HITS Daily Double
"We are seeing a gradual improve-
ment in the economy and are looking for a stronger second half as the environment improves."
——Mark Mays


Money Continues to Pour in Despite Slight Dip in Radio. Hey—Don't Call That Poor DJ a Dip!
Clear Channel Communications today reported revenue of $2.32 billion for its second quarter ended June 30, 2003. That number marks a 6.6% increase over 2002’s $2.17 Q2 revenue figure.

Gather the plastic lawn furniture ‘round the barbecue pit. It’s time to celebrate.

Indeed, the Mays family’s pride and joy yielded net earnings of $251.3 million or 41 cents per share for the period, compared to $238 million or 39 cents per share a year earlier. EBITDA increased 1% over the year-earlier period to $632.9 million.

In radio, revenue dropped 2.1% for the quarter, to $970.6 million, as compared to Q2 2002. The company attributes the decline to weakness in local spot sales, small market revenues, national syndication business and non-traditional revenue—which includes the loss of revenue resulting from Clear Channel’s termination of its deals with independent promoters.

In billboards, revenue increased a whopping 20% to $569 million, thanks to acquisitions. The devaluation of the dollar relative to CC’s “international functional currencies” also helped the boost by contributing about $49.5 million to revenue.

Live entertainment arm Clear Channel Entertainment, meanwhile, saw its revenue climb 9% to $675.9 million, with a near-equal increase in operating expenses. Here, the devaluation of the dollar relative to those dang “international functional currencies” contributed $31.2 million to revenue and $28.1 million to expenses. We’d say to go figure, but they already have.

Increases in revenue from merch, sponsorships, boxes, season tickets, theater touring and other events were “slightly offset” by a decline in ticket sales during the quarter.

Said CC Chairman Lowry Mays, “Our second quarter results reflect our ability to execute our business strategy in a challenging economic environment. We believe that we are very well positioned for future growth.”

Said Preident/COO Mark Mays, “Our second quarter results were driven by operating improvements across many of our divisions. We delivered significant free cash flow and continued to focus on strengthening our balance sheet and investing in our future growth. We are seeing a gradual improvement in the economy and are looking for a stronger second half as the environment improves.”

The foregoing sleep aid brought to you by Clear Channel.