Great Fourth Quarter Financial News From Katz Media

Sees Strong Q4

Building on strong momentum from Q3 National Spot Radio pacing numbers that are up 15% -- early pacings for Q4 are showing growth of 50% over last year. That’s the word in the latest market update memo that KATZ MEDIA CEO STU OLDS shared with clients this morning.

Through JULY, National Spot Radio is up more than 16% compared to the same period last year. Based on the pacing of business on the books as of TODAY (8/16), the third quarter is pacing up 15% and SEPTEMBER is up 22%. While these pacing numbers only reflect business on the books as of TODAY, they show strong momentum for the fourth quarter, which is pacing at more than 50% growth compared to last year’s period.

Wrote OLDS, "These numbers represent a very solid first seven months of growth and are an indicator of the momentum carrying through the remainder of 2010. Our core business is driving these results, but we’re also benefiting from an active political season."

Core Category Support

National Spot Radio’s top seven categories (excluding political) are all pacing up in the third and fourth quarters. With the exception of finance in the third quarter, all are up double-digits in the third and fourth quarters vs. 2009 actual revenue.

                                           Q1            Q2            Q3            Q4
Retail                               +8.8%      +22.6%    +18.7%   +109.0%
Finance                           +2.7%       -16.8%     +2.6%      +21.5%
Entertainment                +29.7%     -11.3%    +20.5%    +37.8%
Auto                                 +33.4%     +29.4%    +23.6%    +55.6%
Telecom                         +21.6%     +38.0%    +15.3%    +65.0%
Consumer Products    +30.6%     +32.4%    +13.3%     +39.3%
Prof. Services                +14.4%     +29.6%    +26.0%     +15.5%

The largest spenders by category represent the depth and breadth of National Spot Radio’s broad-based recovery. For Q3/Q4:

Retail: SAFEWAY, SUPERVALU, WAL-MART, HOME DEPOT, KOHL’S, LOWE’S, FAMOUS FOOTWEAR, TJ MAXX, MARSHALLS, JC PENNEY, TARGET

Finance: GEICO, JP MORGAN/CHASE, ALLSTATE, PNC, AMERICAN EXPRESS, WELLS FARGO, CAPITAL ONE, AMERICAN FAMILY, STATE FARM, SUNTRUST

Entertainment: COMCAST, SONY, FOX, ESPN, TURNER, BUENA VISTA, NBC

Auto: HONDA, CHEVROLET, MINI, VOLVO, FORD, AUTO TRADERS, TOYOTA PARTS, GM, HYUNDAI, LEXUS

Telecom: VERIZON, AT&T, CLEAR WIRELESS, US CELLULAR, CRICKET, METRO PCS

Consumer Products: BOAR’S HEAD, PALM INC., P&G, KRAFT, GLAXOSMITHKLINE, BUMBLE BEE, UNILEVER, WRIGHT BACON, ARMOUR-ECKRICH

Professional Services: UPS, H&R BLOCK, ACE CASH EXPRESS, KAISER PERMANENTE

OLDS continued, "National Spot’s broad-based recovery is reflected across all market groupings. Both the third- and fourth-quarter pacings for tracked market segments are up double digits. In the third quarter, 55 of the top 100 markets gained more than 10%, and in the fourth quarter current pacing indicates 94 of top 100 markets are up double-digits:

NEW YORK (+15%/+59%); BOSTON (+42%/+64%); SF (+15% /+67%); HOUSTON (+18%/+61%); PHILADELPHIA (+13%/+123%); DETROIT (+38%/+74%); MIAMI (+40%/+86%); TAMPA (+47%/+133%); BALTIMORE (+31%/112%); COLUMBUS (+64%/+85%); OK CITY (+42%/+93%); KNOXVILLE (+71%/+159%); and AKRON (+50%/+228%).

"The political season is heating up, as the AUGUST through ELECTION DAY period for political/issue expenditures accounts for almost 75% of total year political/issue spending. The strength of additional political pressure on inventory will continue to push the pacing trends," concluded OLDS.

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