iHeart Nabs 40% Of US Radio Ad Dollars; Costs Undercut Q1 Gains

    By
    Cameron Coats
    -
    10
    iHeartMedia Logo 2023 PNG

    iHeartMedia opened 2025 navigating the same tightrope walk that has defined much of the past year for radio: trimming costs while betting big on digital growth as the United States’ largest audio operator confronts a stagnant ad market even as listenership grows.

    “We’re seeing generally stable ad spend, but we of course continue to monitor it closely,” iHeartMedia CEO Bob Pittman said. “We remain committed to identifying opportunities across our organization to operate more efficiently and take advantage of new and evolving technologies like programmatic and AI.”

    That strategy is reflected in the company’s $150 million cost-cutting plan, which follows the company’s widespread layoffs in late Q4 2024. According to its investor presentation, 65% of projected savings are tied directly to headcount reductions. The bulk of those cuts – 70% – fell on the Multiplatform Group, which houses the company’s traditional broadcast radio business, networks, and live events.

    “This is a monetization issue that broadcast radio is facing,” Pittman explained. “It’s making the transformation from being a business that was sold as spots, and today it’s moving to electronic and digital platforms.”

    Financial results for Q1 2025 reflect the tension between that transformation and legacy operating costs. iHeart reported revenue of $807.1 million, up less than 1% from $799 million in Q1 2024. However, total operating expenses climbed, with direct operating costs up to $356.3 million from $341.4 million. Interest expenses rose to $100.4 million, and a swing from investment gains to losses – $99.2 million gained in Q1 2024 versus an $18.6 million loss this quarter – contributed to a net loss of $280.9 million, compared to $18.1 million the year prior.

    Still, the company’s digital segments offered some relief. iHeart’s Digital Audio Group generated $277 million in revenue, up 16% year-over-year, driven by a 28% surge in podcast revenue. “We’re beginning to feel the flywheel effect of being the strong number one in podcast publishing,” Pittman said.

    By contrast, the Multiplatform Group saw a 4.2% year-over-year revenue decline. However, there were some bright spots. “Premiere Networks revenue returned to growth in Q1 and was up 2.1% compared to prior year,” Pittman said. “We believe this is an important indicator of the growing strength broadcast radio has among national advertisers.” He added that iHeart now commands 40% of the radio ad revenue in Miller Kaplan-measured markets.

    President, COO, and CFO Rich Bressler noted that iHeart’s Q2 2025 revenue is expected to decline “low single digits compared to prior year,” but emphasized that the company’s full-year savings target remains intact. “These actions will generate net savings of $150 million in 2025 when compared to 2024,” Bressler said.

    RELATED ARTICLESMORE FROM AUTHOR

    10 COMMENTS

    1. iHeartMedia’s strategy to balance cost-cutting with digital growth is crucial. While facing challenges, their podcast revenue surge shows promise for future profitability and audience engagement.

    2. It’s really quite simple, and most, if not all of you miss the point. IHeart (then Clear Channel) overpaid for most of their assets to the tune of up to 18x cashflow. Yes, they amassed a huge footprint, but are now struggling with ad revenue down upwards of 50%! Bad forethought, but they were not alone. I’m in the same boat, having overpaid when judged against the new radio revenue reality in 2025. Guess I should be there and feathered or pilloried too. Cause we are all facing the same reality. When revenue crashes, expenses must be cut. Is the IHeart upper management worth the multi-millions they earn? I’ll leave that for you to decide. But, ain’t nobody getting rich in radio these days – except maybe a Pittman.

    3. “President Trump, how would describe Iheart media company leaders and everyone in that company?”

      “THEY ARE A BUNCH OF LOSERS and PIGGMAN and BREXEL YOURE FIRED!!! GET THE HELL OUT OF HERE!!!”

      • Funny! And spot on. Although there definitely are a lot of good, dedicated radio professionals at iHeart. And they definitely deserve better ownership, with financial resources and competent leadership.

    4. I was going to reply, but it appears that what I was going to say, had already been said!

    5. Bottom line facts, if you sift through all the Pittman BS –
      1. The company lost another $289 million
      2. Pittman’s solution is a $150 million “cost cutting plan”…65% of which is head count reduction.”
      3. In 14 years as iHeart head boss, Pittman has not made one cent in profit for the company!!
      Yet, now he’s going to fire thousands more iHeart employees, ruining careers and families in the process.

      How does this con man stay in charge?? Simple. The Board of Directors is rigged with Pittmam’s lackeys.

      Any investors in iHeart are total and complete suckers.

      • Where’s the Big A, who worships at the alter of Pitchman??

        I’m sure he will tell us that none of the past 14 years is Pitchmans fault.

        14 years and NEVER a quarterly profit. And still employed. You can’t make this stuff up.

          • Naw.
            I would guess that Big A is an I Heart executive would has his mouth wrapped securely around the corporate teat.

    Comments are closed.