CC Media Holdings, the parent company of Clear Channel Communications, reported that Q3 revenues were up 6% to $1.48 billion The US billboard business was strongest, but radio had a good quarter.
Radio revenues were up 6% to $743 million while operating expenses rose only 1% to $441.7 million. So, operating income before depreciation and amortization, non-cash compensation expense, and other (OIBDAN) gained 13% to $301.3 million.
National advertising was strongest, but Clear Channel reported that local was also up for radio in the quarter. The average rate per minute for radio ad sales also increased.
“Our diversified media platform continued to build on the momentum of the first half of the year. Our radio and outdoor businesses generated healthy gains in revenue and improvement in profit margins, reflecting our leadership positions, expanding digital presence and efficient operating infrastructure. As a result of the concerted investments we have made in our business, management and sales resources, we have emerged as a more focused, profit-driven organization delivering innovative products and measurable results for our advertising partners,” said Mark Mays, President and CEO of CC Media Holdings. He has announced plans to step down from day-to-day operating at the end of next month, but his successor has not yet been announced.
Clear Channel Outdoor posted a 7% revenue improvement for its Americas Outdoor business in Q3 to $333.3 million, with OIBDAN up 17% to $139.8 million. International Outdoor revenues were up 4% to $361.8 million, with OIBDAN shooting up 74% to $62.3 million.