• by Erik Sass , November 9, 2010

More good news for the radio business, which seems to be enjoying a tentative recovery as 2010 progresses: CC Media Holdings, which owns Clear Channel Radio and Clear Channel Outdoor, said total revenues increased 6% from $1.39 billion in the third quarter of 2009 to $1.47 billion in the third quarter of 2010.

Total operating income soared 25% from $353.6 million to $443.1 million.

These strong results were due to growth in both sectors. Clear Channel Radio's total revenues increased 6% from $703.2 million to $743 million, buoyed by increases in local and national ad revenues across categories including automotive, political, financial services and health care.

Its domestic outdoor business saw revenues increase 7% to $333.3 million, as revenues grew 4% at its international outdoor business to $361.8 million. For the first nine months of 2010, total revenues have increased 5% to $4.2 billion.

In addition to slow improvement in the broader economy, the third-quarter results partly reflect the stringent cost-cutting measures implemented by Clear Channel over the last few years, including several waves of downsizing. From January-May of 2009, 2,810 employees were laid off, representing about 12% of the workforce; the company currently employs just over 20,000 people.

Clear Channel also cut costs with the sale of several hundred smaller and mid-sized radio stations beginning in 2007. The company currently operates about 850 radio stations around the U.S., down from about 1,200 stations in 2006.