Industry News

The economic damage inflicted by the COVID-19 pandemic lessened in the third quarter for iHeartMedia as the company returned employees to the office in some markets.

The largest radio group owner in the United States reported Monday it generated revenue of $744 million across all of its business lines for the three months ending Sept. 30. That’s a decline of nearly 22% year-over-year, but a rebound of 53% compared to the previous quarter. July, August and September were down 27%, 21% and 18% year-over-year respectively.

Specifically, broadcast revenue in the quarter declined by 29.4%, while the network radio business sector dipped 25.7% compared to the same quarter in 2019. The company’s digital revenue was up 16.5% year-over-year with most of that growth attributable to podcasting, which grew revenue 73.6% compared to a year earlier.

Direct operating expenses in the third quarter 2020 decreased by 12.6% compared to 2019 and was driven primarily by lower employee compensation expenses resulting from cost-cutting initiatives and reduction in workforce, according to iHeartMedia’s financial report.

[Read: FCC Gives iHeart a Foreign Ownership Privilege]

Self-imposed cost cutting through modernization initiatives will result in operating expense savings of approximately $250 million in 2020, according to the broadcaster’s financial report. “Part of that is utilizing the studios of the future through cloud-based technologies, and really taking advantage of AI,” said Rich Bressler, president and COO of iHeartMedia. “We’ve created centers of excellence across the organization that consolidate key resources for the whole company that increase quality of our programming and reduce costs. The company has become wildly more efficient.”

The broadcaster continues to identify additional efficiencies, including opportunities to reduce its real estate footprint in response to changes brought on by the COVID-19 pandemic. Bressler said on the investor call the broadcaster has no plans for downsizing the company through asset sales.

iHeartMedia Chairman and CEO Bob Pittman added: “We have learned a lot through COVID. We have had 10 years of technology learning through three or four months. As a result we envision operating differently in terms of operating our space. I think everyone will come to the office some, but we will not require the same amount of space. Employees will be doing more of their work outside the office.”

The broadcaster is slowly reopening facilities as local health safety criteria for doing so are met, Pittman said. In fact, employees in about half of iHeartMedia’s 160 markets have returned to the office.

iHeartMedia’s capital expenditures for the nine months ending Sept. 30 were $58.5 million compared to $82.5 million in the same nine months of 2019. iHeartMedia projects full-year cap-ex to be approximately $75 to $95 million. The broadcaster said it expects to continue to make key investments in its strategic initiatives related to smart audio and digital, including podcasting.

On Monday’s investor call Bressler called it the “best year for political advertising ever” for the broadcaster. iHeartMedia reported $40 million in political revenue in Q3 while another $55 million funneled in during October. “It will be significantly less in November but we will still get some benefit,” Bressler said. The company reported political revenue is expected to be up for the full year 67% compared to the 2016 presidential election cycle.

Pittman said he is optimistic about the company’s fourth quarter revenue, which continues to grow month over month but will “likely be down again but only in the mid-teens” compared to a year ago. A recent report of a possible COVID-19 vaccine breakthrough could calm advertiser fears, Pittman said, and stirs his optimism even further going forward. “A lot of our growth in Q3 came from sectors like food and beverage, auto, restaurants and retail. Those are categories that had been down a lot in the second quarter. But if we get a vaccine we could see the return of some big spenders like movies and concerts. And the rest of retail. We are watching those developments carefully,” he said.

The company, which emerged from Chapter 11 reorganization in early 2019, is still maneuvering to cut its debt, according to its report to the U.S. Securities and Exchange Commission. iHeartMedia reported debt of just over $6 billion at the end of September.

The post iHeartMedia Q3 Revenue Report Brings Some Encouragement appeared first on Radio World.

Future plc, the global platform for specialist media, announced that Radio World is the recipient of its 2020 “B2B Publication of the Year” Award.

Radio World serves radio broadcast industry professionals in the United States and globally with content about technology trends, regulation, new products and radio technical careers. 

“In a challenging year marked by tremendous disruption in the media and trade show industries, plus the impact of COVID on all businesses, Radio World, a 44-year-old brand, continues to reinvent itself and thrive, consolidating its position as the radio industry’s No. 1 technology brand,” the company stated.

Future made note of Radio World’s revenue performance as well as its business-to-business innovation with new digital content formats, its growth in digital audience, and its recent content exploring diversity issues in radio. 

Radio World is a multiplatform brand, with print and digital editions, e-newsletters, social platforms, ebooks and webcasts. 

