iHeartMedia Unveils $4.1B Debt Restructuring Plan, Projects $150M in Cost Savings Through Layoffs
iHeartMedia has announced a major debt restructuring plan alongside its Q3 2023 financial results, while implementing significant cost-cutting measures through layoffs.
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Key Financial Results:
- Total revenue: $1.008 billion (5.8% increase from Q3 2022)
- Digital Audio Group revenue: $301 million (13% increase)
- Podcast revenue: $114 million (11% increase)
- Multiplatform Group revenue: $620 million (1% decrease)
- Audio & Media Services Group revenue: $90 million (45% increase)
Debt Restructuring Plan:
- $4.1 billion debt exchange agreement
- Support from approximately 80% of debt holders
- Three-year maturity extension
- Maintained consolidated annual cash interest
- Enhanced financial flexibility for strategic growth
Cost-Cutting Measures:
- Workforce reduction of approximately 5%
- Around 500 employees affected
- Projected $150 million in cost savings by 2025
The company's Chairman/CEO Bob Pittman noted that Q3 results aligned with guidance and indicated a recovery in advertising revenues, while President Rich Bressler emphasized that the debt restructuring will strengthen the company's position for future growth initiatives.
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