Despite being the largest owner of radio stations in the entire US, iHeartMedia worry about making it to the end of the year as their “ability to continue is a going concern”.
iHeartMedia, the company behind the massive online radio platform – iHeartRadio, may be reaching it’s last legs, they have revealed in advance of their next quarterly report. In the process of managing to build up a platform made up of 850 stations, including high profile talk show hosts like conservatives Rush Limbaugh and Sean Hannity, that reaches roughly a quarter of a million people each month, the company has also managed to rack up a crushing amount of debt.
The news broke last week when iHeartMedia revealed that their next quarterly report would include a warning to investors “as to our ability to continue as a going concern”. With such an impressive amount of debt insult was added to injury when their reports revealed that the company’s revenues had made a 2.4% decline on the previous year.
According to Reuters a group of iHeartMedia’s major lenders have come together to block any debt restructuring, over concerns in their investments. With over 50% of the debt holders approval needed for their proposed restructuring their announcement could be an appeal to investors to be more flexible. Unfortunately the only news to come so far following their reveal was that stock for the company had reduced by 5% last Friday.
It’s a shame given iHeartRadio’s recent celebratory announcement as they reached the awesome milestone of 100 million listeners just last month. The achievement came after their audience increased by 10 million in just 7 months. Unfortunately their growth seems unlikely to save them, unless they can arrange some serious debt restructuring.