CC: Radio Revenue Up 3% in Q3
“Solid results in a difficult
That’s the theme sounded by CEO Bob Pittman in
describing the new financial results from CC Media Holdings, parent of the
largest U.S. commercial radio company.
Pittman said increased
revenues from major national advertisers led to “improved performance” at CC’s Media
& Entertainment business, which includes radio, in the third quarter.
“The successful return of the iHeartRadio Music Festival drew
record audiences and attracted a diverse array of major brand sponsors.” Pittman
also noted the company’s recent direct music rights agreements with record
labels, which it believes will help it “achieve a sustainable business model
that will spur the growth of digital radio.”
President and Chief Financial Officer Tom Casey said the company’s recent debt management
moves give it “more flexibility to manage our liquidity and debt maturity
profile in the future.”
Overall revenues at the parent
company increased $4 million to $1.59 billion in the quarter compared to a year
earlier. Putting aside the effect of foreign exchange rates, CC Media Holdings’
revenues rose 2%.
At the Media and Entertainment
business, which includes radio, revenue grew $7 million or 1% compared to the
third quarter of 2011, “due primarily to 3% growth in radio revenues, excluding
CCME’s acquired traffic business, largely from increased national advertising,
as well as digital radio services and the iHeartRadio Music Festival.” Those revenue
increases were partially offset by declines in advertising in the traffic
Ad categories with strong growth included
automotive, political, telecommunications and media and publishing. Music
license fees dropped; and the Media and Entertainment business also saved money
on personnel costs as a result of “strategic cost initiatives,” though it spent
more on digital streaming expenses due to increased listenership, costs
associated with the music festival and other expenses.
The company also reported a 2% increase in Americas outdoor
revenues but a decline in its international outdoor business due to the
divestiture of two businesses and the effects of movements in foreign exchange
recent business highlights, CC mentioned the pending purchase of WOR, its first
AM in New York City; renewal of its contract with syndicated personality
Elvis Duran; and launch of “Clear Channel Airport’s ClearVision,” an in-airport
TV network that launched at Raleigh-Durham International Airport.