IHEARTMEDIA ANNOUNCES NEW BUSINESS OPERATING STRUCTURE – New Structure Highlights Unique Financial Strengths Of Both Its Digital Audio and Multiplatform Businesses – Company’s Digital Audio Business Will Operate as iHeartMedia Digital Audio Group; Industry-Leading Broadcast Radio Business Will Be Part of iHeartMedia Multiplatform Group
New Structure Reflects Increasing Size and Importance of Company’s Digital Businesses
iHeartMedia, Inc. (NASDAQ: IHRT), the leading audio company in America by reach, announced today a new operating structure under which its Digital Audio Group business, which includes its successful iHeartRadio digital service as well as its industry-leading podcasting business, will publicly report its financials separately from its Multiplatform Group business, which includes its broadcast radio assets. Each group will now operate as a separate reportable segment with dedicated management.
As of Q4, the iHeartMedia Digital Audio Group encompassed almost 20% of the company’s consolidated revenue and 23% of its earnings, and in Q4 2020 grew revenue by 53% year-over-year and Adjusted EBITDA by 74% year-over-year [i]. The company expects the Digital Audio Group will continue to grow as an increasing proportion of its business in the future. Separate reporting of these two operating segments will provide improved visibility into the underlying performances, results and margin profiles of these distinct audio-driven businesses.
The company has created a management structure for each business reportable segment that will both strengthen and tighten the focus of these groups and enable them to work closely together to deliver industry-leading products and services to benefit all of the company’s marketing and advertising partners across iHeart’s full array of platforms and products, including broadcast radio, digital streaming, podcasts, social, data, live events, its SmartAudio suite of data targeting and attribution products and its digital advertising technology companies. Both segments will continue to report to Bob Pittman, iHeartMedia Chairman and CEO, and Rich Bressler, iHeartMedia President, Chief Operating Officer and Chief Financial Officer.