Revenue Up, Profit Down at Clear Channel

Industry biggie Clear Channel said revenue was up 7% in the second quarter of its fiscal year. But with costs also up, the company reported a smaller profit.
Clear Channel Communications took in $1.9 billion in the quarter. Radio revenue grew 6% and outdoor grew 9%. However, income before discontinued operations decreased 7% to $197.5 million.
CEO Mark Mays said the company has “operating momentum” that is continuing in the third quarter. “Our radio division’s performance surpassed our expectations and once again far outpaced the industry. Our top-25 radio markets performed particularly well, generating the highest percentage growth of any of our markets.”
Radio broadcasting alone brought in $983.5 million to the company in the last three months. The company reported increases in both local and national sales, “driven by increases in yield and average unit rates.” It said the number of 30- and 15-second commercials aired as a percent of total minutes sold increased.
Its strongest ad sectors were services, automotive and retail.