Clear Channel (CCU) first-quarter profit soars but misses estimates
Posted by: in Latest NewsFiled under: Earnings reports, Deals, Marketing and advertising, Clear Channel Commun (CCU), Economic data
Shares of radio broadcaster Clear Channel Communications Inc. (NYSE: CCU) were slightly up in early trading after the company posted higher first-quarter profit boosted in part by gains in its outdoor advertising unit. Though, the company was not able to beat analysts’ predictions as the weak economy put pressure on the overall advertising market.
Clear Channel Communications announced that its quarterly profit surged to $799.7 million, or $1.61 per share. The income figures were definitely something to cheer about. During its first quarter last year, the company had net income of $102.2 million or 21 cents per share. Excluding one-time items, earnings for the quarter would have been $0.19 per share. Analysts’ forecast (which typically exclude one-time items) was for $0.21 per share, according to Thomson Reuters.
The media and advertising display company also said that quarterly revenue rose 3.9% to $1.56 billion, compared with $1.51 billion reported in the same period a year ago, helped by favorable foreign exchange rates; excluding the effect of the week dollar, revenue rose only 1%. Analysts had been anticipating to see slower sales of $1.53 billion.
Clear Channel is currently in the process of trying to go private. The company’s shareholders approved a merger agreement with a group led by Thomas H. Lee Partners and Bain Capital Partners. But the deal fell into litigation this year when the companies sued their bankers who wanted to pull out of their financing commitment. In the light of those troubles, it looks like for the moment the radio broadcaster is unable to estimate a closing date and isn’t even certain that a closing will happen.
Eliza Popescu is a financial writer for the on the web investment advisory service Investor’s Observer.
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