CC Media Holdings, the parent company of Clear Channel Communications, reported that 2010 revenues were up 6% to $5.87 billion, with radio revenues up 6% for the year. But Q4 was stronger, with radio revenues up 10%. The company also announced plans to $750 million of new bonds in a private placement.
For Q4, radio revenues rose 10% to $783.1 million. That resulted in a jump in operating income before depreciation and amortization, non-cash compensation expense, and other (OIBDAN) of 21% to $295.6 million. For the full year, radio revenues rose 6% to $2.9 billion, while OIBDAN gained 21% to $1.1 billion.
In his conference call with Wall Street analysts, CEO Mark Mays reported that radio is pacing up 4% in Q1.
The US business of Clear Channel Outdoor saw Q4 revenues rise 7% to $362 million, while OBIDAN gained 21% to $145.1 million. Full year revenues gained 4% to $1.29 billion and OIBDAN rose 13% to $491.9 million.
International outdoor had revenues grown 2% in Q4 to $430.7 million and OIBDAN was up 82% to $99.1 million. Full year revenues were up 3% to $1.51 billion and OIBDAN gained 62% to $263.5 million.
Radio growth was led by national advertising in 2010, although local was also up. The company said average rates per minute improved over 2009.
Clear Channel Communications announced plans for a private placement of $750 million of priority guarantee notes due 2012. The proceeds will be used along with cash on hand to repay $500 million of debt outstanding under its unsecured credit facilities and to repay at maturity $250 million of 6.25% senior notes coming due this year.
The company said it is also seeking amendments to its credit facilities to allow for greater flexibility. The proposed amendments would allow Clear Channel to incur new debt, provided that the proceeds are used to pay down current debt. The effectiveness of the amendments is conditioned on successful repayment of the $500 million proposed from the offering of new notes.