Clear Channel Q3 Revenues Up 7%
Radio Up, 7%, Too
October 31, 2011 at 1:45 PM (PT)
CC MEDIA HOLDINGS had good news to report on its Q3 earnings, as revenues increased 7% to $1.58 billion in the quarter compared to $1.48 billion in the third quarter of 2010, driven by growth across its businesses. Excluding the effects of movements in foreign exchange rates, revenues rose 6%. WESTWOOD ONE's business brought in $41 million.
Radio revenues grew $55 million, or 7%, compared to the third quarter of 2010, due primarily to the Company’s acquisition of WESTWOOD ONE’s traffic business, which accounted for a $41 million increase in revenue, and an increase in national advertising revenues. National advertising revenues rose $13 million on improved average rates per minute, with revenue growth across such categories as restaurants, automotive and utilities. Revenues from the Company’s digital radio services were also higher as a result of increased volume and revenues related to the iHEARTRADIO MUSIC FESTIVAL.
While the press release didn't specify exactly how much revenue the iHEARTMUSIC FESTIVAL generated, it also didn't specify how much it cost to hold. With that said, while radio's revenues increased 7%, its expenses rose 12%.
The Company’s consolidated net loss to $67 million for the quarter, compared to a loss of $150 million for the same period in 2010.
"This quarter’s solid performance and innovation across our businesses underscore my excitement about taking a leadership role at CLEAR CHANNEL," CEO BOB PITTMAN said. "Not only did we leverage the power of our national radio platform to launch the New iHEARTRADIO with the biggest music festival in radio history, but our outdoor businesses keep generating impressive revenue growth in multiple markets and display types, both in the Americas and Internationally. Across all of our platforms, we are creating unique media experiences that translate into even stronger connections with consumers around the world."
"During this quarter, we continued to benefit from the global diversification of our portfolio and the industry leadership of our assets," EVP/CFO TOM CASEY added. "In addition to delivering our seventh consecutive quarter of revenue growth, we continued to make progress in managing our liquidity and debt maturity profile while investing in the Company. Looking ahead, we are confident about our ability to keep driving future growth thanks to the leadership of our businesses, innovations across our company and a continued focus on managing our expenses."