According to the Express-News, iHM's third-quarter loss, its 29th over the last 30 quarters, widened from a $35 million loss during the same three months last year, the company said in releasing its earnings results.
Revenue dropped to $1.54 billion in the third quarter, from $1.57 billion a year ago, a 1.9 percent decline. Cash flow decreased 14.3 percent to $402.4 million in the third quarter from $469.8 million in the same period last year. Total company debt rose during the third quarter to $20.6 billion as of Sept. 30 from $20.4 billion as of June 30.
“Our current forecast indicates we will continue to incur net losses and generate negative cash flows from operating activities as a result of our indebtedness and significant related interest expense,” the company said in evaluating whether it can continue as a “going concern.”
iHeart is in negotiations with lenders and bondholders to reach a pre-bankruptcy agreement that extends bond maturities and gives it more time to repay notes that start maturing early next year. The company warned in the spring that it might not be able to make debt payment by the first quarter of 2018.
Much of iHeartMedia’s debt stems from 2008 two Boston-based private equity firms, Bain Capital Partners and Thomas H. Lee Partners, bought 70 percent of the company, which was called Clear Channel Communications at the time. About 30 percent of the company remains publicly traded on the over-the-counter market.
“As a true multi-platform, 21st-century media company, we continue to expand the innovative ways for us to engage consumers and to reinvent how we do business with our advertising and marketing partners,” said Bob Pittman, Chairman and Chief Executive Officer of iHeartMedia, Inc.
“At our iHeartMedia business, in addition to building out a data-first p7rogrammatic advertising platform, we are continually growing our content offerings, including iHeartRadio's podcast platform, with virtually all of the top 200 U.S. podcasts. At Americas outdoor and International outdoor, we are both expanding our digital footprint and enhancing our automated ad-buying and data analytics and attribution capabilities to generate better results for our partners.”
Rich Bressler, President, Chief Operating Officer and Chief Financial Officer said: “Our consolidated revenues and operating income declined in the third quarter. However, the iHeartMedia segment extended its year-over-year revenue growth to eighteen consecutive quarters. We continue to be committed to balancing financial discipline with investments in data, programmatic and attribution to grow our businesses while staying focused on improving our capital structure.”
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