Clear Channel: Q2 Revenue Up, Income Off
August 8, 2006 at 6:09 AM (PT)
CLEAR CHANNEL second quarter revenue rose 7% overall to $1.9 billion, while radio revenues showed a 6% increase to $983.523 million. Income before discontinue operations fell 7%, however, to $197.5 million (40 to 39 cents/diluted share).
Once again, the company's "Less is More" initiative resulted in increases in the percentage of 15 and 30 second spots sold versus total inventory. The company also said that its top 25 markets had the highest revenue growth of any of its markets, with services, automotive, and retail performing best among ad categories.
"We remain very optimistic about our growth prospects in 2006," CEO MARK MAYS said in a press release. "Our operating momentum has continued into the current quarter. Our radio division's performance surpassed our expectations and once again far outpaced the industry. Our top 25 radio markets performed particularly well, generating the highest percentage growth of any of our markets. And our outdoor business continued the trend of posting consistently strong revenues and profits, with considerable gains from the fast-growing sunbelt markets in the U.S., as well as solid results in FRANCE, ITALY, and TURKEY."
"Our second quarter results reflect strong growth and healthy fundamentals across our operations," added Pres./CFO RANDALL MAYS. "As we continue to convert our audience gains into top-line growth, we will continue to generate profitable returnsfor our shareholders. Looking ahead, our solid balance sheet and tremendous financial flexibility support our efforts to maximize the value of our assets."