iHeartMedia reported higher revenue during the third quarter, although profitability remained mixed. Digital audio growth helped offset declines across its multiplatform business.
What We Know: iHeartMedia generated $1.0 billion in revenue during the third quarter, representing a 3.3% increase year over year. The company’s Digital Audio Group and Audio & Media Services Group posted double-digit revenue growth. However, its Multiplatform Group, which includes broadcast radio, experienced a decline. Operating income also improved substantially, while adjusted EBITDA fell compared to the same period last year.
What The Numbers Show:
| Sector | Revenue | % Change |
|---|---|---|
| Total Revenue | $1.0 billion | 🟢 +3.3% |
| Digital Audio Group | $389 million | 🟢 +14% |
| Multiplatform Group | $562 million | 🔴 -5% |
| Audio & Media Services Group | $82 million | 🟢 +23% |
| Operating Income | $73 million | 🟢 +162% |
| Adjusted EBITDA | $170 million | 🔴 -17% |
What They Said: “Given the accelerating adoption of audio programmatic, we believe that the continuing rollout of our AudioGraph platform has the potential to meaningfully improve the performance of our broadcast radio business, enabling us to meet the advertising community the way they want to buy advertising.” -iHeartMedia CEO Bob Pittman
What It Means: iHeartMedia’s latest results highlight the company’s continued transition toward digital audio and advertising technology. Digital Audio Group revenue climbed 14%, while Audio & Media Services Group revenue increased 23%. Meanwhile, the Multiplatform Group’s 5% decline underscores the challenges facing its traditional radio operations. Pittman’s comments suggest the company sees its AudioGraph platform as an important tool for improving broadcast radio’s advertising performance. However, the 17% adjusted EBITDA decline remains a concern despite higher overall revenue and operating income.
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