After hearing CC CFO Tom Casey speak at a Wells Fargo event, Wells Fargo analyst Marci Ryvicker said, “Recent debt deals should alleviate capital structure concerns. Clear Channel Communications and Clear Channel Outdoor have done several financial transactions over the past 6 weeks that alleviated the maturity walls of 2014 and should lead to alleviation of the maturity wall in 2016.”
That, she noted, is giving the company the opportunity to continue to evolve “with a tight focus on operations…”
Looking at the very near future, CC noted that political income will fuel radio results for Q4 with pacing at 4%. Outdoor is heading for gains of about 2%.
Clear Channel has not yet monetized its iHeart initiative, but it is said to be building momentum. It claims 10M listeners good for 100M hours of listening, and has excellent synergies with the company’s massive broadcast radio platform. But for now, its value is stored in its potential.
Ryvicker said the company is making investments now that are costing it money but are aimed at increasing margins down the road. It is shooting for 40% on the radio aside and 20% on the TV side.