Latest Financials

31 July 2003

McDonald’s took heart from strong US growth despite a fall in second-quarter profits.

The ailing burger behemoth posted Q2 net income of $470.9 million (€413.9m; £291.4m), down 5.3% year-on-year, though revenues rose 11% to $4.3 billion.

Most encouraging was a 4.9% increase in sales at US McDonald’s-brand outlets open at for least twelve months – the strongest growth for five years. However, global sales rose just 1.2% after falls of 1.8% in Europe and 6.6% in Asia Pacific and the Middle East.

• US media giant Clear Channel shrugged off a 2.1% fall in radio advertising to boost second-quarter profits.

The group’s net income rose from $238m in Q2 last year to $251.3m, on a 7% rise in revenues to $2.32bn. There were revenue gains at both its outdoor ad business (+20%) and its live entertainment unit (+9%), but radio suffered due to poor ad sales in local markets and falling spend from consumer goods and fast food firms.

Clear Channel owns over 1,200 radio stations and controls one-sixth of the medium’s ad market.

• Mexico’s number two broadcaster TV Azteca reported net income of 550m pesos ($52.6m; €46.2m; £32.6m) for the second quarter, much higher than the 47m pesos of Q2 last year.

EBITDA (earnings before interest, tax, depreciation and amortization) climbed 5% to 878m pesos. Sales, however, slipped 4% to 1.8bn pesos as ad revenues for the quarter failed to live up to those twelve months earlier, when they were boosted by the soccer World Cup.

Data sourced from: multiple sources; additional content by WARC staff