iHeartMedia Says Revenue Jumped 24.7 Percent During 3Q

iHeartMedia reports consolidated revenue increased $183.6 million, or 24.7%, during the three months ended September 30, 2021 compared to the same period of 2020. 

The increase in Consolidated revenue is attributable to the continued recovery from the macroeconomic effects of COVID-19 and the continuing growth of our operating businesses. Multiplatform revenue increased $103.9 million, or 18.7%, primarily resulting from strengthening demand for broadcast advertising compared to the third quarter of 2020, partially offset by lower political advertising revenue compared to the same period of 2020, which was a presidential election year. Digital Audio revenue increased $89.6 million, or 77.1%, driven primarily by continuing increases in demand for digital advertising and the continued growth of podcasting. Audio & Media Services revenue decreased $9.0 million due to lower political advertising revenue, partially offset by the continued recovery from the impact of COVID-19.

Bob Pitman

Consolidated direct operating expenses increased $54.9 million, or 20.3%, during the three months ended September 30, 2021 compared to the same period of 2020, primarily as a result of the expenses directly associated with the significant increase in revenue. The increase in direct operating expenses was driven primarily by higher content and talent and profit sharing expenses, third-party digital costs, and costs related to the return of local and national live events. The increase in Consolidated direct operating expenses was partially offset by lower employee compensation and other expenses resulting from our modernization and cost-reduction initiatives executed in 2020 and 2021.

"Our strong results this quarter are further evidence of the success of our company’s continuing transformation – data-led, digital and podcast focused, along with the unparalleled audience reach of our broadcast radio assets, and supported by the largest sales force and the only unified ad tech stack in audio advertising -- all with the strong flywheel effect of our scale and leadership position," said Bob Pittman, Chairman and CEO of iHeartMedia, Inc. "These results highlight both the strong growth and potential of our digital business, including podcasting, and the strong recovery and growth potential of our radio business."

"Bob and I are pleased to report our strong top line growth was coupled with continued margin expansion, generating Adjusted EBITDA of $230 million in the third quarter. We remain confident that we’ll be back to 2019 Adjusted EBITDA levels by the end of 2021, and that we will continue to grow beyond that as our investments in high growth areas and strict cost discipline continue to generate profit and Free Cash Flow," said Rich Bressler, President, Chief Operating Officer and Chief Financial Officer of iHeartMedia, Inc.