Industry News

 

Radio appears to gain strength late in the season, compared to last year.

That’s the head-turning takeaway from James Fennessy and his team at Standard Media Index (SMI). 

How does this compare to other media SMI measures?

Economic Forecasting: Broadcast Revenue Trends and Expectations for 2022 With supply chain issues and hiring challenges the Q3 2021 earnings call conversation of choice for Wall Street financial analysts, all eyes are on the first half of 2022. Will automotive finally recover in the second half of 2022? Are certain brands seeing different issues? What about sports gaming? At Forecast 2022, a panel of experts will offer attendees an exclusive and provocative discussion about who is going to “show us the money” in the year to come. For more details and to register for this event, please visit www.radioinkforecast.com today.

 

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In a significant move that signals a likely lobbying victory for the NAB, the full FCC on Friday released a Second Further Notice of Proposed Rulemaking adopted on November 4 that would allow digital multicast NEXTGEN TV channels to effectively be licensed in the same manner as their host station.

The matter is open for Comments and Reply Comments, with a schedule forthcoming based on the FNPRM’s publication in the Federal Register.

As Gordon Smith exits his role at year’s end as CEO of the National Association of Broadcasters and Curtis LeGeyt prepares to take the helm, what is the state of the broadcast industry from the Beltway view? Steve Newberry, who worked closely with both executives during his own tenure at the NAB, sits down with them in an exclusive Forecast 2022 chat covering legal, regulatory, and legislative initiatives under the leadership of the NAB that have impacted the broadcast industry over the past 12 years, how they will shape and define its future, and what challenges and opportunities lie on the horizon.

DON’T HESITATE ANY LONGER. ATTEND FORECAST 2022 BY REGISTERING NOW. Please Login to view this premium content. (Not a member? Join Today!)

A steady stream this week of third quarter earnings reports from major U.S. radio groups has culminated with a rebound report from the country’s largest radio group.

iHeartMedia’s climb back to pre-COVID revenue levels continued at an accelerated pace in the third quarter of this year. The company’s third quarter earnings call on Thursday afternoon was highlighted by consolidated revenue growing nearly 25% year over year to $928 million. The company says it is confident it will be back to 2019 Adjusted EBITDA levels by the end of this year.

The broadcaster’s multiplatform group, which includes its 850 radio stations, saw Q3 revenue climb 19% year over year. iHeartMedia Chairman and CEO Bob Pittman said during Thursday’s call “the strong recovery and growth potential of our radio business” added to the quarter’s revenue recovery.

[Read: Betting on Sports, iHeartMedia Partners With DraftKings]

Specifically, broadcast revenue grew $79 million or 19.5% YoY, while networks added $8.9 million or 7.5% up from Q3 2020.

“Our strong results this quarter are further evidence of the success of our company’s continuing transformation — data-led, digital and podcast focused, along with the unparalleled audience reach of our broadcast radio assets — supported by the largest sales force and the only unified ad tech stack in audio advertising,” Pittman said in a statement that accompanied its filing with the U.S. Securities and Exchange Commission.

For comparison sake the radio broadcasters said the multiplatform group’s revenue for the quarter was down 17% compared to Q3 in 2019, Pittman said, continuing the quarterly sequential rebound since the onset of COVID.

Digital continues to boost iHeartMedia’s revenues YoY, according the latest financial report. The digital audio group reported a 77% jump in revenue compared to Q3 2020, which includes a significant increase in podcast revenue. The broadcaster’s podcast platform boasted a revenue increase of $41.3 million over the same period a year before, which is an increase of 183.7%.

In January 2021 the broadcaster began reporting financial statements based on three reportable segments; the digital audio group, the multiplatform group and the audio & media services group, which includes Katz Media Group and RCS. Revenue from that final group decreased nearly 12% compared to the same quarter in 2020 in large part due to lower political advertising revenue this year, according to the SEC filing.

The company’s continued modernization efforts resulted in capital expenditures climbing to $101.3 million through the first nine months of this year compared to $58 million in 2020 through the same period. The company says the increase is due to its real estate consolidation initiatives.

