maintains a strong liquidity position with a cash balance of $646.8 million.
Total revenue decreased by 1.9% year-over-year to $780.6 million, influenced by the COVID-19 pandemic.
Digital revenue grew by 22.2% year-over-year, with podcasting revenue increasing by 80%.
GAAP Operating loss was $1,730.8 million, mainly due to non-cash impairment charges.
Adjusted EBITDA decreased by 10.6% year-over-year to $140.3 million.
iHeartMedia
iHeartMedia
iHeartMedia Revenue by Segment
Revenue by Segment
Audio & Media Services Group Revenue
CapyFin.com Forward Guidance
iHeartMedia is focused on expanding its financial flexibility and ensuring sufficient liquidity to operate effectively during the economic downturn. The company anticipates benefits from cost-saving initiatives and expects to capitalize on the eventual recovery in advertising demand.
Positive Outlook
- The Company believes its previously announced modernization initiatives and other cost saving actions - in combination with the Company’s resilient capital structure - will substantially expand the Company’s financial flexibility
- Provide sufficient liquidity to operate effectively even in an extended period of economic weakness
- Position the Company for solid growth when advertising demand returns to normal levels.
- The Company expects to continue to make key investments in its strategic initiatives related to Smart Audio and Digital, including podcasting.
- The Company also expects that certain provisions of The CARES Act will partially offset the negative impact of COVID-19 on its 2020 free cash flow and is estimating a reduction in tax-related cash payments in 2020 of approximately $100 million.
Challenges Ahead
- The Company’s results for the first quarter of 2020 were significantly and negatively impacted by the COVID-19 pandemic.
- Revenue from Sponsorship and Events also decreased by $10.4 million, primarily as a result of the postponement or cancellations of events in response to the COVID-19 pandemic.
- March revenue declined sharply primarily as a result of a decrease in broadcast radio advertising spend.
- Adjusted EBITDA was negatively impacted by lower revenue caused by the COVID-19 pandemic.
- To the extent decreases in our accounts receivable result in the borrowing base decreasing to an amount below the amount drawn, we may be required to make a partial repayment of amounts outstanding under our ABL Facility.