Among its successes in fiscal 2020:

• The webcast “Inside WTOP: A Specialty Facility Tour Webinar” took Radio World’s video camera into the gleaming new studios of America’s top-earning radio station near the nation’s capital. 

• A front-page special report “Blacks Are Few in U.S. Radio Engineering” was part of a special series of stories featuring career reflections of African-American engineers with their views on their roles and opportunities.

• “Broadcasting From Home” was a four-part series of one-hour produced webcasts featuring interviews with media company technologists about how they responded to the challenge of the pandemic in their workflows.

• Radio World’s online video efforts also included a webcast about one of radio’s big technical questions, “Digital Sunrise for AM,” a spring product-based webcast “15 Things You Can’t Miss” and two autumn product webcasts “Fall Product Peeks I & II.”

• Radio World’s website delivered YoY page views up +39%, users +51% and sessions +46% as of September. The publication’s e-newsletters are notable for their open rates and click-throughs.

• And Radio World expanded on the success of its ebooks, having now published more than 75 of them, this year including reports on trends in codec design, artificial intelligence, and virtualization and the cloud. 

“Radio professionals have become multimedia, multiplatform specialists,” Content Director and Editor in Chief Paul McLane said. 

“Radio World’s work has been characterized by remarkable stability and endurance, and by loyalty from both readers and clients. We’re proud of our efficiency and profitable operations accomplished in a difficult economic environment through smart initiatives, judicious investment and a roll-up-the sleeves attitude adopted by the entire team.”

“This is also an amazing time to be part of Future plc, which Radio World joined in 2018,” McLane said. “Its corporate culture and its support for innovation have been big parts of helping us not only keep Radio World relevant, but to grow it in new directions.”

The company’s annual awards were given in a virtual ceremony on Friday Nov. 6, led by Future CEO Zillah Byng-Thorne.

The post Radio World Is Future’s B2B Publication of the Year appeared first on Radio World.

A new career center has been launched by the IEEE Broadcast Technology Society, designed to connect broadcast industry professionals across all disciplines and career stages with broadcast employers.

The new center, called the BTS Career Center, is designed to highlight the unique nature of members of this industry, said Ralph Hogan, president of the IEEE Broadcast Technology Society. “Our members are highly appealing to employers because they’ve demonstrated a commitment to the highest levels integrity and training,” he said. “Providing our members with opportunities for professional development and career growth are core to our mission to serve the broadcast profession.”

[Read: Ben Dawson Honored With IEEE BTS Award]

The BTS Career Center is being hosted by YM Careers, a provider of job websites and career centers for organizations that serve specialized members. The career center is also unique in that it offers broadcast industry professionals and employers additional benefits such as the ability for job seekers to post anonymous resumes, options for employers to reach out to passive job-seeking broadcast industry professionals who do not visit job boards, integration of job content into social media channels, and the integration of career resources, training and other benefits offered by IEEE Broadcast Technology Society to members.

The career center is in line with the IEEE Broadcast Technology Society’s mission: to enhance industry professionals’ knowledge by keeping them informed of the latest research results and industry trends, and provide enriching educational and networking opportunities.

The post New BTS Career Center Launched by IEEE Broadcast Technology Society appeared first on Radio World.

If you want to tell the Federal Communications Commission what you think about its planned limit on applications in the upcoming window for new NCE FM stations, take note: The commission has now published the deadlines for comments.

In October, the FCC said it is seeking comment on its proposed limit for applications in the window that’s expected to open next year. The commission intends to cap the applications at 10 for any applicant, and that no party should have an attributable interest in more than 10 applications. [Read: “FCC Plans to Cap New NCE FM Applications.”]

Now the Media Bureau has set the deadline for comments at Nov. 20, and reply comments by Nov. 30.

Comments are being accepted in MB Docket No. 20-343. Comments may be filed via the commission’s ECFS website.

As we’ve reported, more than a decade has passed since the FCC accepted applications for new full-power NCE construction permits.

The window will allow non-profit organizations, schools and native tribes to apply for original CPs in the NCE reserved band, which is 88.1–91.9 MHz on the FM dial. Individuals cannot apply for NCEs. A separate window for additional new LPFMs is expected to follow.

The post FCC Sets Comment Deadlines on NCE FM Cap appeared first on Radio World.

Joe Mack has been named chief revenue officer of equipment manufacturer GatesAir. It is a newly formed position.