“We expect cap ex to go down next year. This quarter we spent about $50 million in cap ex and the major increase was due to the downsizing of our real estate and becoming more efficient in that area,” said Rich Bressler, iHeartMedia president, COO and CFO.

iHeartMedia earlier this week announced a multiyear strategic relationship with DraftKings, making the sportsbook the official odds supplier for all iHeartMedia’s broadcast, digital, podcast and social media platforms. The agreement allows DraftKings to co-create and distribute long-form content with iHeartMedia using the company’s personalities.

[Read: iHeart, NPR Have Their Prints All Over Podtrac Rankings]

“This partnership builds on iHeartMedia’s industry leading sports assets, which includes partnerships with the NFL and NBA. We expect sports and sports betting to be a significant growth engine for us going forward,” Pittman said on Thursday’s earning call.

Radio groups have been aligning with betting apps and sportsbooks creating a new ad category for radio broadcasters with quickly growing revenue figures, according to analysts who follow the broadcast industry. iHeartMedia already has several radio stations with the moniker “The Gambler,” which are dedicated to sports talk and sports gambling. Bressler said during the investment call its Draft Kings deal is not exclusive and the broadcaster is open to other partnerships in the sports betting space.

iHeartMedia last week announced a $60 million voluntary buyback of its preferred stock. Pittman at the time said the repurchasing of stock demonstrates the broadcaster’s commitment to strengthening its balance sheet. As of September 30, 2021, the company was carrying approximately $5.7 billion in total debt.

 

The post iHeartMedia Q3 Report Shows Continued Recovery appeared first on Radio World.

The company’s shares were flirting with $167 in Friday’s trading on the Nasdaq GlobalSelect exchange. They bear a 1-year target estimate of $187.67.

For investors, getting in to Nexstar Media Group would involve purchasing the company’s stock at a record high, as NXST has surged from $57.73 in March 2020.

For Simply Wall St., snapping up shares today may still be beneficial. Why? Nexstar is going ex-Dividend next week.

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Although those days of storing boxes and boxes of paper public files on site at a station are gone, the rules requiring broadcast stations to maintain public files is a longstanding one — as it has been for more than 80 years — and is still in place.

So the Federal Communications Commission recent decision to hold two broadcasters to account for failing to keep their online public file up to date is a clear one. Pampa Broadcasters Inc. and Tackett-Boazman Broadcasting are both licensees of commercial radio stations who have decided to enter into individual consent decrees with the commission to resolve political file investigations. A full-power station’s political file is part of its public inspection file.

According to FCC rules, the political public file rule states that radio stations must provide information about public office candidates and advertisers who purchase broadcast time of a political nature. Stations must upload information about such requests to their online political files and those files must be made available for public inspection.

[Read: Consent Decree (Plus Good Behavior) Results in Reduced Forfeiture]

The reason that these files must be complete and up to date is that information in them directly affects the rights of opposing political candidates to request equal on-air opportunities laid out in the Communications Act. “[T]he disclosures indicated in the political file further the First Amendment’s goal of an informed electorate that is able to evaluate the validity of messages and hold accountable the interests that disseminate political advocacy,” the commission has said in the past.

Pampa Broadcasters Inc. filed license renewal applications for its three station but it was unable to prove that it was in compliance with the public file requirements for one of the stations, which includes KDRL(AM), KGRO(AM) and KOMX(FM) in Pampa, Texas.

The situation was similar for Tackett-Boazman Broadcasting. The bureau also suspended processing of the licensee’s applications because of Tackett-Boazman’s failure to certify compliance with its public file obligations for one of the stations, which includes KQBZ(FM) and KXYL(AM) of Brownwood, Texas, as well as KWYL(FM) of Coleman, Texas.

In both cases, the Media Bureau suspended processing of the broadcast licensees’ renewal applications and commenced an investigation into their public files. And in both cases, the bureau agreed to enter into a consent decree with the broadcasters, acknowledging that the COVID-19 pandemic “caused a dramatic reduction in advertising revenues which, in turn, placed the radio broadcasting industry … under significant, ongoing financial stress.”

