CC Revenues Drop In Q3
November 10, 2008 at 5:12 AM (PT)
CC MEDIA HOLDINGS, the new entity owning CLEAR CHANNEL, reported a 4% drop in overall revenues year-to-year to $1.7 billion. The drop would have been 5% without a $20.2 million increase due to movements in foreign exchange. Radio revenues fell 7% to $843,943,000; total prime minutes sold and prime average minute rate decreased compared to the third quarter of 2007 The figures were the first quarterly financials released since the company went private earlier this year.
Operating expenses increased 5% to $1.2 billion, including an $18.1 million increase due to movements in foreign exchange and $30.6 million of non-cash compensation expense, compared to non-cash compensation expense of $7.9 million in third quarter 2007.
The Company's income before discontinued operations fell to a loss of $86.1 million, compared to income of $253.4 million for the same period in 2007. The Company's 2008 net income figure included $148.8 million in merger related expenses. The third quarter 2008 net income also included a $9 million loss on the impairment of a nonconsolidated affiliate and a gain of approximately $9.2 million on the sale of portion of its investment in a nonconsolidated affiliate.
CEO MARK MAYS said, "The unprecedented macroeconomic challenges introduced in the third quarter impacted some of our largest advertiser groups almost immediately. As a result, we now share the issues affecting virtually every U.S. business sector. In this context, we think it's significant to note that our third-quarter performance compared favorably to our peers. While Outdoor fared better than Radio last quarter, our topline results reflect softening demand and other dynamics of our business are under pressure. Even as we continue to benefit from our globally diversified footprint, it is more important than ever to manage our expenses tightly. Moving forward, we are intensely focused on mitigating declines in our businesses. We will invest in those areas that are crucial to our future and continue to take stringent measures to lower costs while exerting strict discipline on our capital spending during this difficult period."