iHeartMedia Expected To Post Another Loss Wednesday

iHeartMedia Inc. isn’t expected to show much improvement Wednesday when the company releases its third-quarter earnings results, which were unexpectedly delayed by a week.

According to the San Antonio News-Express, the company is projected to continue losing money, like it has done every quarter over the last 7 years — with perhaps some slight revenue and cash flow gains over the third quarter of 2015.

Operational deficits and high debt costs will once again erode any potential profits, said Seth Crystall, Debtwire senior credit analyst.

“The third quarter will look similar to the second quarter” when the company lost $278.9 million, Crystall said. “Revenues will be about $1.6 billion, which is slack year-over-year. The radio business is up year-over-year, though. I have that it’s up 2.25 percent.”

Crystall said the company is receiving a revenue “tailwind” from political advertising in a presidential election year, meaning that the 2016 election has boosted ad sales.

Cash flow will be up slightly year over year, from $458 million in the third quarter of last year to about $465 million in the third quarter of 2016, Crystall said.

Total debt, which stood at $20.78 billion as of June 30, won’t change much, he added.

The company’s debt costs remain its biggest burden. The company said it paid $466 million in the second quarter to service its debt. Crystall said the third-quarter number will be about $450 million.

But iHeartMedia has enough cash and liquidity to remain viable, at least for a few more years.

Crystall criticized the company for its lack of financial transparency.

“Keeping track of this company is difficult. That’s why people don’t trust them. It’s hard to understand this company. It’s not a healthy company by any stretch of the imagination,” he said.