CC Media Holdings Reports Results for Q4 and Full Year, 2013
February 20, 2014
Clear Channel Media Holdings today reported its financial results for the fourth quarter and full year ended December 31, 2013. As for the full year, consolidated revenues decreased less than 1 percent to $6.24 billion in 2013 compared to $6.25 billion in 2012. Excluding political advertising, revenue was up 2 percent. CC Media+Entertainment revenues grew by $47 million compared to 2012, driven primarily by stronger national and digital advertising, as well as promotional and event sponsorship with the expansion of the Jingle Ball tour, iHeartRadio Music Festival and album release events, partially offset by the decline in political advertising spend. The company's OIBDAN declined 4 percent to $1.7 billion in 2013 compared to $1.8 billion in 2012 on a reported basis and excluding the effects of movements in foreign exchange rates and divestiture of businesses.
Looking at Q4, consolidated revenues totaled $1.7 billion, which is basically flat from Q4 of 2012. CC Media+Entertainment revenues increased $24 million, or 3 percent (up 8 percent excluding political), due primarily to stronger national and digital advertising, as well as promotional and event sponsorship. The company's OIBDAN in Q4 was down $15 million for the three months ended December 31, 2013, compared to the same period of 2012 on a reported basis. Operating expenses for Media+Entertainment increased as a result of continued investments in the company's national sales and programming capabilities, as well as higher expenses related to events and CC's digital platform.
"With our unmatched reach and unparalleled assets, we outperformed the radio market and capitalized on the growing out-of-the-home consumer trend in 2013," stated Chairman and CEO Bob Pittman. "Clear Channel continued to create new businesses based on the strength of our core assets and to provide customized multi-platform market solutions to advertising partners that nobody else can. At Media+Entertainment, we further expanded our events business – reaching nearly 4 billion social impressions with December's Jingle Ball national tour, following up on September’s iHeartRadio Music Festival's 2.3 billion social impressions. We also partnered with The CW Network to air 7 shows on broadcast TV, reaching over 50 million TV viewers. Our results at Outdoor reflected our sharp focus on rolling out new digital products in the U.S. and internationally, and on taking advantage of fast-growing emerging markets in Latin America and Asia. As America's leading multi-platform media company as measured by reach, we look forward to continuing to serve advertisers and consumers even better in 2014."
"We succeeded this year in delivering a steady financial performance while investing for future growth across the company, despite challenging economic conditions," added President and CFO Rich Bressler. "We hired top-caliber leaders at both Media+Entertainment and Outdoor, while executing on our revenue and efficiency initiatives that are building a strong foundation for our long-term success. Importantly, our capital markets activities over the past months – including extending our maturities and selling non-core assets, like our stake in radio assets in Australia/New Zealand – have given us the financial flexibly to continue to grow our businesses."