iHeart’s Q1 Earnings Drop
There was no official Q1 Earnings call from iHeart Media (thanks to their bankruptcy), but the numbers did a good job of speaking for themselves. While iHeart’s parent co was up the radio division was down 2% vs. Q1’17. This is significant because iHeart has prided itself in having a long streak of QoQ growth. They always pointed to the streak as evidence that their overall national strategy was working despite the fact that their “growth” has been propped up by increased barter deals, which they’ve audaciously counted as revenue for years. Based on their most recent financials it looks like they’re starting to true up their books with reality.
The other notable in iHeart’s financials was the disclosure that they paid $418M of interest payments which led to a net loss of $416M . . . in just three months. With debt service like that is there any wonder why they declared bankruptcy?
Despite Q1’s grim financials better days are ahead for iHeart. Now let’s just hope CEO Bob Pittman and CFO Richard Bressler don’t power up the spin machine by the time the next earnings call comes around.