iHM: iHeartMedia Back In The Black

iHeartMedia, Inc. today reported financial results for the fourth quarter and year ended December 31, 2016.

The San Antonio-based radio, billboard and digital giant earned $106.04 million in the fourth quarter, breaking a string of 27 consecutive quarterly losses, according to the Express-News.

Debt-laden iHeartMedia lost $93.3 million during the same period in 2015.

For all of 2016, iHeartMedia narrowed its loss to $296.32 million from $754.62 million in 2015

Bob Pittman

“We continue to take major steps to transform our iHeartMedia and outdoor businesses into a leading multi-platform, 21st-century media and entertainment company,” said Bob Pittman, Chairman and Chief Executive Officer of iHeartMedia, Inc.

“We are successfully building out new products and services for advertising partners to capitalize on our unique strength with the consumer - such as extending iHeartRadio with new on demand services and to in-home connectivity devices, including Amazon's Alexa and Google Home. In firsts for both industries, iHeartMedia and outdoor are building out their data-rich analytics capabilities and programmatic ad-buying solutions to do business in the same way that the entire advertising industry is heading. At outdoor, we continue to win new contracts while expanding our digital networks for even more innovative campaigns.”

Richard Bressler

Rich Bressler, President, Chief Operating Officer and Chief Financial Officer, said: “We delivered growth in our consolidated revenues, operating income and OIBDAN in both the fourth quarter and full year 2016. At the iHeartMedia segment, fourth quarter revenue growth marked the fifteenth consecutive quarter of year-over-year increases in revenues, evidence of our company's successful transformation. Throughout the year, both our iHeartMedia and outdoor businesses benefited from the investments we are making to develop and deliver new products, while maintaining our tight operating and financial discipline.”

Key Financial Highlights

The Company’s key financial highlights for the fourth quarter of 2016 include:

• Consolidated revenue increased 0.2%. Consolidated revenue increased 5.0%, after adjusting for a $19.8 million impact from movements in foreign exchange rates and the $58.9 million impact of the outdoor markets and businesses sold in 2016.
• iHM revenues increased $40.1 million, or 4.5%. Revenues increased $19.9 million, or 2.2%, excluding political revenue.
• Americas outdoor revenues decreased $17.2 million, or 4.7%. Revenues increased $10.5 million, or 3.1%, after adjusting for a $0.1 million impact from movements in foreign exchange rates and a $27.9 million impact from the non-strategic markets sold in the first quarter of 2016.
• International outdoor revenues decreased $28.4 million, or 7.0%. Revenues increased $22.5 million, or 6.2%, after adjusting for a $19.9 million impact from movements in foreign exchange rates and a $31.0 million impact from the sale of our businesses in Turkey in the second quarter of 2016 and Australia in the fourth quarter of 2016.

The Company’s key financial highlights for 2016 include:

• Consolidated revenue increased 0.5%. Consolidated revenue increased 3.4%, after adjusting for a $47.6 million impact from movements in foreign exchange rates and the $125.4 million impact of the outdoor markets and businesses sold in 2016.
• iHM revenues increased $118.7 million, or 3.6%. Revenues increased $80.9 million, or 2.5%, excluding political revenue.
• Americas outdoor revenues decreased $70.6 million, or 5.2%. Revenues increased $39.9 million, or 3.2%, after adjusting for a $7.7 million impact from movements in foreign exchange rates and a $102.7 million impact from the non-strategic markets sold in the first quarter of 2016.
• International outdoor revenues decreased $33.2 million, or 2.3%. Revenues increased $29.3 million, or 2.2%, after adjusting for a $39.9 million impact from movements in foreign exchange rates and a $22.7 million impact from the sale of our businesses in Turkey in the second quarter of 2016 and Australia in the fourth quarter of 2016.

The Company’s recent key non-financial highlights include:

• Expanded iHeartRadio to include two new on demand subscription services: iHeartRadio Plus and iHeartRadio All Access. These two new services use on demand functionality to make radio truly interactive and are available on iOS and Android with iHeartRadio All Access now also available on desktop and select consumer electronic devices.
• Announced the coming integration of iHeartRadio into devices across in-home connectivity, including Google Home and Samsung Family Hub; wearable technology, such as Samsung Gear S3; and mobile applications, including DISH Music and Speak Music Melody.
• Achieved 96 million iHeartRadio registered users, growing 21% year-over-year, with iHeartRadio's cumulative downloads of 1.3 billion including upgrades, as of December 31, 2016, and total listening hours up 11% for the full year as compared to the prior year.