CC Media Holdings Sees Revenue Increase In Q3, Net Loss Narrows

Revenues Up

CC MEDIA HOLDINGS, INC. third-quarter revenues increased $4 million to $1.59 billion. Excluding the effects of movements in foreign exchange rates, revenues rose 2% ($29 million). 

CLEAR CHANNEL MEDIA + ENTERTAINMENT saw revenues grow 1% to $799 million, mostly due to a 3% rise in radio revenues (excluding the acquired traffic business), including increased national advertising, digital radio services, and the iHEARTRADIO MUSIC FESTIVAL; advertising categories showing strong growth included automotive, political, telecommunications, and media and publishing.  AMERICA's outdoor revenues rose 2% and international outdoor revenues rose 1%m excluding the effect of movements in foreign exchange rates.

The Company’s consolidated net loss fell from $67 million to $39 million.

“We are continuing to deliver solid results in a difficult economy, while investing in our digital future and growing the value we provide to our marketing partners with bold, new offerings across multiple platforms," said CEO BOB PITTMAN.

“Increased revenues from major national advertisers drove improved performance at Media & Entertainment in the quarter. The successful return of the iHEARTRADIO MUSIC FESTIVAL drew record audiences and attracted a diverse array of major brand sponsors. To help achieve a sustainable business model that will spur the growth of digital radio, we forged our second music rights agreement with an independent record label. At our Outdoor business, we have made substantial progress in optimizing our operations in the U.S. to maximize our revenue and profit potential, while taking the necessary steps to adjust to the new economic realities in EUROPE.”

“We continue to focus on driving growth across all of our businesses, investing in new growth opportunities and improving our operations, while closely managing our expenses,” EVP/CFO TOM CASEY said. “In addition, with significant support from our lenders, last week we exchanged $2 billion of credit facility loans for notes maturing in 2019 in a private offer that was significantly oversubscribed and attained an important package of amendments to our credit facilities that provides more flexibility to manage our liquidity and debt maturity profile in the future.”

On the company's conference call, CASEY said that the company's attempts to bring more national advertising to its properties is "paying off," and the transition of CCM+E from a radio company to a multi-platform company is continuing, touting the development of iHEARTRADIO and the iHEARTRADIO MUSIC FESTIVAL, but noted the addition of two major-market radio stations, Talk WOR-A/NEW YORK and Adult Hits WHBA (101.7 THE HARBOR, formerly Alternative WFNX)/BOSTON, as an example of the company's commitment to radio.  CASEY said that national sales rose 7% while local radio sales were "flattish."  He noted that the company's pacing this FALL is showing gains based on political ad spending (predicting about $120 million), although he declined to state how the company would be doing if political ads were not included.  He added that iHEARTRADIO has shown "terrific growth" with 125 million downloads and upgrades plus 100% year-to-year growth in listener hours.  "This was a big quarter for us," CASEY said.  On the company's deals with music labels, CASEY said that "this is an important area for the company" and said that CC has had an "ongoing dialogue" with labels but declined to disclose more details.  And on the radio acquisitions, CASEY said that the company is "still working through" plans for WOR but that decisions have not been reached.

The company's CLEAR CHANNEL OUTDOOR HOLDINGS, INC. subsidiary CLEAR CHANNEL WORLDWIDE HOLDINGS, INC. has commenced a cash tender offer for all of its $500 million outstanding aggregate principal amount of its 9.25% Series A Senior Notes due 2017 and its $2.0 billion outstanding aggregate principal amount of its 9.25% Series B Senior Notes due 2017.  The offer, expiring on DECEMBER 3rd at 11:59p (ET), gives valid tenders before 5p (ET) NOVEMBER 16th $1,074.38 per $1,000.00 principal amount, and offers later tenders $1,044.38 per $1,000.00 principal amount.  WORLDWIDE is also offering $735,750,000 aggregate principal amount of Series A Senior Notes due 2022 and $1,989,250,000 aggregate principal amount of Series B Senior Notes due 2022 in a private offering, proceeds to be used to pay the consideration in the tender offer.

« see more Net News