iHM Reports Consolidated Revenue Dropped 3.6 Percent

iHeartMedia, Inc. today reported financial results for the quarter ended June 30, 2023.

Financial Highlights:

Q2 2023 Consolidated Results

• Q2 Revenue of $920 million, down 3.6%; slightly better than the guidance range of down mid-single digitsExcluding Q2 Political Revenue, Q2 Revenue down 1.8%
• GAAP Operating loss of $897 million vs. GAAP Operating income of $83 million in Q2 2022, which includes $961 million of non-cash intangible impairment chargesNon-cash intangible impairment charges were recorded in Q2 2023 primarily driven by the current debt and equity valuations in the marketplace
• Consolidated Adjusted EBITDA of $191 million, within guidance range of $180 million to $200 million, compared to $237 million in Q2 2022 and more than double Q1 2023 Adjusted EBITDA
• Cash Flows from operating activities of $57 million
• Free Cash Flow of $34 million, Free Cash Flow including net proceeds from real estate sales was $39 million

Q2 2023 Digital Audio Group Results

• Digital Audio Group Revenue of $261 million up 3%Podcast Revenue of $97 million up 13%
• Digital Revenue excluding Podcast of $164 million down 2%
• Segment Adjusted EBITDA of $85 million up 7%Digital Audio Group Adjusted EBITDA margin of 32.4%

Q2 2023 Multiplatform Group Results

• Multiplatform Group Revenue of $596 million down 6%
• Segment Adjusted EBITDA of $162 million down 17%Multiplatform Group Adjusted EBITDA margin of 27.3%

Bob Pittman

“We are pleased to report that our second quarter 2023 results reflected Adjusted EBITDA slightly above the midpoint of the guidance range, and more than double the Adjusted EBITDA we generated in the first quarter, and our consolidated revenue were above the guidance range. The continued positive performance of our Digital Audio Group, led by our Podcasting business, and the significantly improved relative performance of our Multiplatform Group during this soft advertising period, are encouraging metrics for us, and we’re seeing indications of improving macroeconomic trends which we expect to have a positive impact for us in the second half of the year, with most of that impact in Q4,” said Bob Pittman, Chairman and CEO of iHeartMedia, Inc.

“We continue to see macroeconomic improvements in the advertising marketplace and believe they are an indication that our Multiplatform revenues will continue their quarterly sequential improvement and that our Digital Audio Group revenues will continue to grow in the second half of 2023," said Rich Bressler, President, COO and CFO of iHeartMedia, Inc. 

"These improving trends, in combination with our performance in the first and second quarters relative to guidance, along with a presidential election ahead that should generate record political advertising dollars. gives us confidence that if this advertising marketplace recovery continues, we expect to have a strong 2024 with a resumption of our growth story in terms of revenue, profitability and Free Cash Flow generation.”

Audacy Reports Net Revenue Dropped 5.6 Percent

Audacy, Inc. today reported financial results for the quarter ended September 30, 2023.

Third Quarter Summary

• Net revenues for the quarter were $299.2 million, down 5.6% compared to $317.0 million in the third quarter of 2022
• Local spot revenues were down 3%, national spot revenues were down 15% and network advertising revenues were down 5%
• Digital revenues were $64.8 million, up 3% compared to the third quarter of 2022
• Total operating expenses for the quarter were $580.8 million, which includes a non-cash impairment loss of $272.7 million, compared to $468.8 million in the third quarter of 2022, which included a gain on sale of $10.7 million and a non-cash impairment loss of $176.8 million
• Cash operating expenses for the quarter were $276.1 million, down 2% compared to $280.6 million in the third quarter of 2022
• Operating loss for the quarter was $281.7 million, compared to $151.9 million in the third quarter of 2022
• Adjusted EBITDA for the quarter was $23.0 million, compared to $36.3 million in the third quarter of 2022
• As of September 30, 2023, the Company’s liquidity, which includes restricted cash, was $57.5 million

David Field

David J. Field, Chairman, President and Chief Executive Officer, stated: “Audacy’s third quarter net revenues declined 5.6%, in-line with our quarterly guidance as ad market conditions have remained challenging, particularly on national business. Cash operating expenses were down 2%.

