4Q: Clear Channel's Outdoor Division Passes Radio
For the full year, the radio business was still slightly larger than outdoor. In 2007, the outdoor division's revenues were up 13% to $3.38 billion, while radio was basically flat at $3.49 billion. Total annual revenues rose 6% to $6.81 billion, including a small amount of extraneous income.
The fourth quarter switch-up at Clear Channel reflects broader trends in media spending, where out-of-home is booming, while radio is stagnant or even declining. After coasting during the first two quarters, according to the Radio Advertising Bureau, total radio revenues dropped 5% in the third quarter and roughly 4.3% in the fourth (calculated by averaging 2% in October, 6% in November, and 5% in December).
At the same time, out-of-home maintained 6% revenue growth in the third quarter and probably grew 6% to 7% for the full year 2007. Fourth-quarter results are not yet available for the industry--but it appears to be defying gravity amid signs of a slowing economy.
The fourth-quarter decline in radio revenues at Clear Channel raised concern among Wall Street analysts that weak financial performance could derail the planned sale of the company to private equity. The secular downturn in radio comes at a particularly bad time, accompanied by a worldwide credit crunch that could make borrowing more expensive for Thomas H. Lee Partners and Bain Capital Partners, the companies leading the buyout.
Analysts say the private equity firms, spooked by the weak radio results and low stock price, could still cancel the deal. By the same token, they may feel that the strong performance of the company's Outdoor division offsets the bad news from radio.
It should be noted that Clear Channel Outdoor, with a lot of foreign business, got a big boost from the weak dollar in currency exchanges.
Recent MediaDailyNews Articles
-
Original 'Voice' Judges Return May 17, 5:41 p.m.
The original quartet of coaches for “The Voice” will return for the fifth season this fall. ... -
Van Wagner Partners With CineSport For Online Video May 17, 5:34 p.m.
Van Wagner Communications’ Sports and Entertainment division is joining forces with CineSport, partly owned by Van ... -
'Idol' Falls, 'Bang' Leads Thursdays May 17, 3:38 p.m.
The TV broadcast network environment is definitely shifting -- as evidenced by the last major night ... -
Sapient Revs Up 12%, Optimistic About 2013 May 17, 2:47 p.m.
Marketing services company Sapient reported first-quarter revenues of $292.6 million -- up 12% from the same ... -
KSE Finalizes Outdoor Channel Buy May 17, 11:08 a.m.
An entity controlled by sports entrepreneur Stan Kroenke has finalized its acquisition of the Outdoor Channel ... -
'Tonight' Still King Of Late-Night TV May 17, 10:49 a.m.
While NBC proceeds to set up its late-night changes for next year, "The Tonight Show with ... -
U.S. Open Going Cable-Only, Moves To ESPN May 17, 9:18 a.m.
After decades on the network that saw stars from Ashe to Navratilova to Federer win, the ... -
USA Looks To Make Comedy King In The New Season May 16, 10:22 p.m.
What do you do when you’re the last network putting on the last event of the ... -
Comedy Central Goes Dark To Simulcast New Radio Channel May 16, 6:12 p.m.
For the first time since its tribute to Johnny Carson 20 years ago, Comedy Central will ... -
MGM Doubles Revs, 'Hobbit' Helps May 16, 5:56 p.m.
A big positive swing for MGM Holdings was seen in its first-quarter earning results, thanks to ...
Be the first to comment on "4Q: Clear Channel's Outdoor Division Passes Radio "
Leave a Comment