The first quarterly report by CC Media Holdings, the new parent company of Clear Channel Communications, shows revenues for Q2 up 2% to $1.83 billion. The improvement is entirely due to a 9% gain by CC Outdoor to $891.5 million, countering a 6% drop at CC Radio to $914.8 million.
“We reported higher revenue and earnings per share for the second quarter and continued to outperform many in the media arena. Strong relative performance in both Outdoor and Radio are a testament to the wisdom of continuing to do what we do best. We exert strict cost discipline and invest in the growth drivers of our core businesses. As we enter the second half of the year with our merger closed, we are hopeful that our streamlined operations coupled with a concentration on growth and execution will enable us to continue to perform well, despite a difficult economic environment.,” said CC Media Holdings CEO Mark Mays. The company did not conduct a conference call with analysts.
In radio, the company said decreases in both local and national ad revenues were partially offset by increases in traffic an online revenues. CC Radio said it experienced revenue declines across all different sizes of markets and across many advertising categories, including automotive, retail and consumer services.
“During the second quarter of 2008, the Company’s total prime minutes sold and its prime average minute rate decreased compared to the second quarter of 2007. The average minute rate for the 60 second spots declined more than the average minute rate of the shorter duration spots during this period,” CC Radio reported.
Q2 operating expenses for CC Radio declined about $17.3 million, due primarily to reduced advertising and promotional expenses and a decline in commission expenses associated with the ad sales decline.
Operating income before depreciation, amortization and non-cash compensation (OIBDAN) was $364.7 million, down 10% from a year ago. For CC Outdoor, OIBDAN was flat at $277 million.