iHeartMedia Revenue Ticks Slightly Upward in Q3, Down Overall This Year

iHeartMedia’s third quarter revenue was up $13.9 million over the same period in 2017 to $873.4 million, an increase of 1.6 percent, according to a filing this week with the SEC. However, the company, which filed for Chapter 11 bankruptcy protection in March, saw its revenue for the first nine months of the year fall slightly to $2.47 billion, down 1.2 percent from the $2.50 billion it generated in the first three quarters of 2017.

In the filing, iHeart attributed its revenue growth to "higher trade and barter revenue, higher digital subscription revenue, primarily from our iHeartRadio on-demand service, higher revenue from our traffic and weather business and higher political revenue due to 2018 being a mid-term election year."

Operating income for the third quarter reached $266.5 million, up 7.5 percent over the same period last year. However, the nine-month period saw a similar drop, to $618.8 million, down six percent from the first nine months of last year. The company also reported $311 million in cash on hand, according to the filing.

Back in March, iHeart filed for Chapter 11 protection after being saddled with $20 billion in debt, the legacy of a 2008 leveraged buyout. As part of that filing, the company announced it had reached an agreement to cut that debt in half after a debt-to-equity swap with some shareholders, with an eye towards allowing the company to continue operating and to speed up the bankruptcy process.

The third quarter revenues were an improvement over the previous quarter, when revenues were down year-over-year by 3.5 percent. Equally, the year-to-date outlook improved from Q2, in which revenue was down 2.7 percent compared to the first six months of 2017.


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