Clear Channel Q2 Revenues Up 5%; Radio Up 1%
July 27, 2007 at 5:46 AM (PT)
CLEAR CHANNEL COMMUNICATIONS reported results for its second quarter ended JUNE 30, 2007. The Company reported revenues of $1.8 billion in the second quarter of 2007, an increase of 5% from the $1.7 billion reported for the second quarter of 2006. CLEAR CHANNEL’s operating expenses increased 6% to $1.1 billion during the second quarter of 2007 compared to 2006.
CLEAR CHANNEL’s income before discontinued operations increased 21% to $208.7 million, as compared to $172.6 million for the same period in 2006. The Company’s diluted earnings before discontinued operations per share increased 24% to $0.42, compared to $0.34 for the same period in 2006. CLEAR CHANNEL’s net income increased 19% to $236.0 million in the second quarter 2007 as compared to $197.5 million in the second quarter of 2006 and diluted earnings per share increased 23% to $0.48, compared to $0.39 for the same period in 2006.
CEO MARK P. MAYS commented, "Our second-quarter radio revenues were ahead of the industry, while our outdoor unit continued to post solid growth. We continue to make progress in strengthening our diverse portfolio of out-of-home media properties. Our focus remains on transitioning our assets to meet the shifting demands of our audiences, as well as our advertisers by offering compelling content, expanding our distribution capabilities and investing in our brands."
The Company’s radio revenue increased 1% during the second quarter of 2007 as compared to 2006 primarily from an increase in its syndicated radio programming, traffic and online businesses. The Company’s mid-size markets also contributed to the revenue growth. Average unit rates for 15, 30 and 60 second commercials increased in the second quarter of 2007 compared to the same period of the prior year.
The Company’s radio operating expenses decreased approximately $6.7 million during the second quarter of 2007 as compared to 2006 primarily from a decline in selling expenses and expenses associated with non-traditional revenue. Partially offsetting the decrease was an increase from expenses in the Company’s traffic and on-line operations associated with increased revenues in these businesses.
Proposed Merger Transaction
On MAY 17, 2007, the Company amended its agreement to be acquired by a group of private equity funds led by BAIN CAPITAL PARTNERS, LLC and THOMAS H. LEE PARTNERS, L.P. to provide for an increase to $39.20 per share in the price shareholders will receive in cash for each share of common stock they hold. As an alternative to receiving the $39.20 per share cash consideration, the Company’s unaffiliated shareholders will be offered the opportunity, on a purely voluntary basis, to exchange some or all of their shares of common stock on a one-for-one basis for shares of Class A common stock in the new corporation formed by the private equity group to acquire the Company. In addition, each shareholder will be entitled to receive additional per share consideration (as described in the merger agreement) if the merger closes after JANUARY 1, 2008.