Clear Channel's Profits Miss Targets
Updated from 10:03 a.m. EDT
Clear Channel's (CCU) first-quarter results fell short of Wall Street's estimates, and the company declined to provide an outlook due to the pending buyout deal.
The San Antonio-based radio broadcaster and outdoor advertising company said it had a first-quarter profit of $799.6 million, or $1.61 a share, up from $102.2 million, or 21 cents a share, in the year-ago period. Excluding items, Clear Channel said it had adjusted earnings of $94.2 million, or 19 cents a share, essentially flat from a year ago.
Revenue rose to $1.56 billion, an increase of 4% from a year earlier. Excluding the effects of foreign exchange, revenue was up 1% to $1.51 billion. Analysts expected the company to earn 21 cents a share on revenue of $1.53 billion, according to Thomson Reuters. Clear Channel shares were off 1.5% at $29.40."We continued to execute on our strategic plan during first quarter in the face of a challenging macroeconomic climate," said CEO Mark Mays in a release. "We believe our concerted investment strategy will position our businesses for growth over the long-term." Clear Channel also addressed its pending $19 billion privatization deal, which has been stuck in litigation after the six financing banks tried to wriggle their way out of the agreement. Clear Channel said its shareholders approved the adoption of the merger deal with a group led by private-equity companies Thomas H. Lee Partners and Bain Capital Partners on Sept. 25. At odds over the credit agreement are Citigroup (C), Morgan Stanley (MS), Wachovia (WB), Credit Suisse (CS), Deutsche Bank (DB) and the Royal Bank of Scotland (RBS).
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