CC Media Holdings First Quarter Revenues Increase 5%
Radio Revenue Increased $17 million, Up 3%
May 6, 2011 at 5:26 AM (PT)
CC MEDIA HOLDINGS, INC. has reported results for the first quarter ended MARCH 31, 2011. Revenues grew 5% to $1.32 billion in the first quarter of 2011 compared to $1.26 billion in the first quarter of 2010, "driven by growth across its businesses from an improved advertising environment." Revenues would have increased 4% excluding the effects of foreign exchange rates. Overall, the company posted a first-quarter loss of $131.8 million, compared with a prior-year loss of $175.4 million.
We generated growth in advertising revenues across our businesses, including gains in multiple markets and categories in our radio segment.
* Radio revenue increased $17 million, or 3%, compared to the first quarter of 2010 primarily from increases in local advertising.
* Americas outdoor revenue increased $18 million, or 7%, compared to the first quarter of 2010, driven by revenue growth across most of the Company’s display types, particularly digital.
* International outdoor revenue increased $23 million, or 7%, compared to the first quarter of 2010, primarily as a result of increased street furniture sales and an increase from movements in foreign exchange. Excluding the effects of foreign exchange, revenues were up 4%.
As a result of higher revenues coupled with smaller increases in expenses, the Company’s OIBDAN (operating income before depreciation and amortization) grew 20% compared to the first quarter of 2010. OIBDAN was $314 million for the first quarter of 2011 compared to $261 million for the first quarter of 2010. The Company’s net loss in the first quarter of 2011 improved to $132 million compared to a loss of $175 million for the same period in 2010.
"Our first quarter results reflect continued improvement in the advertising environment globally, combined with the ongoing execution of our business plan," said EVP/CFO TOM CASEY. "We generated growth in advertising revenues across our businesses, including gains in multiple markets and categories in our radio segment, as well as increased revenues across many of our outdoor markets. These gains, combined with a disciplined approach to cost management, led to further improvement in our overall operating profit margin. Looking ahead, we remain focused on maximizing our leadership position by driving innovation across our operations, growing market share and converting our top line performance into improved returns for our shareholders."
The company reported radio broadcasting revenue increased $17.1 million, or 3%, during the first quarter of 2011 compared to the same period of 2010, driven primarily by increases of $10.6 million in local advertising and $7.4 million from digital, traffic and other revenues. The increases were partially offset by a slight decline in national advertising. The increase in local advertising revenue was primarily a result of increased average rates per minute. Increases in advertising occurred across various markets and advertising categories including automotive, entertainment and financial services.
Overall operating expenses decreased $11.9 million during the first quarter of 2011 compared to the same period of 2010, primarily from an $11.7 million decline in expenses incurred in connection with the Company’s restructuring program as well as lower programming costs. The decline was partially offset by a slight increase in legal and professional costs primarily related to the Company’s digital player initiative.
Radio broadcasting OIBDAN for the first quarter of 2011 increased 15% to $223 million from $194 million for the same period of 2010. The growth in revenues, along with a reduction in expenses, drove the OIBDAN growth.
No Replacement Found For Mark P. Mays
CLEAR CHANNEL also noted that no replacement has been found for MARK P. MAYS, writing "The Board has been actively searching for a replacement but, to date, has not identified a permanent successor."