iHeartMedia revenue up, but losses widen in Q3

US radio company iHeartMedia, which has a local presence through Australian Radio Network, reported revenues were up 2% in the third quarter to US $847 million. 

This rise was due primarily to advertising revenue for its flagship iHeartRadio Music Festival, which was held for the fifth year, in Las Vegas. The festival generated a record 7.3 billion social media impressions – beating the Academy Awards and the Big Game Half Time Show. 

The radio division’s operating income was flat at $326 million. Even worse, the combined net loss of the radio and outdoor advertising business was $221.9 million, mainly due to $454 million of interest expense related to the company’s $20.6 billion in debt. The two divisions generated a total $1.58 billion in the third quarter. 

“We continue to leverage our entire company’s expansive portfolio of products, media platforms, content and personalities to enable advertisers and partners to engage seamlessly with consumers around the world,” said Bob Pittman, Chairman and CEO. 

iHeartMedia has over 850 radio stations in over 150 markets, along with a concert and events division, and iHeartRadio theaters in New York and Los Angeles. 

Its online division is thriving. Since last year, registered use of the iHeartRadio streaming hit 75 million as of September 30, up 35%. Total listening hours rose 21% in the quarter. But it still lags behind Pandora and Spotify, with session starts in August 14.4% and 23.3% respectively. 

Highlights for the Clear Channel Outdoor in this period included 15 new digital billboards in North America to make a total of 1,220 billboards in 38 markets, and 724 new digital displays in international markets to bring the total to 5,000. 

The iHeartRadio app has been downloaded in Australia 550,000 times, giving Aussies access to its library of 20 million songs from 450,000 artists.