Clear Channel 3Q Results
Clear Channel Communications, which is evaluating a possible sale, reported 7 percent higher revenues for the third quarter, but conceded company earnings had dropped 9.5 percent due to higher operating expenses and the spinoff of
Third quarter revenue exceeded Wall Street expectations, coming in at $1.79 billion, from $1.68 billion last year.
Net income fell to $185.9 million for the three months ending September 30th, down from $205.5 million last year. Clear Channel has been buying back stock, improving per-share figures. Analysts expected earnings of 37 cents per share, according to Thomson Financial.
Radio and domestic outdoor divisions proved to be the company’s most profitable sectors, and in a conference call October 30th, company officials forecasted fourth quarter gains for the divisions at 8.8 percent and 9.2 percent respectively, higher figures than many analyst estimates.
Those gains could play into the discussion of a company sale. CCC’s board announced October 25th it had hired Goldman Sachs to evaluate “strategic alternatives to enhance shareholder value.” Some speculation has pointed to divestitures of parts of the company’s radio or outdoor sectors, or even a buyout by the Mays family, which founded the company.
Following the announcement October 30th, shares of CCC’s stock rose to $34.76 on the NYSE. Should the company proceed with the privatization deal, some analysts say company stock could reasonably sell at $37 to $40 per share.