Clear Channel parent company CC Media Holdings has reported its financial results for the first quarter of 2013. Overall revenue fell by approximately one percent to $1.34 billion, compared to $1.36 billion a year ago. Excluding the effects of movements in foreign exchange rates, as well as an $8 million impact from the divestiture of two businesses during Q3 2012, revenues declined $9 million, or less than one percent.
Clear Channel Media+Entertainment saw a two percent decline in revenue, or a $15 million drop, to $656.566 million. The decline was attributed to its traffic division, "which continues to reflect integration activities," as well as Premiere, though its "performance continued to improve over the quarter. Offsetting these declines was strength in the stations, particularly in national and digital revenues." CCM+E operating expenses were down three percent to $443.4 million, while OIBDAN fell one percent to just under $213.2 million.
CC's Outdoor business in America saw a two percent increase in revenue to $286.5 million, while international Outdoor revenue was up by just under one percent.
"The strength of our businesses was clear in the company’s solid first quarter results, which included growing returns from our strategic investments in key digital assets," CEO Bob Pittman said. "Across the company, we are creating unique, engaging solutions for clients that use our unparalleled multi-platform reach. With our advertisers, we are innovating new ways to use our assets to reach consumers more effectively wherever they are – which is increasingly out of their homes. Rather than staying in their connected homes as once predicted, people are now making more mobile connections than ever before. This trend toward the connected consumer plays to the strengths of Clear Channel in broadcast and digital radio and outdoor displays, and we are beginning to make progress in monetizing it."
"Thanks to our operating discipline, we contained costs and kept building momentum in our outdoor and our media and entertainment businesses during the quarter," said EVP/CFO Tom Casey. "We made solid progress in our broadcast, syndication and digital businesses. Our operating leverage in Americas outdoor drove strong results from last year’s investments, while International outdoor delivered double-digit topline growth from emerging markets. Companywide, past strategic investments are positively contributing to this quarter’s results, and we will continue to be proactive about investing in growth areas and refocusing our Outdoor business in Europe. We were also opportunistic in our capital management and successfully completed a private offering due 2021 to help pre-pay all of our 2014 bank debt maturities."