iHR's Bressler: "Our Business Model Is Simple"

"Our Buissess model is simple. Create deep relationships with consumers, and then rent the use of those relationships to our advertisers. We reach consumers through all of our platforms, outdoor, broadcast radio, events, digital, mobile and social, and our strong results in the first quarter showcase our progress."

That's how Richard Bressler, President COO and CFO for iHeartMedia started last week's conference call to discuss 1Q 2015 Earnings.

Then, he quickly told anaylysts that radio "still underutilized and under-monetized by advertisers, and we are taking aggressive steps to change that by focusing on making our company as advertiser-friendly and data-driven, as the major digital-only players."

Richard Bressler

He re-iterated that AM/FM radio remains the overwhelmingly preferred audio and entertainment option in the car as highlighted in a recent research study conducted by Ipsos, a leading global independent marketing research company.

While consumers use new streaming services, virtually all consumers, 99% are comfortable with the current AM/FM in car radio operation, and 91% of consumers say they actually prefer physical AM/FM radio buttons and controls built into the car dashboard rather than AM/FM being an app that appears in the car's electronic interface.

Other highlights from the conference call:

• iHeartradio: surpassed 63-million registered users in the quarter, growing 34% year-over-year. Bressler noted, the figure does not account for the millions of users, who listen to iHeartRadio's live streaming radio stations, which don't require registration. So the apps total reach is even greater. Total listening hours also continue to grow, increasing 17% year-over-year in the first quarter. 
• In Los Angeles: Bressler called newly-acquired morning talent Big Boy on Real 92.3 FM "a reigning all star of hip-hop radio in Los Angeles and one of the most famous personalities in LA radio Big Boy Kicked Off on Night Real 92.3 by welcoming the biggest names in hip-hop to his show and it’s been a huge win for our LA market. In its first month Real 92.3 became the number two station in LA in the 18 to 34 age group, second only to iHR's Kiss 102.7 FM.
• Debt: He told analysts the company is staying focused on maximizing the value of its business by continuing to improve capital structure and liquidity through capital markets and strategic transactions. As of March 31, iHeartMedia Inc's debt net of cash totaled approximately $20 billion, during the first quarter iHR issued $950 million of $10.625 priority guarantee notes due 2023 and used the proceeds to prepay all remaining $931 million outstanding of term loan B and C. According to Bessler, iHR borrowed a $120 million under the receivables based credit facility for general corporate purposes.