Clear Channel Communications saw turnover rise in the third quarter of 2003 but the flat performance of the radio division shows that this sector remains slow.
Total revenues at the US media corporation rose by 9% to $2.54 billion with net profits coming in at $636.0 million, up from $212.5 million in 2002. The gain in earnings was largely attributable to the sale of shares in Univision, a Spanish language media company.
Radio accounted a significant portion of income but gains in national advertising came at the expense of local markets. Turnover was practically unchanged at $963.6 billion.
US radio advertising revenues were flat in August and analysts have been forced to cut growth forecasts for 2003 (see US Radio Advertising Update And Forecast). It is hoped that improving economic conditions will help to stimulate local advertising in the new year.
Mark Mays, President and Chief Operating Officer at Clear Channel, commented: “Our third quarter results demonstrate our ability to generate significant free cash flow on a consistent basis. Looking ahead, we expect 2004 to be an especially promising year as we expect the full growth potential of Clear Channel will be realised in an improving economic environment.”
Clear Channel is the largest radio station operator in the US with around 1200 stations across the country and also has interests in outdoor advertising and live entertainment.