"We gained revenue share in the quarter, most significantly in radio in which we have achieved accelerating share growth since the start of the year. We also delivered solid gains in radio ratings share and digital audience metrics while making important progress on our tech roadmap and meaningful expense savings to improve our current and future business model.

"Fourth quarter is currently pacing down 9% on an as reported basis and down 4% on a same-station, ex-political basis. We expect Q4 total revenues to decline by high single digits and costs to decline by high single digits."

Field reiterated that Audac remains in constructive conversations witt lenders to recapitalize the company’s balance sheet to establish a strong financial footing and position the company to capitalize effectively on our growth opportunities. 

"Notwithstanding current challenges, Audacy has established a strong position as a scaled, leading multi-platform audio content and entertainment company distinguished by our exclusive premium content and top positions across the country’s largest markets. We salute our team for their strong work delivering solid growth against our key performance metrics and serving our listeners and customers with excellence.”

Revenue Drops 4.6 Percent At Townsquare

• Net revenue excluding political revenue flat year-over-year, with digital representing 52% of total net revenue.
• Adjusted EBITDA decreased by 12% year-over-year, while digital advertising net revenue increased by 5.5%.
• Strong cash generation allowed for significant debt repurchase and share buybacks.
• Guidance for Q4 2023 projects net revenue between $110.6 million and $112.6 million, and Adjusted EBITDA between $24.8 million and $25.8 million.

On November 9, 2023, Townsquare Media Inc released its financial results for the third quarter ended September 30, 2023. The company reported a net revenue decrease of 4.6% to $115.1 million compared to the same period in 2022. Excluding political revenue, the net revenue decreased by 3.8%. The digital segment of the business, however, showed resilience with a 5.5% increase in digital advertising net revenue. Despite the overall decline in net revenue, digital now accounts for 52% of Townsquare's total net revenue and 57% of its total Adjusted Operating Income.

CNN Cuts Ties With Photographer Seen With Hamas Leader

Hamas Leader Yahya Sinwar and Hassan Eslaiah

Israeli Prime Minister Benjamin Netanyahu on Thursday ripped mainstream Western media for working with photojournalists embedded with Hamas – calling them “accomplices in crimes against humanity” – as CNN formally severed ties with a freelancer who was photographed getting a kiss from the terror group’s leader.

The Ny Post reports Netanhayu’s office tweeted that it “views with utmost gravity that photojournalists working with international media joined in covering the brutal acts of murder perpetrated by Hamas terrorists on October 7th.

“These journalists were accomplices in crimes against humanity; their actions were contrary to professional ethics,” the leader said — demanding “immediate action be taken” by the outlets helping to employ them.

The anger followed a bombshell investigation by media watchdog Honest Reporting into journalists who were there to document the surprise Oct. 7 attack that killed more than 1,400 people, with more than 240 others taken hostage.

CMA Awards 2023: Lainey Wilson Dominates With 5 Awards

Singer and Yellowstone TV star Lainey Wilson came into the 2023 Country Music Assn. Awards as the leading nominee, and she lived up to that advance billing by taking home five trophies Wednesday, including the top honor, Entertainer of the Year.

The CMAs were held at the Bridgestone Arena in Nashville and broadcast live on ABC. It will be streaming on Hulu on Thursday.

Performers on the night included Wilson, Luke Bryan, Kelsea Ballerini, Luke Combs, Kenny Chesney and a noticeably slimmer Post Malone among others.

Wilson was the leading nominee for a second year in a row, boasting a record nine nominations. Jelly Roll was second with five, while Combs and Hardy each had four.

