Modest Q2 Profits Rise for Clear Channel

27 July 2004

Maintaining its radio operations is proving costly for US media giant Clear Channel Communications.

Not only did it recently receive a record $1.7 million (€1.4m; £920,000) fine for indecent broadcasts, radio is now holding back the strong performance of the rest of the company.

This year's modest second quarter radio revenue rise of 3% contrasts with rises of 9% and 12% for entertainment and outdoor respectively.

Overall revenue of $2.49bn (up by 7.2%) is incorporated into a Q2 net income of $253.8m, a 1% rise, for the company.

With just enough cash flow to buy back some of its own shares, Clear Channel announced it will purchase stock to the value of £1bn on top of the $934m already bought this year. It will also raise the dividend to 50 cents in a bid to stop the decline in share price.

Additionally, it plans to cease issuing estimates of future growth, arguing that these trigger scaremongering and contribute to stock price changes.

Data sourced from: The Wall Street Journal Online; additional content by WARC staff