Clear Channel Reports Q1 Financials, CCM+E Revs Up 2% As Long Term Debt Remains High
April 24, 2014 at 5:30 AM (PT)
CC MEDIA HOLDINGS has reported financial results for the first quarter ended MARCH 31st, 2014.
- Revenues totaled $1.3 billion, including 2% growth at MEDIA+ENTERTAINMENT and 2% decrease at Outdoor
- OIBDAN reached $261 million, including a 24% increase at International Outdoor, a 6% decrease at MEDIA+ENTERTAINMENT and an 11% decrease at Americas Outdoor
- Long-term Debt (including current portion of long term debt) remained high in Q1 2014 at $20,424.4 billion compared to $20,484.2 billion in Q4 2013
“We continued to make progress this quarter in advancing our strategy of providing customized, multi-platform market solutions that nobody else can,” Chairman/CEO BOB PITTMAN said. “In keeping with our promise to be everywhere our listeners want to find us, our MEDIA+ENTERTAINMENT business continued to build strong partnerships -- making iHEARTRADIO available on AMAZON FIRE TV, APPLE’s CAR PLAY and the SAMSUNG GEAR 2 SMARTWATCH.
"Our growing events business, which is extending the iHEARTRADIO brand across an increasing number of media platforms, successfully staged the first-ever iHEARTRADIO COUNTRY MUSIC FESTIVAL in AUSTIN. Another newcomer to our events lineup, the iHEARTRADIO MUSIC AWARDS, will be televised live from LOS ANGELES on NBC on MAY 1st.
"At Outdoor, we launched ‘Connect,’ the first global out-of-home mobile interactive advertising platform that enables customers to access interactive content via their smartphones. We are also enhancing our Americas Outdoor national sales capabilities and optimizing our global digital footprint.”
“Despite a difficult advertising environment due to disruptive winter weather across the U.S., we maintained our level of consolidated revenues, and also continued to invest in our businesses, to reinforce our foundation for growth,” said Pres./CFO RICH BRESSLER. “At MEDIA + ENTERTAINMENT we flattened our management structure in order to move us closer to the business and make it run more efficiently, better serving our listeners and advertising partners, while staying focused on managing our expenses at both Americas and International Outdoor.
First Quarter 2014 Results
The company reports consolidated revenues were essentially flat in the first quarter of 2014 compared to the same period of 2013. Excluding the effects of movements in foreign exchange rates, revenues declined $1.0 million or less than 1%.
- MEDIA+ENTERTAINMENT revenues grew $14 million, or 2%, primarily reflecting increases at our traffic and weather business, as well as stronger national and digital advertising.
- Americas outdoor revenues decreased $18 million, or 6%, driven mainly by the absence of revenue from the 77 digital bulletins in LOS ANGELES that were turned off due to a court ruling, and lower revenues at airports due to contracts that were not renewed. Partially offsetting these declines was higher capacity and occupancy of digital bulletins in other markets.
- International outdoor revenues rose $3 million, or 1%. Revenue growth in emerging markets including CHINA, as well as developed markets including the U.K. and FRANCE, was partly offset by declines in other countries, including those in NORTHERN and EASTERN EUROPE, primarily due to challenging macroeconomic conditions.
The Company’s operating income before depreciation and amortization was down 2%, or $6 million, to $261 million for the three months ended MARCH 31st, 2014, versus $267 million for the same period of 2013. Included in the 2014 first quarter OIBDAN of $261 million were $3 million and $10 million of operating and corporate expenses, respectively, associated with the Company’s strategic revenue and efficiency initiatives to attract additional advertising dollars to its businesses and improve operating efficiencies. OIBDAN for the three months ended MARCH 31, 2013 included $8 million and $1 million of such expenses, respectively.
The consolidated net loss attributable to the Company was $424 million in the first quarter of 2014 compared to a consolidated net loss attributable to the Company of $203 million in the same period of 2013. The increase was primarily attributable to non-cash deferred income taxes, as well as higher interest expense, and equity in losses of non-consolidated affiliates.
