Clear Channel Q3 Revenues Rise
October 30, 2006 at 6:01 AM (PT)
CLEAR CHANNEL COMMUNICATIONS' third quarter revenue rose 7% to $1.79 million, and radio revenue saw a 5% increase to $962.1 million, resulting in income before discontinued operations increasing 8% to $185.9 million (32 to 38 cents/diluted share).
Net income overall dropped 9.5% to $185.9 million, but the 2005 figures included the former CLEAR CHANNEL ENTERTAINMENT division, which was spun off as LIVE NATION and was not included in 2006's numbers. The company credited increases in national ad revenues, driven by increases in yield and average unit rates, for the increase in radio revenue, with the top 50 markets growing at a faster pace than smaller markets. Autos, retail, and entertainment were the strongest ad categories for the quarter. The numbers matched or slightly exceeded most analysts' estimates.
CEO MARK MAYS said in a press release that CLEAR CHANNEL is "one of the best performing companies in the media industry. Our healthy fundamentals and solid growth highlight the superior positioning of our assets and the emerging benefits of our concerted investment strategy. We are capitalizing on our diverse portfolio of out-of-home media properties to meet the shifting demands of the global media marketplace. Our radio division once again outperformed the industry, demonstrating the strength of our brands in connecting with our audiences. Our outdoor division continues its track record of robust growth, posting considerable revenue gains year-over-year. Looking ahead, we continue to maintain strong operating momentum and we are hopeful that we can continue to convert our revenue gains into profitable returns for our shareholders."
Pres./CFO RANDALL MAYS added that the company "generated strong results in the third quarter, demonstrating the scale and operating leverage in our business model. Even as we continue to invest in our content and distribution assets to position our company to excel over the long-term, we are converting our revenue growth into profitable and tangible cash flows."