🎸COMPLETE WINNER'S LIST:  HERE

Deadline reports Jelly Roll started the night with surprise guest Wynonna Judd, both singing on the Jelly Roll hit “Need A Favor.”

Wynonna seemed to need a favor to fans watching her performance. Many commented on how unsteady she appeared onstage, holding tight to Jelly Roll’s jacket. She has previously complained of vertigo, and may have suffered an untimely bout.

Combs won for Single of the Year for his cover of Tracy Chapman’s 1988 hit “Fast Car.” It also won Song of the Year, which went to Chapman as the songwriter. Chapman did not attend, but presenter Sara Evans read a statement from her.

FCC Commissioner Blasts Biden’s ‘Digital Equity’ Plan

FCC Commissionerssioner Brendan Carr is blasting President Biden's new plan to achieve "digital equity" as a "breathtaking" government power grab.

Fox News Digital reports Carr said the FCC will vote next Wednesday on whether to adopt the president's plan to promote equal access to broadband internet access service.

A draft of the FCC order said the commission would implement a section of Biden's 2021 infrastructure bill to establish a framework to "facilitate equal access to broadband internet access service by preventing digital discrimination of access to that service based on income level, race, ethnicity, color, religion and national origin." 

11/9 WAKE-UP CALL: Candidates Attack Nikki Haley During Debate

Haley and DeSantis

Former South Carolina Gov. Nikki Haley, who has shown momentum in recent weeks, came under sustained attack in Wednesday’s Republican presidential primary debate as she competes with Florida Gov. Ron DeSantis to be the leading alternative to former President Donald Trump.

She also delivered several of her own shots at DeSantis, who tried to float above the fray, but engaged with her on China, energy policy and a handful of other issues. A confrontation between the two had been brewing, amplified by a closely watched poll that recently showed Haley and DeSantis tied for second in Iowa, where nomination balloting starts Jan. 15.

But second place may not be worth much given Trump’s commanding lead in the polls. After an opening question that asked candidates to make a case against Trump, who skipped the event, the debate centered on testy exchanges between those on stage.

➤HALEY CALLS RAMASWAMY "SCUM": A visibly enraged Nikki Haley derided Vivek Ramaswamy as “scum” during a heated exchange at Wednesday night’s third Republican presidential primary debate after the biotech entrepreneur invoked the former ambassador to the United Nations’ adult daughter to make a point about the social media platform TikTok.  Haley has previously mocked Ramswamy’s defenses for his prolific use of the app, which some Republican lawmakers allege is a tool used by the Chinese Communist Party to spy on Americans.

"You're just scum." GOP candidates get heated debating TikTok banhttps://t.co/qqojCYz23v pic.twitter.com/OM0lyzck1G

— USA TODAY (@USATODAY) November 9, 2023

At the second debate Sept. 27, Haley told the political newcomer that “TikTok is one of the most dangerous social media apps that we could have. And … honestly, every time I hear you, I feel a little bit dumber for what you say.”  When asked Wednesday by conservative radio talk show host and debate moderator Hugh Hewitt about how he can go about banning the Chinese-owned app given his own use of it on the campaign trail, Ramaswamy went after Haley.  “In the last debate, [Haley] made fun of me for actually joining TikTok while her own daughter was actually using the app for a long time. So you might want to take care of your family first,” Ramaswamy said.

https://t.co/uUYzGJGw4i

— NBC News (@NBCNews) November 9, 2023

Winners:

• Former U.N. Ambassador Nikki Haley
• Gov. Ron DeSantis

Losers:

• Former President Donald Trump
• Biotech entrepreneur Vivek Ramaswamy
• Sen. Tim Scott

➤TRUMP NAME TO APPEAR ON BALLOT: Minnesota's highest court ruled Wednesday that former President Donald Trump should be allowed to appear on the state's presidential primary ballot next year, waving off for now an argument raised in an early test case that he had disqualified himself for a second term by attempting to overturn the 2020 election. The decision is a partial victory for Trump, allowing him to stay on the ballot for the GOP primary. Minnesota may revisit the issue for the general election. The court, in a four-page order, said the state's primary election was an "internal party election" and that winning that contest doesn't necessarily place the nominee on the state's general election ballot. There is no state law that bars a political party from nominating a candidate who may be ineligible to hold office, the court wrote.

