CC Media Holdings, Inc. Reports Results for Second Quarter 2012

 

 

San Antonio, Texas August 1, 2012 - CC Media Holdings, Inc. (OTCBB: CCMO) today reported financial results for the second quarter ended June 30, 2012.

"By leveraging industry-leading size, scale and our new multi-platform solutions, we achieved solid growth in the quarter with major national advertisers," Chief Executive Officer Bob Pittman said. "To further drive this success, we continue to invest strategically in our assets, especially digital at both Media & Entertainment and Outdoor, while offering custom marketing solutions that can only be delivered by Clear Channel. In addition, iHeartRadio, our industry-leading digital radio platform, reached 10 million registered users this past May - a milestone achieved in a record eight months, faster than any other major Internet service."

"Even with the economic recovery slowing, we were well positioned to keep driving revenue growth in the quarter at our Media & Entertainment and Outdoor businesses," Tom Casey, Executive Vice President and Chief Financial Officer, said. "For the rest of 2012, we will continue to stay focused on controlling our costs, while building our sales infrastructure and strengthening our operations to drive future growth."

CC Media Holdings' revenue totaled $1.60 billion in the second quarter of 2012 and the same period of 2011. Excluding the effects of movements in foreign exchange rates,(1) revenues rose $36 million, or 2%.Media and Entertainment ("CCME") revenues grew $21 million, or 3%, compared to the second quarter of 2011, due primarily to higher revenues from both national and local advertising as well as digital radio services.Americas outdoor revenues rose $2 million, or 1%, compared to the same quarter of 2011, driven primarily by revenue growth from bulletins due to the continued deployment of digital displays and increased airport revenues on higher rates.International outdoor revenues increased $7 million, or 1%, compared to the second quarter of 2011, excluding the effects of movements in foreign exchange rates. Growth resulted mainly from higher street furniture revenues, particularly in China, Australia and the UK, as well as increased billboard revenues in Switzerland. On a reported basis, revenues declined $30 million, or 6%, due to unfavorable movements in foreign exchange rates.

 

The Company's OIBDAN(1) increased 6% to $532 million in the second quarter of 2012 compared to $503 million in the same quarter of 2011. OIBDAN totaled $536 million and grew $33 million, or 7%, excluding the effects of movements in foreign exchange rates. OIBDAN for the second quarter of 2012 included a decrease in music license fee expenses at CCME due to lower royalty rates and a credit for a portion of prior years' fees. During the 2012 quarter, the Company also incurred charges related to certain strategic revenue and cost initiatives to improve operations and continue to invest in the Company's long-term profitability.

The Company's consolidated net loss declined to $28 million in the second quarter of 2012 compared to a consolidated net loss of $38 million for the same period of 2011.

Key Highlights
The Company's key highlights include: Reaching an agreement to have The CW broadcast television network exclusively air September's iHeartRadio Music Festival, which sold out in under 10 minutes for the second consecutive year; making Yahoo! the festival's exclusive live Web and mobile destination as part of a recent comprehensive content distribution and cross-promotion agreement; and attracting key major national advertisers as festival sponsors, including Amazon Kindle Fire, DISH, Macy's, MGM Resorts International, NBC's "The Voice" and State Farm(R);Attaining nearly 95 million downloads and upgrades of the iHeartRadio app, and totaling just under 112 million total listening hours in June, up 131% year over year;Installing 49 new digital billboards for a total of 963 across 37 U.S. markets;Winning one of the largest advertising contracts in Norwegian history to manage all of the advertising across public transportation in the cities of Oslo and Akershus on behalf of Sporveis-Annonsene AS, one of Norway's public transport companies;Renewing one of the largest out-of-home advertising contracts in Sweden with SL, Stockholm's public transportation company; andAnnouncing Clear Channel Airports' multi-year advertising contract extension with the Denver International Airport, creating one of the largest digital footprints of any North American airport; as well as, launching Clear Channel Airports' new enhanced version of its flySMART mobile app to better serve airline passengers.

 

Since the end of the quarter, the Company named Rick Song (formerly General Manager at Microsoft Advertising) as Executive Vice President of Digital Sales at Clear Channel Media & Entertainment, reporting to Tim Castelli, President of National Sales, Marketing and Partnerships, and overseeing digital sales initiatives working closely with the Company's national divisions including Strategic Partnerships, National Programming Platforms and National Advertising Platforms, as well as iHeartRadio and local markets.