Clear Channel Q1: Overall Up, But Radio's Down
May 9, 2008 at 5:43 AM (PT)
CLEAR CHANNEL COMMUNICATIONS has reported results for its first quarter ended MARCH 31st, 2008. The Company reported revenues of $1.6 billion in the first quarter of 2008, a 4% increase over the $1.5 billion reported for the first quarter of 2007. Clear Channel's expenses increased 8% to $1.1 billion during the first quarter of 2008 compared to 2007.
CLEAR CHANNEL's income before discontinued operations increased 70% to $161.4 million, as compared to $95.1 million for the same period in 2007. The Company's diluted earnings before discontinued operations per share increased 68% to $0.32, compared to $0.19 for the same period in 2007.
The Company's OIBDAN (defined as Operating Income before Depreciation & Amortization, Non-cash compensation expense and Gain on disposition of assets - net) was $394.8 million in the first quarter of 2008, a 6% decrease from the first quarter of 2007.
Radio revenue declined $29.6 million during the first quarter of 2008 as compared to the same period of 2007. Declines in local and national revenues were partially offset by increases in traffic, online and syndicated radio revenues.
Operating expenses declined $10.4 million primarily related to a decline of $11.5 million in programming expenses attributable to outside research and salaries partially offset by increases in syndicated radio and other infrastructure support expenses. A decline in advertising expenses and a decline in commission expenses associated with the revenue decline also contributed to the overall decline in expenses.
"We continued to execute on our strategic plan during first quarter in the face of a challenging macro-economic climate," commented CEO MARK P. MAYS. "While our results were affected by the soft advertising market, we continued to out-deliver the majority of our media industry peers. We are solidly on track in rolling out our digital installation plan, which continues to strengthen our long-term growth potential. Our radio operations out-performed the majority of our markets in the quarter and we continued to invest in our content and online assets in an effort to strengthen our value proposition to both our listeners and advertisers."