US media giant Clear Channel Communications, owner of 1,200 radio stations, has reported a third quarter collapse in profits to the tune of 59%.
The company has seen its radio income fall to $960.1 million (€753m, £523m), a drop of more than $63m over the same period last year.
The sluggishness of the radio advertising market is partly blamed on the sheer volume of commercials. Clear Channel is trying to reverse the trend by cutting the number and length of ads and charging higher margins. It is also seeking to strengthen its Spanish language business [WAMN: 16-Sept-2004].
Chief executive Mark Mays remains upbeat and expects radio revenues to rise next year.
Outdoor advertising was the company's best performer during the period, with revenue growing $60.1m to $600.2m
Despite terrorism-prompted travel fears, airport advertising has been strong in the US, while advertising on street furniture has been boosted overseas.
Data sourced from Wall Street Journal Online; additional content by WARC staff