iHeartMedia Announces $4.1B Debt Restructuring Plan, Projects $150M Cost Savings Through Layoffs
iHeartMedia has announced strong Q3 2024 financial results alongside major restructuring plans, including a $4.1 billion debt exchange and workforce reduction initiatives.
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Key Financial Highlights:
- Total revenue: $1.008 billion (5.8% increase from Q3 2023)
- 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 with holders representing 80% of outstanding debt
- Three-year maturity extension
- Maintained consolidated annual cash interest
- Enhanced financial flexibility for strategic growth
Cost Reduction Measures:
- 5% workforce reduction (approximately 500 employees)
- Projected $150 million 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. President, COO, and CFO Rich Bressler emphasized that the debt restructuring will provide runway for accelerating strategic growth initiatives while maintaining financial stability.
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