We should get a very real look at how bad the coronavirus has impacted radio’s largest company at the end of the day on Thursday, May 7 when iHeart reports earnings. The Q1 report will include January, February and March.
March and April is when the virus really started to make an impact. iHeart has 850 radio stations across the country and has been radio’s number one revenue generating company for years. Earlier this month iHeart announced furloughs, expense reductions and salary cuts in an attempt to save $250 million this year.
IHearts Q1 report should make for interesting reading, although Covid-19 and stay at home orders would have a minor, negligible effect on Q1 because that only impacted the last week of March, just 1 out of 13 weeks for the quarter. Whereas, Q2 will be much more telling. Very possibly, the Federal Bankruptcy Court will need to rescue iHeart (and possibly smaller groups) again, but whether the creditors will be as forgiving and cooperative this time, no one knows obviously and only time will tell.
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