• by Erik Sass  @eriksass1, August 9, 2010

The radio industry seems to be enjoying a tentative recovery, judging by the second-quarter results from Clear Channel Radio, the country's largest broadcast group. Total revenues at Clear Channel Radio increased 4% from $717.6 million in the second quarter of 2009 to $748.7 million in the second quarter of 2010.

At the same time, operating expenses decreased 4.6% from $456.7 million to $435.9 million over the same period.

The positive results at CCR contributed to overall revenue growth for CC Media Holdings of 4%, from $1.44 billion to $1.49 billion. (CC Media Holdings was formed by private-equity buyers Thomas H. Lee Partners and Bain Capital Partners to take Clear Channel private in 2008.)

CCR credited the revenue growth to strengthening national ad demand, especially in the retail, food and beverage, telecommunications, and automotive categories.

Mark Mays, the president and CEO of CC Media Holdings, stated: "The fundamentals of our business are clearly improving, as we return to revenue growth and attain the benefits of our cost reduction efforts."

He also noted the success of "restructuring efforts, including the successful divestiture of non-strategic assets during the past year."

Revenues also increased at Clear Channel Outdoor as a result of growth in its domestic outdoor advertising revenue, up 3% from $315.5 million to $323.8 million. Revenues at Clear Channel Outdoor's international division (which drove total revenue growth in previous quarters, in part due to favorable exchange rates) remained flat in the second quarter of 2010. U.S. ad revenue growth was attributed in part to strong demand for digital out-of-home inventory.