CCC’s 2Q Down
Clear Channel Communications announced a decrease in revenue during the second quarter of 2005, down 13 percent from the same period last year. The report was slightly lower than analysts anticipated, and CCC is rethinking a $3-per-share dividend.
Analysts expected a 2Q profit of 41 cents per share on sales of $2.47 billion; CCE reported revenues of $2.46 billion, down 1 percent from $2.49 billion a year ago. Quarterly income was $221 million, down from $254 million during the second quarter of 2004.
CCC President/CEO Mark Mays told analysts in a conference call that the company is rethinking a previously announced plan to pay a special dividend of $3 per share later this year. It may instead use the money to repurchase stock. Any special dividend will likely be pushed back until next year.
Clear Channel has tried to cut radio advertising inventory in an attempt to win back listeners. The company has encouraged advertisers to purchase 30-second ads versus 60-second ads, Mays said. He added that, according to Arbitron numbers, the effort has been successful and radio listeners are returning. Although radio revenue fell nearly 7 percent to $932 billion, the CEO believes the better ad rates will eventually make the conglomerate more profitable.
The company’s billboard division saw a 7 percent upswing to $685 million.
As for the
At press time, CCC was expected to release an informational statement to the Securities and Exchange Commission regarding the spin-off plans.