Sources say Israel is considering a proposal for a humanitarian pause in exchange for the release of potentially dozens of hostages. @MattRiversABC as the Israeli military says forces pushed deeper into Gaza City. https://t.co/hkI2yBxKsV pic.twitter.com/WDMLvVCUeo

— World News Tonight (@ABCWorldNews) November 9, 2023

➤FIERCE FIGHTING IN GAZA: Street battles raged in Gaza City with Hamas fighters using tunnels to ambush Israeli forces, as the United States said Palestinians must govern Gaza post-war, countering Israeli comments that it would control security indefinitely. The Israeli military said its troops had advanced into the heart of Gaza City, Hamas' main bastion and the biggest city in the seaside enclave, while the Islamist group said its fighters had inflicted heavy losses. Hamas' armed wing on Wednesday released a video that appeared to show intense street battles alongside bombed out buildings in Gaza City. Israeli tanks have met heavy resistance from Hamas fighters using underground tunnels to stage ambushes, according to sources with Iran-backed Hamas and the separate Islamic Jihad militant group. Israel struck Gaza in response to a cross-border Hamas raid on southern Israel on Oct. 7 in which gunmen killed 1,400 people, mostly civilians, and took about 240 hostages, according to Israeli tallies.

SAG-AFTRA Strike Ends

Union President Fran Drescher

SAG-AFTRA reached a tentative agreement Wednesday to end a 118-day strike that brought Hollywood productions to a grinding halt and left thousands unemployed for months.

"In a unanimous vote this afternoon, the SAG-AFTRA TV/Theatrical Committee approved a tentative agreement with the AMPTP, bringing an end to the 118-day strike," a representative for SAG-AFTRA said in a statement provided to FOX Business. 

The strike officially ends at 12:01 a.m. on Thursday, November 9, according to Fox Business.

"The tentative deal will go to the SAG-AFTRA National Board on Friday, November 10, 2023, for review and consideration. Further details will be released following that meeting.

It's unclear what the terms of the deal include. Members had been fighting for both short-term compensation and future royalty payments for film and TV performances, in addition to artificial intelligence stipulations.

"This tentative agreement represents a new paradigm. It gives SAG-AFTRA the biggest contract-on-contract gains in the history of the union, including the largest increase in minimum wages in the last 40 years, a brand new residual for streaming programs, extensive consent and compensation protections in the use of artificial intelligence and sizable contract increases on items across the board," the Alliance of Motion Picture and Television Producers told the The Associated Press Wednesday.

Disney to Accelerate Cost Cutting

Nearly a year after returning to Disney as chief executive, Bob Iger laid out his vision of the company’s future, putting streaming and live entertainment at the center, fed by a studio business that he plans to personally help reinvent.

The Wall Street Journal reports Iger told investors in a fourth-quarter earnings call that Disney will focus on four “building blocks” that provide the foundation for future growth: streaming, theme parks and cruises, studios and the ESPN sports network.

Disney said Wednesday it would slash $2 billion more in costs than previously planned as the company sharply narrowed losses in its streaming business.

There are still major challenges to overcome. Disney’s streaming business has lost nearly $11 billion since the launch of Disney+ in late 2019. Its movie studio is in the midst of a box-office slump that has been exacerbated by delays caused by Hollywood strikes, and ESPN is looking for strategic partners as it plans to eventually transform into a streaming-only business by 2025.

Bob Iger

Iger said the studio would focus more on quality than quantity and that it lost some of its focus during and after the pandemic. “We’re all rolling up our sleeves, including myself, to do just that,” he said.