Meanwhile Rich Redmond has left the company after 23 years, a spokesman confirmed to Radio World. Redmond most recently held the title of president – managing director, international.

[Read: GatesAir Promotes Parikh to VP of Engineering]

“Joe will take ownership of global sales activity in his new role, with all regional sales leaders across APAC, CALA, EMEA and North America reporting to him,” the company stated in a release planned for Tuesday distribution and obtained by RW.

Mack will continue to report to GatesAir CEO Bruce D. Swail.

Mack has been with GatesAir and its predecessor Harris for 30 years. He was promoted to VP of sales for the Americas when GatesAir was formed in 2014, after holding leadership roles at Harris Corporation’s Broadcast Communications Division. “Joe was responsible for all U.S. spectrum repack sales efforts, which established GatesAir as the undisputed market share leader for broadcast transmission,” the company stated. He joined Harris through the acquisition of Midwest Communication in 1990.

Rich Redmond joined Harris in 1998, according to his LinkedIn page, and held several sales and business development roles. He has been a familiar face to visitors to the GatesAir booth at trade shows, and played an important role in that 2014 “carveout” of GatesAir from Harris six years ago. He started his career with Northeast Broadcast Lab in 1990. Redmond did not immediately reply to a request for comment from Radio World.

GatesAir is part of The Gores Group, a global investment firm.

The post GatesAir Names Joe Mack as CRO appeared first on Radio World.

USSI Global has launched a service to mitigate possible interference that may occur in the C-Band as broadcasters and cable networks transition from the lower 300 MHz band to make room for 5G services.

Operators of C-Band services in the 300 MHz band will be moved to what remains of the 200 MHz band by 2025. An auction for the spectrum begins in December, and the relocation of existing C-Band users in the 300 MHz band will occur with deadlines in late 2021, 2023 and 2025.

[Read: FCC Chooses C-Band Repack Money Clearinghouse Operators]

The new USSI Global interference mitigation service offers a full range of project management services, including site inspection, installation and commissioning. The company also can modernize all satellite systems and infrastructure, it said.

USSI Global, which is a turnkey provider of customized network, broadcast and digital signage systems and services around the world, plans to have a dedicated team of RF and satellite engineers work on each relocation project. It will offer C-Band users an option to offload network operation, monitoring and maintenance to USSI Global technicians, as well as a dedicated around-the-clock call center to respond to problems, the company said.

“The C-Band spectrum is occupied by television and radio broadcasters, as well as cable networks, that use satellite networks for contribution and distribution,” said David S. Christiano, USSI Global CEO and president.

“Our C-Band Mitigation Interference service will guide operators through complex, time-sensitive transformations and complete system upgrades that optimize their network infrastructure for the next generation. USSI Global brings together every project management and customer service element to ensure smooth transitions for our customers.”

The company will perform a full inspection of existing satellite facilities, after which its field engineers will manage all technical changes to the network infrastructure. It will update and repaint existing antennas as well as install new antennas, filters, IRDs and other components to modernized satellite networks. USSI Global will work with multiple suppliers while procuring new technology to get the best price, the company said.

USSI Global also will retune and repoint antennas to comply with frequency changes while enabling its clients to maintain uninterrupted service during the upgrade and transition, it said.

More information is available on the company’s website.

The post USSI Global Service to Assist C-Band Spectrum Users Relocate appeared first on Radio World.

Gordon Smith, a former Republican senator and now the president/CEO of the National Association of Broadcasters, says it is “decisive” that Joe Biden won the U.S. electoral vote. Smith issued a statement this weekend praising Biden for “his patriotic love for his country and of his good heart for all his countrymen.”

This would normally be considered a fairly routine post-election compliment from a former Senate colleague, but it stands out in the 2020 political climate.

Smith, a Republican, issued his statement even though Trump has not conceded and has issued numerous legal challenges to the Biden win.

In a similar vein, former President George W. Bush on Sunday described the election as “fundamentally fair.”

Smith acknowledged Trump’s rights to judicial review of election results but said, “It is time to acknowledge the election of Joe Biden and to allow him the chance to bind our nation back together.”

Here is the text of Smith’s statement:

“It has been clear for days now that Joe Biden has been on track to win the popular vote in his run for the presidency. It is decisive that today he has surpassed the threshold of 270 electoral college votes. NAB congratulates Joe Biden on becoming president-elect of the United States of America.

“I was privileged to serve beside President-elect Joe Biden during my two terms as a Republican Senator from Oregon. I know Joe. I know his patriotic love for his country and of his good heart for all his countrymen.

