SAN ANTONIO – Media and entertainment company Clear Channel Communications Inc. (NYSE: CCU), the parent of WHJY-FM, WHJJ-FM, WSNE-FM and WHJJ-AM, today announced a 5.1-percent increase in third-quarter profit to $279.74 million. Earnings per diluted share increased to 56 cents from the year-ago 38 cents.
Excluding “discontinued” operations – which the company said include radio stations under contract but not yet sold – net income increased 5.1 percent to $256.31 million.
Third-quarter total revenue grew to $1.73 billion, a 5.3-percent increase from the 2006 period. Excluding a $32.4 million benefit from changes in foreign exchange rates, revenue growth would have been 3.3 percent.
Third-quarter operating income in the outdoor advertising division grew by 31.2 percent to $152.05 million. The radio broadcasting division’s operating income shrank 1.7 percent to $332.87 million as the company continued to shed stations.
“Our third-quarter revenue and OIBDAN growth [OIBDAN, or “operating income before depreciation and amortization, net,” is a company measure excluding discontinued operations, income tax expense or benefit, non-cash compensation expense, and gain on disposition of assets] was fueled by another exceptional performance from our outdoor advertising business, which continues to post consistent growth on a global basis,” said CEO Mark P. Mays. “Once again, our radio management team delivered results that outperformed the rest of the industry.
“Going forward, we remain committed to strengthening the value proposition we deliver to our audiences and advertisers as we continue to prudently invest in our brands, our content and our multi-channel distribution,” Mays said.
On Sept. 25, shareholders approved the adoption of the company’s amended merger agreement with an investors’ group led by Thomas H. Lee Partners LP and Bain Capital Partners LLC. The deal gave Clear Channel shareholders the option of receiving a cash payment of $39.20 per share or, if they preferred, exchanging their Clear Channel shares for an equal number of Class A shares in the new company; they also are promised a per-share consideration if the transaction closes later than Dec. 31.
The agreement is still subject to regulatory approvals and other customary closing conditions. The parties are working to complete the transaction by year’s end, but said it was possible the closing might be delayed until early 2008.
A separate agreement by Clear Channel to sell its television group, signed April 20, is still subject to regulatory approvals and other conditions. That transaction is not contingent on the merger described above.
Meanwhile, the company continues to pursue its previously announced plan to sell 448 radio stations. Clear Channel said it plans to use its capital-loss carry forward to offset the related capital gain on those transactions.
San Antonio-based Clear Channel Communications Inc. (NYSE: CCU) is a global media and entertainment company whose properties include local radio stations WHJY-FM, WHJJ-FM, WSNE-FM and WHJJ-AM. Additional information is available at www.clearchannel.com.
