Clear Channel Communications did not enjoy as much of a recovery in Q2 as some other radio companies. Parent company CC Media Holdings reported that revenues were up 4% to $1.49 billion. The biggest division, Clear Channel Radio, also reported a 4% gain to $748.7 million.
Radio operating income before depreciation and amortization, non-cash compensation expense, and other (OIBDAN) was up 20% though to $312.9 million. OIBDAN for all of CC Media was up 14% to $456.9 million.
“Our second quarter results reflect the positive impact of the global advertising market recovery combined with the ongoing execution of our strategic plan to maximize our performance and improve profitability across our operations,” said CEO Mark Mays, who has announced plans to step down at the end of the year. “During the quarter, we saw improvement in both revenue and profit margins across our radio and outdoor platforms. The fundamentals of our business are clearly improving, as we return to revenue growth and attain the benefits of our cost reduction efforts,” he added in a press release. CC Media, which trades over-the-counter, does not conduct Wall Street conference calls, although its majority-owned Clear Channel Outdoor, which trades on the NYSE, does.
Radio growth was attributed primarily to national business, accounting for $24.2 million of the $31.2 million improvement. The gains came in various ad categories, including retail, food and beverage, telecommunications and automotive. The company said its average rate per minute was up from a year earlier.
For Clear Channel Outdoor, domestic revenues were up 4% to $206.1 million and OIBDAN was nearly flat at $117.7 million. International business was down 2% to $307.5 million, but OIBDAN gained 10% to $70.1 million.
Clear Channel announced that its board of directors has authorized a stock repurchase program for both CC Media Holdings and Clear Channel Outdoor. The buyback plan will cover purchases of up to $100 million collectively of the two Class A stock issues. Purchases may be made in the open market or through negotiated transactions.