Clear Channel Parent Second-Quarter Operating Profit Drops
The radio giant, led by CEO Bob Pittman, saw its media and entertainment revenue and total revenue rise slightly.
CC Media Holdings, the parent company of radio giant Clear Channel Communications, on Wednesday reported slightly higher second-quarter revenue, but a lower operating profit.
The company’s revenue rose 1 percent to $1.63 billion. Media and entertainment revenue also increased slightly as higher weather and traffic results and improved digital and political advertising offset lower radio revenue.
CC Media's loss of $186.6 million was down from a year-ago profit of $7.2 million amid higher expenses, including higher sports programming costs, and a loss on the extinguishment of debt.
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Operating income before depreciation, amortization and non-cash compensation expense, a metric that focuses mainly on the results from operations, was down 4 percent to $487 million.
"Our growing digital and events businesses continued their strong momentum during the quarter, further demonstrating the unique value that Clear Channel delivers to advertisers through our diverse set of media assets,” said chairman and CEO Bob Pittman. "At iHeartRadio, we introduced an even more personalized listener experience with the release of iHeartRadio 5.0 and grew our registered users by 50 percent year over year — surpassing the milestone of 50 million registered users in record time."
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He added: "The first-ever iHeartRadio Music Awards, broadcast live on NBC, was a huge success — attracting more than 65 million votes through Twitter and Facebook, with #iHeartAwards trending number 1 on Twitter throughout the night."
Said president and CFO Rich Bressler: "We continued to reinforce our foundation for growth this quarter and make progress in advancing our strategy to become one of the leading technology-fueled multi-platform media and entertainment companies in America."