iHeartMedia revealed its year-end and Q4 financial results, while also announcing a new reporting structure for the company going forward.
In the fourth quarter of 2020, iHeart’s revenue fell by nine percent compared to a year ago, to $936 million. Digital revenue was up 53 percent compared to Q4 2019, reaching $172 million. Podcasting revenue was up an impressive 100 percent. Broadcast revenue fell by 19.1 percent to $495 million and the sponsorship and events revenue was off by 51.8 percent compared to Q4 a year ago, down to $34.6 million, due to the pandemic. Net income fell by 95.3 percent to $2.9 million.
For the full-year 2020 results, iHeart revenue was off by 20 percent vs. 2019, to $2.9 billion. Digital revenue grew by 26 percent with its podcasting segment up 91 percent. Net income went from $11 billion in 2019 to a $1.9 billion loss in 2020.
In a statement, iHeartMedia Chairman/CEO Bob Pittman said, “We are pleased that the company continues its steady recovery from the COVID-19 downturn — and it’s particularly rewarding to see the impressive performance from our areas of strategic investment, like Podcasting, SmartAudio, Digital, and Ad Tech. In addition, with our new reportable segments, we will be able to provide additional insights into both our largest segment and our fastest-growing segment, and help highlight the key metrics and impressive performance of each. Our company’s continued transformation was further highlighted by our agreement to acquire Triton Digital, which gives iHeartMedia the only total audio advertising technology and data solution in the market, and which we expect will contribute to our continued growth in our digital and data-enhanced revenue.”
President/COO/CFO Rich Bressler added, “Our swift response to the COVID pandemic and our diligent management of expenses throughout the year enabled us to successfully achieve approximately $250 million of savings in 2020. This cost management enhanced our operating leverage and helped us to achieve Adjusted EBITDA of $265 million in the fourth quarter, which was an improvement of 64% over the third quarter. The continued sequential improvement of our Revenue, Adjusted EBITDA and Free Cash Flow over the past three quarters has us well positioned for continued recovery into 2021, and our commitment to make the majority of the $200 million of COVID-19 related savings permanent will further enhance the company’s operating leverage as revenue recovers.”
