iHeart Withdraws Guidance, Taps Credit Line

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Due to the coronavirus pandemic, iHeartMedia is withdrawing its financial guidance for the entire year. It was only a few short weeks ago that CEO Bob Pittman said, during an investor conference, that the coronavirus was having very little impact on the company. That was before anyone knew how bad the situation was going to get.

It’s clear the crisis is having an impact on advertising spend. For a detailed explanation on the guidance being pulled, and the $350 million the company tapped into from its revolving credit facility, read this story at our sister publication RBR+TVBR

4 COMMENTS

  1. When Bob Pittman fired the local personalities from most of the iHeart stations, those stations were left consisting of music, with the clutter of generic voice-tracked snippets from Ryan Seacrest and other voices, plus commercials. The stations offer no local relevance or local service. That plan may have worked short term with in-car listening. But now in-car listening is 90% gone due to stay-at-home edicts. And if people at home now want just music, they obviously have multiple options with the internet, many of them without clutter.
    Plus revenues are plummeting 80%, 90%.
    Don’t be surprised to see iHeart back in bankruptcy court within a few months, pleading for more creditor relief. And we may see many FM stations go dark within the year, if/when working from home becomes a norm, and the concurrent permanent drop in in-car listeners.

    • Radio listening st home is actually up (Nielsen study). As far as revenue, we are down 20% due to the Covid business closings and restrictions. That’s hardly 80-90%. It hurts but the CARES Act should help us out. Don’t quote things you don’t know anything about. Your opinion does not equal facts.

      • If your station is only off 20%, your station is an exception to the revenue free fall. And at-home radio listening is so small compared to in-car listening, OF COURSE there is going to be a bump up in that, short term, with millions more people now at home. So please don’t obfuscate my “big picture” comments by using a statistic that is irrelevant to the macro developments.

    • This may come as a shock to you but there’s a lot more on the radio besides music. Some of the biggest news/talk stations in the country are owned by iHeart, and they’re all delivering lots of live & local information for their communities. Stations such as WLW, KFI, WBZ, WOR, and KOA. Some of those stations are now being simulcast on FM music stations so more people can benefit from that information. RadioInk reported that iHeart was the only radio company that committed to airing hundreds of thousands of COVID-19 PSAs for the federal government. To say there’s “no local relevance or local service” is factually incorrect.

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