Clear Channel Revs Up 3%, CCM+E Grows 6%
May 4, 2012 at 5:13 AM (PT)
CC MEDIA HOLDINGS has reported financial results for the first quarter ended MARCH 31st, 2012. CC MEDIA HOLDINGS' revenues increased 3% to $1.36 billion in the first quarter of 2012 compared to $1.32 billion for the same period of 2011. The company noted "excluding the effects of movements in foreign exchange rates,1 revenues rose 4%."
CCM+E revenues were up $39 million, or 6%, during the first quarter of 2012 compared to the same period of 2011, "driven primarily by a $32 million increase related to the Company’s Traffic acquisition," noted the company. The Company experienced increases in national advertising across various markets and advertising categories, including financial services, political and retail. In addition, revenue from the Company’s digital radio services rose as a result of higher volume.
Operating expenses grew $46 million during the first quarter of 2012 compared to the same period of 2011, resulting mainly from a $35 million increase related to the Company’s Traffic acquisition, including severance costs associated with the integration of the business. The Company’s digital initiatives led to higher expenses in connection with the FEBRUARY 2011 purchase of a cloud-based music technology business that has enabled the Company to accelerate the development and growth of the next generation of iHEARTRADIO digital products, including the iHEARTRADIO Player.
CCM+E OIBDAN for the first quarter of 2012 decreased 3% to $215 million from $223 million for the same period of 2011.
"Since the start of 2012, we have continued to invest in our rapidly growing digital products and services, while strengthening our operations to better serve our marketing partners and our consumers," said CEO BOB PITTMAN said. "We have enhanced our ability to help our partners take advantage of the unique size and scale of our media, entertainment and outdoor assets, with a particular focus on multi-platform solutions that no other company is able to deliver."
"Despite the slow advertising recovery, we generated growth of 3% in revenues during our traditionally slow first quarter," added EVP/CFO TOM CASEY. "As a result of a successful debt offering by a subsidiary of CLEAR CHANNEL OUTDOOR HOLDINGS, INC., we were able to apply the special cash dividend proceeds received to enhance our debt maturity profile and liquidity by paying down debt due in 2014. During the remainder of 2012, we plan to continue to invest strategically in our infrastructure, while closely managing our costs."