SAN ANTONIO – The parent company of Clear Channel Communications Inc. today said it suffered a loss in the first quarter as its revenue declined by double digits.
CC Media Holdings Inc. (OTCBB: CCMO) posted a first-quarter loss of $418.22 million, compared with a profit of $799.65 million in the same period a year ago, before the leveraged buyout took place. The loss included $33.6 million in restructuring charges.
“Our companies performed well on a relative basis in a difficult economic environment and weakened ad market,” Mark P. Mays, CC Media Holdings’ CEO, said in a statement. “We commend our employees for their ongoing efforts to engage their audiences, customers and communities through our strong brands, high-impact mediums, and great portfolio of properties.”
CC Media Holdings was created last July by two private equity firms to purchase Clear Channel, in a deal that saddled the new company with $15.7 billion in debt.
Clear Channel Communications’ sister company Clear Channel Outdoor Holdings Inc. (NYSE:CCO), which sells billboard advertising and is majority-owned by CC Media Holdings, also posted a first-quarter loss of $87.9 million today, compared with a year-ago profit of $88.9 million.
Clear Channel is the largest U.S. radio broadcaster. It owns and operates more than 800 radio stations nationwide, including local broadcasters WHJJ-AM (920), WSNE-FM (93.3), WHJY-FM (94.1), and WWBB-FM (101.5).
In April, Clear Channel said its preliminary first-quarter revenue was down by 23 percent to $1.21 billion, compared with $1.56 billion in the first three months of 2008. The radio division’s revenue dropped 22 percent.
Clear Channel also announced last month that it was laying off 590 employees at its radio stations, just three months after the company eliminated 1,850 positions companywide, Bloomberg News reported. A spokeswoman said the company has shrunk its work force 12 percent so far this year.
Clear Channel lost a total of $4 billion last year.
Additional information is available at ClearChannel.com.