The common thread underlying Disney’s recent challenges and potential opportunities is the transition from traditional media like film and legacy TV to streaming, which has upended Hollywood’s business model and roiled nearly every entertainment company.

In his comments Wednesday, Iger stressed the importance of getting streaming right. The company’s main streaming service, Disney+, added 6.9 million “core” subscribers—those in North America and other markets such as Europe and Asia, excluding India, where it is able to charge higher subscription prices—in the most recent quarter, about twice what Wall Street analysts polled by FactSet predicted. Disney+ added 500,000 domestic subscribers.

The entertainment giant said Wednesday it is seeking $7.5 billion in cost cuts, up from the $5.5 billion it targeted at the beginning of this year.

Warner Bros. Discovery Stock Sinks

Warner Bros. Discovery shares fell Wednesday after the company reported a decline in advertising revenue, a wider-than-expected loss and lackluster streaming subscriber numbers.

Warner Bros. Discovery reported a net loss of $417 million for the third quarter, or 17 cents per share, an improvement from the $2.31 billion, or 95 cents per share, loss the company reported in the year-ago quarter. Revenue rose 2% to $9.98 billion.

The company’s stock was down more than 16% in afternoon trading Wednesday. The slide comes after a media rally late last week driven by Roku and Paramount earnings. Rival media giant Disney is set to report earnings after the closing bell Wednesday.

David Zaslav

Warner Bros. Discovery’s results reflected dire trends in the legacy media industry. Ad revenue in Warner Bros. Discovery’s TV networks segment fell 12% compared with a year earlier, reflecting a decline in audiences for general entertainment and news programming, as well as soft ad trends in the U.S., the company said.

The company also warned of a number of obstacles heading into 2024, including sluggish ad revenue and ongoing impacts from the actors’ strike.

“This is a generational disruption we’re going through. Going through that with a streaming service that’s losing billions of dollars, it’s really difficult to go on offense,” CEO David Zaslav said during the earnings conference call.

The third quarter marked the first full quarter since Warner Bros. Discovery launched its flagship streaming service Max in May, which merged content from HBO Max and Discovery+.

The company reported 95.1 million global direct-to-consumer subscribers, a 700,000 decrease from the previous quarter, and less than the analyst projection of 95.4 million subscribers, according to StreetAccount.

RIFs Reported At Amazon Music

Amazon.com has begun cutting jobs in its Music division, the company said on Wednesday, confirming the latest of several rounds of layoffs over the past year that have affected more than 27,000 employees of the retail giant.

Reuters reports employees in Latin America, North America and Europe received notices that their jobs had been eliminated Wednesday, according to people familiar with the matter. An Amazon spokesperson confirmed the layoff after being contacted by Reuters. She declined to say how many employees were impacted.

“We have been closely monitoring our organizational needs and prioritizing what matters most to customers and the long-term health of our businesses,” she said in a statement. “Some roles have been eliminated on the Amazon Music team. We will continue to invest in Amazon Music.”

No mass layoff filings had recently been made in Washington state, where Amazon is based, California or New York, among the largest employee centers for the company, according to a review of Worker Adjustment and Retraining Notification sites.

The cuts come even as Amazon reported third-quarter net income that far exceeded analyst estimates and forecast revenue in the year’s final quarter roughly in line with expectations. The fourth quarter is Amazon’s most crucial, as it in includes holiday shopping.

Amazon has been quietly trimming jobs, including communications staff in its Studios, Video and Music divisions last month.

Amazon Music, which also includes podcasts, competes with Spotify , Pandora, Alphabet’s Google and Apple in offering unlimited music streaming services for a fee. It raised the monthly subscription price earlier this year by a dollar to $10.99.

Former Grammy Boss Facing Accusations

The former head of the Grammy Awards was sued on Wednesday by a woman who said he drugged and raped her in a New York hotel room in 2018.