- Sponsoring the first-ever, single-source advertising return on investment (ROI) study in the radio sector by NIELSEN AUDIO and NIELSEN CATALINA SOLUTIONS that showed radio delivering a sales lift of more than $6 for every $1 spent on radio -- an ROI which AD AGE reported doubled that of even the best results from recent studies of digital or TV media, with one retail brand recording a sales lift of more than $23 per dollar invested in radio.
- Reaching 47 million iHEARTRADIO registered users, as of MARCH 31st, 2014, growing 66% year over year. iHEARTRADIO’s total listening hours were up 13% over the first quarter of 2013, while downloads and upgrades increased to 327 million. Mobile represented 56% of iHEARTRADIO total listening hours during the first quarter of 2014.
- Flattening MEDIA+ENTERTAINMENT’s senior management organization through the creation of a Major Markets Operating Group led by four of CLEAR CHANNEL’s leaders to accelerate decision-making, increase flexibility and enhance focus on all of MEDIA+ENTERTAINMENT’s multi-platform assets. This operational management team will better serve advertising partners with enhanced communication, collaboration and more efficient access to CLEAR CHANNEL’s full range of broadcast, digital and events assets, as well as overall company resources, including research, revenue management, strategic analysis, corporate strategy and business affairs.
- Combining the Connections and National Digital sales teams into one strong, integrated multi-platform sales team aligned against all of CCM+E’s assets to take advantage of the tremendous success of both the company’s digital business, spurred by its advances in mobile, and the unparalleled reach of its multi-platform products and services, including radio, mobile and innovative events. This realignment leverages CLEAR CHANNEL’s strength as a multi-platform media company -- effectively doubling the number of people focused on the largest national revenue opportunities and accelerating the company’s ability to capture them.
- Launching the iHEARTRADIO COUNTRY MUSIC FESTIVAL -- featuring the biggest names in Country music, including LUKE BRYAN, JASON ALDEAN and CARRIE UNDERWOOD. Sponsored by NBC’s THE VOICE, STATE FARM and JIM BEAM among others, the event was streamed live on CMT, generating visits that averaged nearly 50 minutes of viewing time, the highest ever for a CLEAR CHANNEL event.
- Integrating iHEARTRADIO with AMAZON FIRE TV, which will provide consumers instant access to more than 1,500 live radio stations across the country and hand-curated iHEARTRADIO digital-only stations, as well as the ability to create their own stations from a library of more than 450,000 artists and 18 million songs -- all for free.
- Launching iHEARTRADIO into the rapidly growing “wearables” market as the first digital radio service available on the SAMSUNG GEAR 2. This integration allows SAMSUNG GEAR 2 users to control remotely their iHEARTRADIO smartphone app easily from their wrist.
- Reaching additional digital music and promotional revenue-sharing agreements to help drive the growth of Internet radio with independent country music label BBR MUSIC GROUP and with STARDOME MEDIA GROUP, a major media and entertainment company focused on the U.S. Hispanic and Latin American marketplaces.
- Creating a new unified Networks group to take full advantage of CLEAR CHANNEL’s reach and scale to deliver compelling content opportunities to partners, affiliates, advertisers and consumers. The Networks Group includes PREMIERE NETWORKS, TOTAL TRAFFIC and WEATHER NETWORK, THE 24/7 NEWS NETWORK and the recently announced, iHEARTRADIO NETWORKS, new unified digital sales platform that offers advertising partners exciting opportunities to capitalize fully on MEDIA+ENTERTAINMENT’s #1 reach and scale using the company’s powerful networks of assets to reach targeted consumer groups -- such as Country, Hispanic, African-American, Millennial, Women, Men and Holiday – in a cost-efficient way that provides greater ROI for advertisers.
- Partnering with NBC to create and televise the first-ever iHEARTRADIO MUSIC AWARDS on NBC, which will showcase the biggest artists and songs, with live performances from various venues across LOS ANGELES on MAY 1st.
- Co-hosting with TARGET the iHEARTRADIO Album Release Party for recording artist SHAKIRA’s newest self-titled album “SHAKIRA” at the iHEARTRADIO THEATER in BURBANK, CA (where KATY PERRY debuted her album last year). The event was broadcast live across more than 100 CLEAR CHANNEL radio stations nationwide.