iHeartMedia, Inc. (PINK:IHRT) today reported financial results for the third quarter ended September 30, 2016.
“We continue to grow our audiences across our broadcast radio, outdoor, digital, social, mobile and events platforms, while advancing our transformation as a digital-facing, data-rich company built on the power of broadcast radio and out-of-home”
“We continue to grow our audiences across our broadcast radio, outdoor, digital, social, mobile and events platforms, while advancing our transformation as a digital-facing, data-rich company built on the power of broadcast radio and out-of-home,” said Bob Pittman, Chairman and Chief Executive Officer of iHeartMedia, Inc. “This quarter, we were excited to announce the reimagining of live radio with our two new subscription services, iHeartRadio Plus and iHeartRadio All Access, set to debut in January 2017. In addition, at both iHeartMedia and outdoor, we continue to invest in programmatic buying platforms and research analytics tools to leverage our assets for the benefit of our marketing and advertising partners, and at Americas outdoor and International outdoor, we continue to realign our resources to expand our digital out-of-home networks.”
Rich Bressler, President, Chief Operating Officer and Chief Financial Officer said, “This quarter, we delivered revenue and operating income growth at both iHeartMedia and International outdoor. Americas outdoor’s revenue and operating income declined as the result of the sales of nine non-strategic markets; excluding the impact of the sales, revenues increased. Overall, our investments are enhancing our businesses — allowing us to keep developing and delivering innovative new products to our consumers, all while staying focused on tight operating and financial discipline.”
Key Financial Highlights
The Company’s key financial highlights for the third quarter of 2016 include:
- Consolidated revenue decreased 0.6%. Consolidated revenue increased 1.9%, after adjusting for a $5.9 million impact from movements in foreign exchange rates and the $32.8 million impact of the non-strategic outdoor markets sold in 2016.
- iHeartMedia revenues increased $10.2 million, or 1.2%. Revenues increased $3.7 million, or 0.4%, excluding political revenue.
- Americas outdoor revenues decreased $24.3 million, or 7.0%. Revenues increased $3.5 million, or 1.1%, after adjusting for a $0.1 million impact from movements in foreign exchange rates and a $27.9 million impact from the non-strategic markets sold in the first quarter of 2016.
- International outdoor revenues increased $1.2 million, or 0.3%. Revenues increased $12.1 million, or 3.5%, after adjusting for a $6.0 million impact from movements in foreign exchange rates and a $4.9 million impact from the sale of our business in Turkey in the second quarter of 2016.
- Operating income increased $32.3 million, or 12.1%.
- OIBDAN increased 4.1% and increased 7.0%, excluding the impact from movements in foreign exchange rates and the impact of the non-strategic outdoor markets sold in 2016.
Key Non-Financial Highlights
The Company’s recent key non-financial highlights include:
- Generated 11 billion social impressions for this year’s iHeartRadio Music Festival — almost 50% more social impressions than last year’s Festival and more than double the number of social impressions for the 2016 Big Game Halftime Show. In addition, #iHeartFestival trended at #1 on Twitter worldwide both Friday and Saturday nights during the 2016 Festival. Broadcast live on iHeartMedia radio stations across 150 markets, the Festival was live-streamed both nights on The CW Network via CWTV.com and the CW app; and The CW Network broadcast a two-night iHeartRadio Music Festival television special on October 6th and 7th.
- Achieved close to 92 million iHeartRadio registered users, growing 22% year-over-year, with iHeartRadio’s cumulative downloads and upgrades surpassing 1.1 billion, as of September 30, 2016, and total listening hours up 8% year-over-year.
- Announced that the Company is reimagining live radio through two new on-demand services — iHeartRadio Plus and iHeartRadio All Access — set to debut in January 2017. This marks the first time that on-demand functionality will be used to enhance the radio experience, unlike existing services that are only music collection offerings. When listeners hear a new song on the radio, they can instantly replay a song and even save it to a playlist. iHeartMedia reaches more than a quarter of a billion Americans monthly through its broadcast stations alone, and iHeartRadio has the ability to drive massive awareness of iHeartRadio Plus and iHeartRadio All Access to new audiences on a national scale.
- Set the return of the national “iHeartRadio Jingle Ball 2016 Tour Presented by Capital One,” an iconic holiday season music event that will stop in 12 cities. The iHeartRadio Jingle Ball Tour Presented by Capital One captures the holiday spirit of the iHeartRadio app, with performances by a number of the year’s biggest recording artists, including Bruno Mars, Justin Bieber, Britney Spears, Ariana Grande, Niall Horan, The Chainsmokers and Fifth Harmony.
- Scheduled the fourth annual iHeartRadio Music Awards on Sunday, March 5, 2017 at the historic Forum in Los Angeles, which will again be televised live on TBS, TNT and truTV and simulcast on iHeartMedia stations nationwide and iHeartRadio.
- Launched the original podcast, Tagline, with Advertising Age aimed at the marketing community at large to provide listeners with insiders’ perspectives on the craft of advertising and what the world that influences pop culture is all about.
- Expanded iHeartRadio into Canada through Bell Media, Canada‘s leading media company, with the launch of the iHeartRadio Canada app featuring hundreds of live stations and iHeartRadio-branded music events like the iHeartCanada Jingle Ball this month.
- Joined forces with Hispanic radio legend Enrique Santos in a unique Hispanic initiative to develop programming and content for iHeartMedia across its multiple platforms. This new alliance recognizes the increasing importance and size of the U.S Hispanic population, both Spanish- and English-speaking, and builds on Santos’ high profile within the Latino community as a top-rated on-air talent, trusted source, social and media influencer, content creator and community spokesperson and leader.
- Celebrated the best in Latin Music at the iHeartRadio Fiesta Latina on Saturday, November 5th , generating 3.7 billion social media impressions over the weekend, over two and a half times the prior year. Telemundo aired the exclusive TV special on November 6th and iHeartRadio Fiesta Latina video streamed live exclusively on Telemundo.com and broadcasted live on iHeartMedia Spanish-Pop, Tropical, regional Mexican and Spanish Adult Hit radio stations across the U.S.
- Installed 911 new digital displays in our North American and international markets for an end-of-quarter total of 1,082 across 28 markets in North America and over 9,000 digital displays in our international markets.
- Renewed the contract for the Hartsfield-Jackson Atlanta International Airport, recently named the “World’s Busiest Airport” for the 18th consecutive year.
- Secured a new contract for the Roanoke-Blacksburg Regional Airport in Southern Virginia, home to Virginia Tech University and 20 other colleges and universities and awarded the media contract for the Punta Cana International Airport in the Dominican Republic.
- Announced the conversion of 500 telephone boxes in London acquired in the first quarter into brand new phone boxes featuring Wi-Fi, interactive local maps and payphone services, with an Adshel Live digital screen integrated into every unit.
- Awarded rights to market more than 800 display sites at premium municipal locations in Lucerne, Switzerland.
- Launched Trace tool in the UK, which tracks the consumer purchase journey and allows media planners and advertisers to explore how best to engage their target audiences at the right time, in the right place with the right message.