The NY Times reports the suit, filed in New York State Supreme Court in Manhattan, accuses Neil Portnow, who stepped down as chief executive of the Recording Academy in 2019, of sexual battery, and accuses the academy — the nonprofit group behind the Grammys — of negligence.

Neil Portnow

The suit does not name the woman, but it describes her as an instrumentalist from outside the United States who once performed at Carnegie Hall. The court papers include redacted correspondence she had with the academy in 2018 regarding her complaint.

The case harks back to a tumultuous period in the Grammys’ recent history, when Mr. Portnow left the institution after saying that women in music should "step up" to get greater recognition in the industry. 

His successor, Deborah Dugan, was abruptly terminated in what she called retaliation for accusing the organization of a range of abuses, including a cover-up related to the allegation made in the new suit. Those incidents shook the Recording Academy and the wider music industry, but the woman who accused Portnow had been publicly silent until now.

SiriusXM Radio Launching Limited Run Dolly Parton Channel

SiriusXM announced Wednesday that GRAMMY® Award winning icon, Dolly Parton, will launch an exclusive SiriusXM channel, Dolly’s Rockstar Radio, in celebration of the release of her new rock album Rockstar out November 17.

Dolly’s Rockstar Radio was announced yesterday as part of SiriusXM’s Next Generation Industry & Press Preview event in New York.

The channel will feature all songs from Dolly’s upcoming album Rockstar as well as familiar hits and hand-picked favorites that inspired the making of the new album. Listeners will hear Dolly’s intimate stories from inside the studio highlighting her favorite collaborations, why she loves rock n’ roll and her favorite memories from her iconic career. Dolly’s Rockstar Radio will also include music from Dolly’s friends and collaborators on her upcoming album including Joan Jett, Stevie Nicks, Miley Cyrus, Elton John, Steven Tyler and more.

Dolly’s Rockstar Radio will be available to subscribers nationwide in their cars on channel 14 from November 15 through November 21 and on the SiriusXM app from November 15 through December 14. Eligible customers can get their first three months of SiriusXM streaming for free.

SiriusXM Radio Launches Kelly Clarkson Channel

SiriusXM announced Wednesday that GRAMMY® and Emmy Award winning singer, songwriter, and television host Kelly Clarkson, has launched a new exclusive year-round SiriusXM channel, Kelly Clarkson Connection.

Kelly Clarkson Connection, which is available now, was announced today at SiriusXM’s Next Generation Industry & Press Preview event.

The new exclusive channel welcomes listeners into Kelly’s world. When tuning in, you will be surrounded by the music she loves, music she’s inspired by, and the stories behind the music from Kelly’s two-decade long catalog of award-winning hits. Besides the stories behind the songs in her own catalog, Kelly will take listeners on a journey through her favorite music and share insights into her favorite artists. Listeners will also hear from members of Kelly’s band, and lots of on-air celebration of Christmas.

Kelly Clarkson Connection, curated and presented by Clarkson, is SiriusXM’s newest 24/7 channel available to subscribers across North America in their cars on channel 12 or anywhere they go with the SiriusXM app. The exclusive year-round channel joins SiriusXM’s artist channel lineup which includes Carrie Underwood’s CARRIE’S COUNTRY, Drake’s Sound 42, the forthcoming Life With John Mayer and more.

“I’m excited to be launching this new channel in partnership with SiriusXM,” said Kelly Clarkson. “Music is such a personal experience for all of us, and I am stoked to have the opportunity to curate a channel of all of my favorites…I hope that people tune in and enjoy it as much as I loved making it!”

“Kelly Clarkson has captivated millions of fans through her music in her decades-long career and has become a friendly face serving up a dose of entertainment and pop-culture to viewers through her popular daytime television talk show,” said Scott Greenstein, SiriusXM’s President and Chief Content Officer. “It feels only natural to expand her world for her fans with her own daily audio experience that only she can create with her own channel, Kelly Clarkson Connection. We are thrilled to welcome Kelly to the SiriusXM family.”