Clear Channel Media Q1 Revenue Flat,CCM+E Revenue Dips 2%
Cites Revenue Sharing Deals With 11 Labels
May 2, 2013 at 2:21 PM (PT)
CLEAR CHANNEL MEDIA HOLDINGS reported first-quarter revenue declined less than 1% to $1.3 billion, excluding foreign exchange and divestitures. CLEAR CHANNEL MEDIA + ENTERTAINMENT saw a revenue decline 2%, or $15 million, or 2%.
CCM+E's revenue decline was "driven primarily by the traffic business as a result of certain contract losses and lower sales resulting from integration activities, and to a lesser extent by PREMIERE, whose performance continued to improve over the quarter. Offsetting these declines was strength in the stations, particularly in national and digital revenues," its quarter statement noted.
"Operating expenses decreased $14 million during the first quarter of 2013 compared to the same period in 2012. This decline was driven by a decrease in traffic costs and music license fees, partially offset by increased digital costs as well as increased expenses related to the growth of our national advertising program. Expenses in the first quarter of 2013 also reflect a $4 million decrease in expenses related to investments in strategic revenue and cost savings programs."
CCM+E's "OIBDAN decreased $1 million, or less than 1%, to $213 million in the first quarter of 2013, including expenses related to investments in strategic revenue and cost savings programs of $1 million."
"The strength of our businesses was clear in the company’s solid first quarter results, which included growing returns from our strategic investments in key digital assets," CEO BOB PITTMAN said. "Across the company, we are creating unique, engaging solutions for clients that use our unparalleled multi-platform reach. With our advertisers, we are innovating new ways to use our assets to reach consumers more effectively wherever they are -- which is increasingly out of their homes. Rather than staying in their connected homes as once predicted, people are now making more mobile connections than ever before. This trend toward the connected consumer plays to the strengths of CLEAR CHANNEL in broadcast and digital radio and outdoor displays, and we are beginning to make progress in monetizing it."
The Q1 earnings report also noted that CCM+E "continued to enter into innovative, market-based agreements with record labels -- including EONE, WIND-UP RECORDS, and ROBBINS ENTERTAINMENT -- to share digital and terrestrial revenues, building a sustainable business model to drive the growth of the Internet radio industry. To date, CLEAR CHANNEL has entered into 11 agreements with record labels representing artists including TAYLOR SWIFT, TIM MCGRAW, RASCAL FLATTS, REBA MCENTIRE, MUMFORD & SONS, EVANESCENCE, CREED, and SEETHER."