CC Media Holdings Revs Down 23%
April 20, 2009 at 5:21 AM (PT)
CC MEDIA HOLDINGS, the company that owns CLEAR CHANNEL, said in a filing its preliminary first-quarter revenue totaled $1.2 billion, down 23% from $1.56 billion the year earlier, reports THE WALL STREET JOURNAL. The decreasing revenue is likely to drive down the company's bond prices as investors fret that CLEAR CHANNEL might have trouble honoring its agreements with lenders.
"CLEAR CHANNEL doesn't yet have a date for reporting full earnings for the quarter ended MARCH 31st, continued THE JOURNAL. "It also said in the filing with the Securities and Exchange Commission that certain expenses, including its operating expenses, dropped by 12% to $995.9 million. Those expenses include restructuring costs of $33.6 million in the first quarter.
"The company's total debt as of MARCH 31st is $21 billion, compared with $5.9 billion the year earlier. The company took on $15.7 billion in debt to fund its privatization, which closed JULY 30, 2008.
"CLEAR CHANNEL didn't flesh out many details in its filing, leaving investors to wait for its full earnings report for its cashflow numbers, net income, and latest leverage ratio. Last month, MOODY's downgraded CLEAR CHANNEL's debt by four notches and said there was a 'high probability' that the company would run afoul of its financial covenants with lenders."