Friday, August 2, 2013

CC Media, Clear Channel Swing to 2Q Profits

CC Media Holdings Inc. (CCMO) swung to a 2Q profit as it recorded a gain related to the sale of an investment in Sirius XM Radio Inc., while sister company Clear Channel Outdoor Holdings Inc. (CCO) also posted a profit as interest expense fell.

The two companies had been bogged down by interest payments and restructuring costs in previous periods, though advertising demand has improved.

CC Media Chairman and Chief Executive Bob Pittman noted the company has continued to improve its balance sheet with debt transactions and enhanced its liquidity through operational improvements and the sale of noncore assets.

CC 2Q Conference Call Transcript: Click Here.

CC Media, the vehicle used by private-equity firms Bain Capital LLC and Thomas H. Lee Partners LP to privatize Clear Channel Communications in 2008, reported a profit of $7.2 million compared with a year-earlier loss of $39 million. The latest period included a $130.9 million gain on marketable securities related to the sale of an investment in Sirius XM.

Revenue increased 1% to $1.62 billion. Revenue from media and entertainment, the company's largest segment, increased 2%. Interest expense increased 5.6%.

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