“Working together on the Foreign Relations Committee, we routinely bridged the partisan divide to achieve important legislative accomplishments.

“And, during a time of personal tragedy for my family, when we lost our son Garrett, Joe was a source of support and solace. Because he too knew the pain of losing a child, he gave to me a steady, brotherly shoulder to lean on. Joe is a healer, the consoler-in-chief our nation has elected.

“With due respect to President Trump’s rights to judicial review of election results, it is time to acknowledge the election of Joe Biden and to allow him the chance to bind our nation back together.”

He posed a video message for NAB members regarding the elections. He highlighted the large turnout and the role of broadcasters in the process.

The post Gordon Smith Says Biden Won appeared first on Radio World.

The Federal Communications Commission will allow more foreign investment in iHeartMedia — up to 100%, subject to certain conditions.

“We find that the public interest would not be served by prohibiting foreign investment in iHeart, the owner of over 850 radio broadcast station licenses, in excess of the 25% benchmark set forth in … the [Communications] Act,” wrote Albert Shuldiner, chief of the Audio Division of the Media Bureau.

The FCC has the discretion to allow higher levels of foreign investment in a broadcaster’s U.S. parent company. iHeart asked to be allowed to exceed the 25% cap because, in coming out of bankruptcy last year, it issued new stock and special warrants but was required to seek approval to exceed 25% so that foreign investors could use their warrants to buy stock.

[Read: Cumulus Gets Thumbs up on Foreign Ownership Petition]

A 2016 commission order made it easier for U.S. broadcasters to seek this type of outcome. Since then, the FCC has eased or waived the 25% cap in several cases. iHeart’s role as the country’s largest radio station owner makes it notable, but the FCC recently also gave a similar ruling in favor of Cumulus Media.

“The FCC’s decision will enable holders of iHeartMedia warrants to have those warrants exchanged into Class A or Class B shares of iHeartMedia common stock,” the company stated. It said the ruling “will afford iHeartMedia flexibility to accommodate increased foreign investment that may result from share purchases by the public.”

The nine-page ruling includes a summary of the role and investment structures of the specific companies concerned: PIMCO Group and Invesco Group. iHeart had estimated that if their warrants were fully exercised, its foreign equity interests would be about 64% and foreign voting interests around 70.5%. iHeart emphasized that the investments mostly involve U.S. subsidiaries of businesses based in Germany and Bermuda, two close allies and trade partners.

In its petition, iHeart also argued that lifting the cap would serve the public interest by enabling it to better compete, incentivizing foreign investment and encouraging reciprocal opportunities for U.S. companies elsewhere.

The company will still have to obtain FCC approval for any new or additional foreign entity to control more than 5% (or more than 10% for certain institutional investors).

The commission rejected an argument by one petitioner that this outcome would put national security at risk. The FCC said the Departments of Justice, Defense and Homeland Security signed off, as long as iHeart abides by commitments it made to DOJ including designating a Security Officer who is a U.S. citizen and certain reporting requirements.

The post FCC Gives iHeart a Foreign Ownership Privilege appeared first on Radio World.

Group owner Entercom’s third quarter investor report delivered on Nov. 6 wasn’t the ad revenue disaster of the previous quarter, but it shows any kind of robust economic recovery will take time.

Entercom said its third quarter net revenue was $268.5 million. That’s an increase of 53% compared to the second quarter of 2020. However, that is a dip of 30% when compared to the third quarter of 2019, according to the financial report.

One promising sign for the publicly traded broadcaster is its monthly revenue improvement trend when compared to one year ago: July was down 36%, August down 32% and September was down 25%.

[Read: Entercom and FanDuel Ink Partnership]

Entercom has been aggressively trimming costs since the beginning of the pandemic and cut station expenses in the quarter by 16% compared to 2019 totals to $228.1 million. That cost-cutting couldn’t help Entercom stem an operating loss of nearly $300,000 for the third quarter compared to income of $79.5 million in Q3 2019.

Entercom’s President and CEO David Field said during the investor call on Friday the company will continue to focus on reducing costs to be better positioned for economic recovery post-pandemic. “For example, we are planning to reduce the size of our studio locations significantly to reflect expected post-pandemic work structures. And anticipate significantly reducing the $70 million we currently spend on studio leases over the next several years.”

He continued: “In addition, we have significantly reduced the staffing and scope of our promotions department and discontinued some of the legacy practices, which have diminishing value given the rapid adoption of our digital, social and other technologies.”

