Clear Channel Q1 Revs Up, Q2 Radio Pacing Down; 10% Stake Offered To Shareholders
April 26, 2007 at 5:46 AM (PT)
CLEAR CHANNEL COMMUNICATIONS' first-quarter revenues rose 8% to $1.6 billion (6% excluding foreign exchange-related increases). Radio revenues rose 3% to $819.7 million, with outdoor up 15% to $690.9 million. Net income rose 6% to $102.2 million, with diluted earnings per share up 11% to 21 cents.
The company credited the rise in radio revenues to an increase in national revenues plus growth in its top 100 markets and in its syndication, traffic, and online businesses. Services, telecommunications, retail, and health and beauty advertising led the growth. CLEAR CHANNEL also noted an increase in 15- and 30-second commercials as a percentage of total inventory.
CEO MARK MAYS said, "The company delivered solid first-quarter results, and we are very pleased with our overall performance. We want to thank and congratulate all of our employees, who work extremely hard every day to help CLEAR CHANNEL achieve its goals and objectives."
CLEAR CHANNEL says that radio revenues are pacing down 1.6% for second quarter and down 0.6% for full year 2007. Outdoor revenues are pacing up 6.7% for second quarter and 5.9% for the year.
Proxy Says Buyers Had Offered 10% Stake To Shareholders
A regulatory document released WEDNESDAY confirms the private-equity firms leading a buyout of CLEAR CHANNEL sought to offer shareholders up to a 10% stake in the surviving company to clinch support for the deal.
Two weeks ago, according to a proxy statement, THOMAS H. LEE and BAIN told CLEAR CHANNEL's board they would pay $38.50 a share "in either, or a combination of, cash and/or shares of stock in the surviving corporation," at the discretion of each shareholder. The amount of equity would be capped at 10% of CLEAR CHANNEL's outstanding shares.
The equity -- called contingent value rights -- would allow CLEAR CHANNEL investors to share in proceeds if sales of non-core radio and television assets exceeded $2 billion. Shareholders also could collect up to an additional $2 a share if the growth rate of the company's radio business exceeded 2% a year, according to the proxy filed with the SEC.