The United States’ largest broadcast radio company was not immune from the battering economic headwinds the industry faced in 2023, with iHeartMedia posting a $1.1 billion net loss for the year. The good news? Q4 outpaced expectations with some AI assistance.
During this period, iHeartMedia’s revenue saw a 5.2% decrease to $1.066 billion, down from $1.126 billion in the previous year. Operating income also saw declines, yet the company’s net loss improved, reducing to $13.12 million from a prior $79.88 million.
Broadcast radio and “Audio & Media Services” group revenues also saw declines, though podcast revenue grew by 16.6%. Despite a slow start in January, with revenue down 8%, the company anticipates improvement in the following months, with expectations of a near-flat to 2% decline for the first quarter.
iHeart CEO Bob Pittman highlighted the role of artificial intelligence in unlocking new revenue streams, particularly in programmatic and trading sectors. The company recently debuted its auction-style programmatic marketplace.
In a discussion about the advertising market, Pittman noted a more rational approach to podcasting after calling it the company’s “growth engine” after Q3 2023, with expectations of making significant progress in reducing the company’s leverage ratio. This strategy, coupled with a diverse advertising segment, positions iHeartMedia for a hopeful rebound in the coming year.
Looking ahead to 2024, Pittman and iHeart COO/CFO Rich Bressler expressed optimism for a recovery year, fueled in part by digital segment revenue growth. However, the multiplatform group, a significant revenue contributor, experienced a decline, reflecting the broader challenges faced by the radio industry in balancing traditional and digital revenue streams.
A 1.1 BILLION dollar loss in 2023??
Has ANY CEO ever held on to a job with the putrid results shown by Pitchman?
On the job for 11 years and not even ONE profitable quarter.
Pathetic.
It is baffling, all right.