That’s better than the overall industry did in Q3 and going forward CEO Mark Mays says CC Media Holdings, the holding company created in the private equity-backed buyout, is “intensely focused on mitigating declines in our businesses.” CC Outdoor’s Q3 revenues declined only 1%. Clear Channel did not provide any information about forward pacings – and indeed has not done so since May – and did not conduct a conference call with analysts.
Radio revenues decline 7% to $843.9 million and Operating Income Before Depreciation, Amortization and Non-cash compensation (OIBDAN) fell 12% to $327.6 million. Both local and national revenues were down for the quarter, with automotive, retail and entertainment cited as soft categories.
Outdoor advertising revenues declined 1% to $813.4 million and OIBDAN was down 17% to $210.9 million.
“Other,” which includes Katz Media Group, saw revenues decline 3% to $53.7 million and OIBDAN was down61% to $4.5 million.
“The unprecedented macroeconomic challenges introduced in the third quarter impacted some of our largest advertiser groups almost immediately. As a result, we now share the issues affecting virtually every U.S. business sector. In this context, we think it’s significant to note that our third quarter performance compared favorably to our peers. While Outdoor fared better than Radio last quarter, our top line results reflect softening demand and other dynamics of our business are under pressure. Even as we continue to benefit from our globally diversified footprint, it is more important than ever to manage our expenses tightly. Moving forward, we are intensely focused on mitigating declines in our businesses. We will invest in those areas that are crucial to our future and continue to take stringent measures to lower costs while exerting strict discipline on our capital spending during this difficult period,” said CEO Mark Mays in the company release announcing the quarterly results.
Over all, CC Media Holdings saw Q3 revenues decline 4% to $1.68 billion and OIBDAN was off 16% to $496.5 million.
RBR/TVBR observation: Clear Channel Radio appears to be performing a bit better than the overall industry in this severe ad slump. The previously robust outdoor business has also encountered a slowdown, although some others have been hit harder than Clear Channel Outdoor. The most reassuring thing for CC Media Holdings management is that it won the battle and got its bank debt closed at terms which are certainly not available today.