CC Media Holdings Reports Q2 Revenues Up 1%
August 2, 2013 at 4:03 AM (PT)
CC MEDIA HOLDINGS has released financial results for the second quarter ended JUNE 30th, 2013. The highlights:
* Revenue grew 1% to $1.6 billion, excluding foreign exchange and divestitures
* Operating Income before Depreciation & Amortization declined 5% year over year to $505 million, excluding foreign exchange and divestitures; OIBDAN margin of 31%
* Extended $5.0 billion of term loans to 2019 from 2016, and exchanged senior notes due 2016 for senior notes due 2021
"During the quarter, we made important progress across our businesses -- delivering overall topline growth in a challenging market while strengthening our digital and national advertising capabilities for the future," said Chairman/CEO BOB PITTMAN. "We are continuing to create innovative, multi-platform solutions for leading national marketers and brands. Emphasizing our focus on connecting consumers to their favorite stations, artists, and content wherever they are, iHEARTRADIO registered users were up 162% from last year’s second quarter and reached the milestone of 30 million registered users in less than two years. Industry research shows that broadcast industry radio listening is also growing -- up 9% over the last decade -- and remains the #1 source of music discovery and the #1 listening choice in the car by a wide margin. At a time when consumers are spending more time out of their homes than ever -- and expect to be connected wherever they are -- both our Media+Entertainment and our Outdoor businesses continue to benefit from our leadership in that out-of-home sweet spot we’re seeing globally. Outdoor generated strong results this quarter by leveraging its growing base of digital displays, both domestically and internationally. We also continued to improve our balance sheet with two opportunistic and transformative debt transactions, and we enhanced our liquidity through both operational improvements and the sale of non-core assets."
Second Quarter 2013 Results
Consolidated revenues increased $16 million, or 1%, year over year, to $1.62 billion in the second quarter of 2013 compared to $1.60 billion in the same period of 2012. The company noted, "excluding the effects of movements in foreign exchange rates, as well as a $9 million impact from the divestiture of businesses during the third quarter of 2012, revenues were up $23 million, or 1%.
* Media+Entertainment revenues increased $13 million, or 2%, driven primarily by national and digital sales, as well as strong growth at PREMIERE NETWORKS. Partially offsetting this growth were revenue declines in the Traffic business from lost contracts and lower sales resulting from integration activities.
* Americas outdoor revenues rose $14 million, or 4%, on a reported basis and 5% adjusted for movements in foreign exchange rates, driven by higher occupancy and capacity on digital bulletins, higher occupancy and rate on traditional bulletins, strong growth in posters, and increased revenue at airports.
* International outdoor revenues declined $1 million, or less than 1%, after adjusting for a $9 million revenue reduction due to the divestiture of businesses during the third quarter of 2012 and a $2 million increase from movements in foreign exchange rates. Strong revenue growth in emerging markets was offset by continued pressures in certain developed markets, where economic conditions remain challenging. On a reported basis, revenues decreased $9 million, or 2%, compared to the same period of 2012.
The Company reported, "OIBDAN decreased 5%, or $27 million, to $505 million for the three months ended JUNE 30th, 2013 compared to $532 million for the same period of 2012. OIBDAN for the three months ended JUNE 30, 2012 included a $21 million expense credit received for a portion of fees previously paid to one of the performance rights organizations, and an $8 million expense benefit from a favorable court ruling at Outdoor Americas. Included in the 2013 second quarter OIBDAN were $14 million of operating and corporate expenses associated with the Company’s strategic revenue and cost initiatives to attract additional advertising dollars to its businesses and improve operating efficiencies compared to $15 million in the same period in the prior year. Second quarter 2013 OIBDAN also included $8 million related to legal and other expenses compared to $6 million in the second quarter of 2012. Excluding the minimal effects of movements in foreign exchange rates and a $2 million reduction due to the divestiture of businesses during the third quarter of 2012, OIBDAN declined $26 million, or 5%, to $505 million."
The Company’s consolidated net income was $7 million in the second quarter of 2013 compared to a consolidated net loss of $39 million in the same period of 2012 due primarily to a $131 million gain on marketable securities related to the sale of an investment in Sirius XM Radio, Inc. Net income was also affected by lower operating income, higher interest expense, costs related to the debt financing activities, and higher taxes driven by the sale of the Company’s investment in Sirius XM Radio, Inc.
* Reaching 34 million iHEARTRADIO registered users as of JUNE 30th, 2013, up 162% from the end of the 2012 second quarter, and crossing the 30 million registered user mark faster than FACEBOOK, TWITTER, SPOTIFY or PANDORA. iHEARTRADIO’s total listening hours were up 36% in the second quarter of 2013 compared to the second quarter of 2012. Mobile represented 61% of iHEARTRADIO total listening hours during the quarter.
* Adding "Talk" to the iHEARTRADIO platform featuring on-demand, listener-created talk content side-by-side with popular talk, business, celebrity, comedy, sports and entertainment episodes from leading national and local personalities and top-rated programming partners such as THE WALL STREET JOURNAL, THE HUFFINGTON POST, UNIVISION, AMERICAN PUBLIC MEDIA, BLOOMBERG, as well as a two-way content partnership with ABC.
* Integrating iHEARTRADIO into the dashboard of 38 current models across just FORD and TOYOTA brands. iHEARTRADIO’s model count is on track to increase significantly in 2013-2014 through previously announced agreements with GM and CHRYSLER.
* Presenting the second annual iHEARTRADIO ULTIMATE POOL PARTY at the FONTAINEBLEAU MIAMI BEACH on JUNE 28th-29th, 2013, hosted by LL COOL J, JASON DERULO and MILEY CYRUS and featuring performances by PITBULL, KE$HA, AFROJACK, ICONA POP and KREWELLA. Brands were integrated into 400,000 promotional spots that aired across CLEAR CHANNEL radio stations during APRIL and MAY, generating 240 million on-air impressions. Contest winners from 40 states attended the event, which was also broadcast live across 120 relevant format CLEAR CHANNEL stations and on iHEARTRADIO, streamed live through YAHOO! MUSIC, and rebroadcast twice on THE CW NETWORK.
* Announcing the 2013 iHEARTRADIO MUSIC FESTIVAL line-up for SEPTEMBER 20th-21st, 2013, at the MGM GRAND in LAS VEGAS, including: JUSTIN TIMBERLAKE, KATY PERRY, J.COLE, ELTON JOHN, MUSE, TIËSTO, CHRIS BROWN, KEITH URBAN, FUN., MIGUEL, BRUNO MARS, PHOENIX, ZEDD, MAROON 5, TIM MCGRAW, KE$HA, THIRTY SECONDS TO MARS, BENNY BENASSI, and a rare live appearance by QUEEN + ADAM LAMBERT. RYAN SEACREST returns as the host.
* Entering into three additional market-based agreements with record labels -- FEARLESS RECORDS, DUALTONE MUSIC GROUP, INNOVATIVE LEISURE -- to share digital and terrestrial revenues in a way that will build a sustainable business model to drive the growth of the Internet radio industry. To date, CLEAR CHANNEL has entered into 18 innovative agreements with record labels. In addition, CLEAR CHANNEL signed the first direct performing rights partnership between a radio company and an artist -- FLEETWOOD MAC -- that will enable the group to receive revenue from airplay on CLEAR CHANNEL’s digital and broadcast radio platforms.