After gaining 3% in Q1, Clear Channel Communications CFO Tom Casey told Wall Street analysts Friday that radio revenues are pacing up 2% in Q2. In his view, radio revenues are recovering in line with the US Gross Domestic Product (GDP).
“We’ve now generated growth in our revenues and margins for five consecutive quarters,” Casey noted in reporting the Q1 results, with Clear Channel Outdoor revenues up 7% and radio up 3%, pushing total company revenues up 5% to $1.32 billion.
Casey credited the Q1 radio gain to local, digital and traffic gains. Incidentally, Clear Channel is now dramatically increasing its traffic business with its pending deal to acquire Metro Networks from Westwood One for $120 million. In the Q&A session with analysts, Casey confirmed that local is continuing to outperform national, while national had led the early recovery last year.
“We feel good about our business and feel that we can benefit in line with the recovery of the economy,” Casey said in summing up where CC Radio is heading.
RBR-TVBR observation: There was no mention of the ongoing search for a new CEO to succeed Mark Mays, but Clear Channel is so far moving ahead with the temporary Office of the Chief Executive Officer consisting of CFO Tom Casey and General Counsel Robert Walls Jr. That’s obviously not a long-term solution, but it appears the board of directors is being very picky about finding just the right CEO to fit the company.
