CCM+E Reports 1Q Radio Revenue Down 1%

Bob Pittman

CC Media Holdings, Inc. Thursday reported financial results for the first quarter ended March 31, 2013.

"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," Chief Executive Officer 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."

Tom Casey

"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 Tom Casey, Executive Vice President and Chief Financial Officer.

"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."

• Consolidated revenues decreased $18 million, or 1%, year over year, to $1.34 billion in the first quarter of 2013 compared to $1.36 billion in the same period of 2012. Excluding the effects of movements in foreign exchange rates(1) , as well as an $8 million impact from the divestiture of two businesses during the third quarter of 2012, revenues declined $9 million, or less than 1%.
• Media and Entertainment ("CCM+E") revenues decreased $15 million, or 2%, driven primarily by the traffic business, which continues to reflect  integration activities. Offsetting this decline was strength in radio stations, including national and digital operations.
• Americas outdoor revenues rose $6 million, or 2%, on a reported basis and adjusted for movements in foreign exchange rates, driven by higher occupancy and capacity on digital displays, strong growth in posters on new advertisers, and growth in airports.
• International outdoor revenues increased $2 million, or less than 1%, after adjusting for an $8 million revenue reduction due to the divestiture of two businesses during the third quarter of 2012 and a $1 million decrease from movements in foreign exchange rates. More robust economic conditions in emerging markets and certain other geographies were offset by weakened economic conditions in other markets, particularly Western Europe. On a reported basis, revenues decreased $7 million, or 2%, compared to the first three months of 2012.