At Clear Channel, Radio Revenue Off 4.3% Compared to Last Year’s Q3

Mark Mays says ratings successes and efforts in developing a market for shorter radio spots are helping his company financially.
Releasing third-quarter financials, the Clear Channel CEO stated, “For the second consecutive quarter Clear Channel Radio experienced sequential financial improvement over the previous quarter.”
However, that third quarter radio revenue was $919.2 million, which was off 4.3% from the same period a year ago, while radio operating expenses ticked up 1.6%.
Addressing the drop in revenue, the company wrote: “The decline includes a reduction of approximately $4.3 million from non-cash trade revenues. Both local and national revenues were down for the quarter as well, primarily from the reduction in commercial minutes made available for sale on the company’s radio stations.
“As a result,” it continued in the financial report, “some of the company’s larger advertising categories declined during the quarter, including automotive and retail. Yield, or revenue divided by total minutes of available inventory, experienced an increase each month of the third quarter. The company’s 30- and 15-second commercials as a percent of total commercial minutes available was higher in the third quarter than in the first six months of the year. Average unit rates were also higher during the third quarter than during the first six months of the year.”
Overall, Clear Channel Communications, the parent company, said it had revenues of $2.7 billion in the quarter, up 1% from the period last year. Net income and diluted earnings per share were off from last year’s figures.