iHeartMedia is the latest business to reveal how COVID-19 affected its bottom line in the second quarter of 2020. Net revenue in Q2 fell by 47 percent compared to a year ago, down to $488 million. iHeart’s broadcasting division revenue dropped 56.5 percent to $244 million, compared to $561 million a year ago. Its networks division was down 38 percent compared to a year ago, to $96 million. Digital revenue was up two percent compared to Q2 2019, hitting $93 million, driven by a 103 percent increase in iHeart’s podcast revenue. Sponsorship and events declined 65 percent from to $15 million, while audio & media services declined 33 percent to $39 million.
“The challenges that we have faced due to COVID-19 were unprecedented and had a severe, negative impact on our revenue in the second quarter,” said iHeartMedia Chairman/CEO Bob Pittman. “Despite those financial challenges, we retained our strong relationship with the consumer as the #1 audio company in America and the #1 media company in America by reach. As the advertising marketplace is recovering, we are working hard to ensure that we have the products and services to fully capitalize on the opportunity while proactively taking steps to fortify our balance sheet and our liquidity. Finally, I want to thank our employees for their commitment and creativity under such difficult and challenging circumstances.”
“In response to COVID-driven market weakness, we acted rapidly and decisively to further streamline our cost structure and capital-spending programs, while continuing to implement pre-COVID cost savings programs through our modernization initiatives,” said iHeartMedia President/COO/CFO Rich Bressler. “These actions played an important role in minimizing the negative impact on our free cash flow results against the backdrop of the significant revenue declines we saw in the second quarter. We believe that these actions, in combination with our proactive capital structure management provides the Company with sufficient liquidity to operate effectively even in an extended period of economic weakness.”
