IE 11 is not supported. For an optimal experience visit our site on another browser.

Clear Channel posts small quarterly profit

/ Source: The Associated Press

Clear Channel Communications Inc. said its second-quarter profit rose 1 percent from a year ago but radio revenue continued to lag increases in other parts of the media company's business.

The nation's largest radio station operator said Friday that it earned $254 million, or 41 cents per share, in the April-June period. That was up slightly from $251 million, or 41 cents per share, a year earlier, when results were helped by a gain of 4 cents per share from early retirement of debt.

The second-quarter results matched the forecast of analysts, according to a survey by Thomson First Call.

San Antonio-based Clear Channel said revenue rose 7 percent, to $2.46 billion from $2.32 billion a year ago.

The company's largest unit, radio, was also the most anemic, with a 3 percent gain in revenue. Outdoor advertising revenue jumped 12 percent and concert business rose 9 percent.

Mark Mays, president and acting chief executive, said the company generated enough cash flow to buy back more company stock. Earlier this week, Clear Channel announced it would raise the dividend and buy back $1 billion in its own shares.

Also this week, Clear Channel said it would reduce commercials to make radio a better value for listeners and advertisers _ presumably by making ad time more scarce. The company gave few details other than to say the changes will take effect Jan. 1.

Clear Channel has been under fire for sexually explicit on-air remarks by its radio personalities. In June, the company agreed to a record $1.75 million settlement to settle indecency complaints against Howard Stern and other performers. Clear Channel later barred the Stern show from its stations.

Stern and Infinity Broadcasting sued Clear Channel after the San Antonio-based company dropped his show in six cities. Clear Channel said this week that it would file a countersuit, charging Stern with breach of contract.