Clear Channel Media Holdings, Radio Both Up 4% in Q2
More National Advertising, Less Play-By-Play Helps CCR Bottom Line
August 9, 2010 at 3:29 PM (PT)
CLEAR CHANNEL RADIO 's Q2 performance mirrored that of parent company CLEAR CHANNEL MEDIA HOLDINGS, as both say their revenues increase by 4%. The radio division made $748,738,000, up from $717,567,000 in Q2 '09.
According to its figures $24.2 million of the $31.2 million increase was primarily driven by an increase in national advertising, as well as an increase in spot rates. Advertising categories showing a renewed interest in CCR air time include retail, food and beverage, telecommunications and automotive.
CCCR was also able to cut operating expenses by $22.2 million during the second quarter of 2010 through its "restructuring program" as well as nonrenewals of sports contracts," among other things.
Discussing the company's performance as a whole, CC MEDIA HOLDINGS PRES./CEO MARK MAYS stated: "Our second-quarter results reflect the positive impact of the global advertising market recovery combined with the ongoing execution of our strategic plan to maximize our performance and improve profitability across our operations. During the quarter, we saw improvement in both revenue and profit margins across our radio and outdoor platforms. The fundamentals of our business are clearly improving, as we return to revenue growth and attain the benefits of our cost reduction efforts.
"Our assets represent an exceptional platform for reaching and influencing millions of consumers across the globe," he continued. "As a result of our restructuring efforts, including the successful divestiture of non-strategic assets during the past year, we are now a more efficient and focused company, positioned to drive returns for our shareholders. Given the ongoing momentum we are seeing across our business, we remain optimistic regarding our growth prospects for the full year."
Read the full report here.
Stock Buyback. Too
CLEAR CHANNEL COMMUNICATIONS also announced a stock buyback program under which it may buy up to $100 million of the Class A common stock of indirect subsidiary CLEAR CHANNEL OUTDOOR HOLDINGS, INC. and/or its indirect parent, CC MEDIA HOLDINGS, INC.