iHeartMedia’s net income in the Q2/2019 increased to USD 21.6 million or 2.4% as compared to the Q2/2018. The company’s net income of USD 11.3 billion during this quarter was driven by a net gain of USD 9.5 billion. This was recognized in relation to emergence from bankruptcy and a USD 1.8 billion gain on disposal of their outdoor business.
The company’s growth in digital revenue was boosted by the acquisition of Stuff Media on October 2018, along with other digital revenue, including live radio and other on-demand services. The digital revenue increased by USD 22.5 million or 32.8% year-over-year, majorly through the growth in podcasting.
This acquisition, however, increased higher employee costs in the fourth quarter of 2018, which was partially offset by lower commissions as a result of a mix in revenue by USD 1.3 million.
The company’s stock on NASDAQ in mid-July at USD 17.
Bob Pittman, Chairman and CEO of iHeartMedia, Inc. expressed how they shall drive-in more revenue in future,
“As we look ahead, iHeartMedia intends to increase our share of radio advertising spend, participate in TV and digital advertising revenue pools, extend our leadership in podcasting and drive sponsorship revenue.”
Overall, the company’s revenue increased by USD 44.6 million, or 2.7%, during the six months ending June 30, 2019, as compared to the six months ending June 30, 2018.
However, iHeartMedia’s broadcast spot revenue decreased by USD 7.8 million, driven by a USD 8.1 million decrease in political revenue. This was resulted by the mid-term congressional election in 2018. This partially offset by increased programmatic buying by the national customers.
The company’s network businesses such as Premiere and Total Traffic & Weather increased the revenue by USD 8.9 million while, the Audio and Media Services revenue decreased by USD 2.9 million, resulting in a decrease of USD 4.1 million in political revenue.
That said, iHeartMedia’s radio segment still was the most revenue-generating machine, accounting to USD 561,172 in this ending quarter of 2019.
During the Q2/2019 as compared to the Q2/2018, direct operating expenses escalated to USD 13.1 million or 5%. This was driven by higher direct operating expenses such as digital royalties, content costs and production expenses from higher podcasting and digital subscription revenue. Operating income too witnessed an increase of USD 0.3 million, or 0.2%, during the Q2/2019 as compared to the Q2/2018.
The Company’s Adjusted EBITDA increased by 3.2% to $262.9 million during the Q2/2019 as compared to Q2/2018.
After witnessing a period of bankruptcy, iHeartMedia, the radio giant, got out of Chapter 11 in May 2019. Their debt came down from USD 16 billion by USD 5.8 billion. iHeartMedia’s increased revenue and overall positive financial performance were brought about by their growth in data and analytics, and podcasting.
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