Clear Channel Communications, the leading radio station owner in the US, has reported an increase in second quarter profits despite a slight drop in radio advertising revenue.
Revenues in the three months to the end of June climbed by 6.6% year on year to $2.32 billion. Quarterly earnings came to $251.3 million, up from $238.0 million in the same period in 2002.
The company blamed poor local sales and falling income from consumer products and fast food promotion for the 2.1% decline in radio advertising. However, this was more than offset by a 20% rise in revenues at the outdoor division and 9% growth in business at its entertainment operations.
With the war and the difficult advertising conditions of the first half now history, Clear Channel hopes to make further progress in the last six months of 2003.
Mark Mays, President and Chief Operating Officer, commented: “Our second quarter results were driven by operating improvements across many of our divisions. We delivered significant free cash flow and continued to focus on strengthening our balance sheet and investing in our further growth. We are seeking a gradual improvement in the economy and are looking for a stronger second half as the environment improves.”
