CC Media Holdings 2011 Revenues Increase 5% To $6.16 Billion
Radio, Generally Flat, Shows Gains Due To Traffic Acquisition
February 21, 2012 at 5:21 AM (PT)
CC MEDIA HOLDINGS has reported financial results for the fourth quarter and full year ended DECEMBER 31st, 2011.
Full Year 2011 Results
CC MEDIA HOLDINGS' revenues increased 5% to $6.16 billion for the full year 2011 compared to $5.87 billion in 2010. Excluding the effects of movements in foreign exchange rates, revenues rose 4%.
MEDIA and ENTERTAINMENT (CCME, formerly known as Radio) revenues grew $118 million, or 4%, compared to 2010, "due primarily to the Company’s addition in APRIL 2011 of a complementary traffic operation to its existing traffic business and higher revenues from digital radio services that reflected improved rates and greater volume."
Operating expenses in 2011 grew $60 million compared to 2010, "resulting mainly from the impact of a $98 million increase related to the Company’s Traffic acquisition and higher expenses associated with the Company’s digital initiatives, including the iHEARTRADIO Player and the iHEARTRADIO Music Festival. These increases were partially offset by a decline in salaries and commission expenses in part related to a continued focus on expense management, in addition to a $19 million decline in music license fees related to a settlement of 2011 and 2010 license fees."
Fourth-Quarter 2011 Results
CC MEDIA HOLDINGS' revenues grew 1% to $1.65 billion in the fourth quarter of 2011 compared to $1.63 billion for the same period of 2010. The noted the effects of movements in foreign exchange rates did not result in a significant impact to revenue growth during the fourth quarter.
CCME revenues rose $15 million, or 2%, compared to the fourth quarter of 2010, due to the Traffic acquisition and revenue growth in digital radio services, and partially offset by lower political advertising spend.
"We are pleased with our business performance in the quarter and throughout 2011," CEO BOB PITTMAN said. "In the last year, we have made great strides: putting our leadership team and strategic plans in place, strengthening our relationships with consumers globally and developing new strategies to better serve our advertising and marketing partners. I believe we are well positioned for new successes in 2012, as we continue working toward realizing the full potential of our businesses. We are continuing to build on the strengths of our national radio and digital content platform, including iHEARTRADIO, and further developing and executing new strategies for our outdoor businesses around the world, especially our unique digital products."
"By executing our strategy, we delivered a solid 5% increase in revenues for the full year," said EVP/CFO TOM CASEY. "Combining this revenue performance with effective cost management initiatives enabled us to improve our overall operating profit margin in 2011 despite a sluggish economy. We also continued to invest strategically in the Company, while successfully managing our debt maturity profile and liquidity. In the coming year, we will stay focused on leveraging the global diversification of our portfolio and our industry-leading assets."