The nation’s largest radio group is still not immune from headwinds. iHeartMedia reported a mixed financial picture in its early morning Q2 2023 earnings report. The company’s total revenue amounted to $920 million, down 3.6% compared to the same period last year.
As with the entire industry, a soft advertising market continues to affect iHeart’s performance, with Multiplatform revenue declining 5.9%, or $37.4 million, due to a decrease in broadcast and political advertising.
Despite that dip, iHeart’s advertising bright spot remains its podcast arm. iHeartPodcasts revenue increased 13%, reaching $97 million. The total revenue for the digital audio group, containing podcasting, rose 8% year over year, though excluding podcasting, the segment’s revenue was down 2%.
iHeartMedia CEO Bob Pittman, stated on the earnings call that the decline in multiplatform revenue was still less severe than the downturn experienced in 2020. Despite softness among larger advertisers, smaller ones remained resilient, and the company is optimistic about improvements throughout the remainder of the year. Audio & Media Services revenue fell by $5.3 million year over year due to a drop in political revenue.
Additionally, the company reported an operating loss of $897 million after recording income of $83 million in Q2 2022. This loss was due to $961 million of non-cash intangible impairment charges related to goodwill and indefinite-lived intangible assets balances.
While Pittman added that the company is “seeing indications of improving macroeconomic trends” in the advertising market, which iHeartMedia believes it will be able to realize in Q4, the company is expecting consolidated revenue to decline in the mid-single digits, with July consolidated revenue estimated to be down about 5%.
Has ANYONE ever been paid more to produce LESS than Bob Pitchman?