Booked fourth quarter ad revenue for Entercom, Field says, already exceeds the $268.6 million in revenue from the third quarter. Some of that is attributable to political advertising which “rose significantly in October,” he said.

Friday’s financial disclosure shows the broadcaster’s digital and podcasting revenues were up 41% year-over-year to $47.3 million in the third quarter. Field said: “We continue to build and transform Entercom into a leading multiplatform audio content and entertainment company with scaled audience reach, robust data, analytics and attribution capabilities.”

Field said podcast downloads was up 27% compared to Q3 2019. The company has just over 26 million monthly average podcast users.

The broadcaster’s net debt as of Sept. 30 was $1.63 billion, which is down $66 million from the end of 2019, according to the company’s filing with the U.S. Securities and Exchange Commission.

Much of the erosion in ad spending in 2020 brought on by the pandemic can be attributed to two factors, less volume and lower pricing, Field said. “There’s no question we took a hit on pricing. We did a lot of things to support our local advertisers who were hurting. But inventory has tightened up and we have seen an improvement in pricing.”

Coinciding with Friday’s investor call Entercom announced a station swap with Urban One that gives Entercom FM stations in Philadelphia and St. Louis and an AM station in Washington. In exchange Urban One will gain Entercom’s cluster of radio stations in Charlotte, N.C. The deal was an “even trade with no other financial considerations,” Field said on Friday’s investor call.

In addition, Entercom recently announced a partnership with FanDuel designating the sports betting company as “the official sportsbook partner” of Entercom. Field called the agreement “the largest advertising deal in radio history,” without specifying any dollar figures.

“Unfortunately, we are not at liberty to share those (numbers), but I will say that FanDuel will be one of our largest advertisers,” Field said. “And we expect the amount of their advertising to grow over the six years of the deal as we see more states open to legalize mobile gambling, including New York.”

The post Entercom Filing Shows Ad Revenue Trending Up appeared first on Radio World.

The big multi-station swap that was just announced by Entercom and Urban One will bring change in four major media markets.

Among the impacts, Entercom’s iconic KYW(AM) in Philly now gets a big FM presence, while the company enhances its position in three big markets, but departs a fourth.

Meanwhile Urban One becomes an even bigger player in Charlotte than it already is, and reduces its debt.

Entercom CEO David Field on Friday described it as an “even trade with no other financial considerations.”

The FCC must approve all this; the deal is expected to close early next year. But Urban One and Entercom will begin operating the stations later this month under a Local Marketing Agreement.

Entercom gets St. Louis urban contemporary station WHHL(FM); Philadelphia urban station WPHI(FM); and Washington, D.C., station WTEM(AM) “The Team 980,” flagship of the Washington NFL team. Entercom also takes the intellectual property of St. Louis  adult urban contemporary WFUN(FM) “The Lou,” which will move to another frequency.

Entercom already has multiple other stations in each of these markets.

In Philly, Entercom will use WPHI to carry “KYW Newsradio” programming on FM at 103.9, in addition to KYW’s 1060 AM signal. In the announcement, Senior VP & Market Manager DavidYadgaroff made oblique reference to a common woe of AM operators when he talked about expanding KYW’s reach and enhancing the listener experience “on the crystal-clear FM dial.”

It is the second expansion of a major Entercom AM news format to the FM dial in a few weeks, following the recent move in Pittsburgh to expand KDKA to FM.

But the deal also means Entercom lets go of another notable news talk station, because …

Urban One is really powering up in Charlotte, N.C., where it currently has three stations. Now it adds these from Entercom: news/talker WBT(AM/FM), adult contemporary station WLNK(FM) and sports station WFNZ(AM) and its FM translator at 102.5.

President/CEO Alfred Liggins said in a release: “By adding three best-in-class general market formats (adult contemporary, sports, news and talk) to our existing cluster of stations — WPZS(FM), WOSF(FM), and WONC(FM) — that super-serve the Black and Urban consumer, Urban One will be a dominant player across all segments of the growing Charlotte market. The ability to build scale with a complete market offering in multiple genres is what makes this deal so exciting.”

Although money isn’t changing hands, Liggins said the deal also helps the company “continue our strategy of de-leveraging the business.”

At Nielsen Audio, the Washington market is ranked No. 7, Philly is 9, Charlotte is 23 and St. Louis is 24.

The post Entercom-Urban One Deal Shakes Up Four Markets appeared first on Radio World.