Under terms of the consent decree, the bureau agreed to process the broadcasters’ pending radio license renewal applications if the broadcasters agreed to adhere to a compliance plan. That plan involves appointing a compliance officer to see that all terms of the decree as enforced including distributing a compliance manual to all employees, creating a compliance training program, submitting a compliance report and promising to report any instance of noncompliance.

 

The post Political File Slip Leads Two Texas Broadcasters Into Consent Agreement appeared first on Radio World.

For Washington, D.C., area residents, a trip to the beach may involve a drive east on U.S. 50 and an excursion to the beaches of Delaware. Among the towns popular with those in the National Capital Region is Rehoboth Beach.

It is here that a 41-year old FM that is presently “The Talk of Delmarva” is being spun. And, the seller is a “resort” … sort of.

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IBC says its convention in Amsterdam four weeks from now is a “go” and that attendees will not be required to wear masks once they’re inside.

“Following the update on COVID protocols from the Dutch government on Nov. 2, IBC is pleased to announce that its December event can go ahead in a safe and comfortable way,” it said in an announcement.

“As of Nov. 6, the public will be required to wear face masks in public areas where no COVID entry pass is used, including supermarkets, shops, libraries, theme parks and train stations. IBC Show will be exempt from these measures because it is organized within a perimeter where everyone must show proof of vaccination or a negative COVID test before entering the premises.”

So IBC2021 attendees will not be required to wear a face mask once they have entered the RAI and are inside the IBC Show bubble.

“Additionally …. bars and restaurants will operate between 6 a.m. and 12 a.m. Guests will be required to show proof of vaccination or a negative COVID test, the same evidence needed to access the IBC Show. There will also be no change in entry requirements for international travelers, which means the show will remain accessible for almost 100% of IBC’s usual audience.”

A resource guide on its website explains the documentation necessary for international travelers.

Chief Executive Michael Crimp said the latest announcement from the government “will not impact the IBC Show visitor experience but, rest assured, we will be delivering the gold standard in live event safety.”

Related: IBC exhibition protocols.

The post The IBC Show Is “Full Steam Ahead” appeared first on Radio World.

On October 13, RBR+TVBR first reported on the conclusion of Entravision Communications’ licensing agreement with Univision Communications, with Univision opting not to renew the pact at year’s end. As such, Univision will take over the operations of the UniMás and Univision stations serving Orlando, Tampa, and Washington, D.C.

On Friday, it became known that audience measurement services in those three markets will be delivered to Univision exclusively by a company that continues to fuel its desire to compete head-on with Nielsen in the U.S. broadcast TV marketplace.

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On Thursday, no less than eight broadcast media companies released their third quarter 2021 results. The day concluded with concurrent conference calls for analysts and investors from Entravision Communications, and from Salem Media Group.

With Friday’s trading underway, Salem shares were up. And, investors were pleased as the company known for its conservative Talk radio stations and its Christian-themed print and audio media content surpassed analysts’ estimates with its Q3 fiscal report card.

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According to analysts polled by Zacks Equity Research, The E.W. Scripps Co. — a much bigger operation today than a year ago thanks to its merger with Ion Media — was expected to post earnings per share of $0.12 in Q3. That would have reflected an 84.2% year-over-year decline, impacted by fewer political ad dollars.

How did Scripps do?

Much better than those prognostications, thank you. But, it is hardly because of the company’s Local Media unit.

 

For exclusive perspectives, projections, and visions for the broadcast industry directly from The E.W. Scripps Co. President/CEO Brian Lawlor (pictured, top left), there’s only one place to be on November 16. That’s Forecast 2022, located at the Harvard Club in Midtown Manhattan, New York City. Lawlor is appearing in an Executive Super Session, sponsored by Skyview Networks. It’s your chance to see him in person, alongside the industry’s biggest leaders.

Don’t hesitate: REGISTER NOW!!

 

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