CC Media Holdings, Inc. (OTCBB:CCMO) today reported financial results for the fourth quarter and full year ended December 31, 2013.
“With our unmatched reach and unparalleled assets, we outperformed the radio market and capitalized on the growing out-of-the-home consumer trend in 2013,” Chairman and Chief Executive Officer Bob Pittman said. “Clear Channel continued to create new businesses based on the strength of our core assets and to provide customized multi-platform market solutions to advertising partners that nobody else can. At Media+Entertainment, we further expanded our events business – reaching nearly 4 billion social impressions with December’s Jingle Ball national tour, following up on September’s iHeartRadio Music Festival’s 2.3 billion social impressions. We also partnered with The CW Network to air 7 shows on broadcast TV, reaching over 50 million TV viewers. Our results at Outdoor reflected our sharp focus on rolling out new digital products in the U.S. and internationally, and on taking advantage of fast-growing emerging markets in Latin America and Asia. As America’s leading multi-platform media company as measured by reach, we look forward to continuing to serve advertisers and consumers even better in 2014.”
“We succeeded this year in delivering a steady financial performance while investing for future growth across the company, despite challenging economic conditions,” said Rich Bressler, President and Chief Financial Officer. “We hired top-caliber leaders at both Media+Entertainment and Outdoor, while executing on our revenue and efficiency initiatives that are building a strong foundation for our long-term success. Importantly, our capital markets activities over the past months – including extending our maturities and selling non-core assets, like our stake in radio assets in Australia/New Zealand – have given us the financial flexibly to continue to grow our businesses.”
Full Year 2013 Results
Consolidated revenues decreased less than 1% to $6.24 billion for the full year 2013 compared to $6.25 billion in 2012. Excluding political advertising, revenue was up 2%
. Growth at Media+Entertainment and Americas outdoor was offset by declines at International outdoor, as well as our media representation business for which political revenues decreased $40 million compared to 2012, a presidential election year.
- Media+Entertainment revenues grew $47 million, or 2% (up 4%, excluding political 1), compared to 2012, driven primarily by stronger national and digital advertising, as well as promotional and event sponsorship with the expansion of the Jingle Ball tour, iHeartRadio Music Festival and album release events, partially offset by the decline in political advertising spend.
- Americas outdoor revenues rose $11 million, or 1%, on a reported basis compared to 2012. New contracts drove higher occupancy and rates in traditional bulletins and posters, while higher revenues in digital displays were due to higher occupancy and capacity. Partially offsetting the growth of digital was the absence of revenue from the 77 digital boards in Los Angeles that were turned off due to a court ruling.
- International outdoor revenues increased $3 million, or less than 1%, after adjusting for divestitures during the third quarter of 2012 ($20 million revenue reduction) and a $5 million increase from movements in foreign exchange rates. Revenue growth in emerging markets, including China and Brazil, as well as strong performance in the UK, were offset in part by declines in developed markets, some of which faced challenging economic conditions, such as France. On a reported basis, revenues decreased $12 million, or 1%, compared to 2012.
The Company’s OIBDAN
declined 4% to $1.7 billion in 2013 compared to $1.8 billion in 2012 on a reported basis and excluding the effects of movements in foreign exchange rates and divestiture of businesses. Included in the full year 2013 OIBDAN of $1.7 billion were $58 million of operating and corporate expenses related to the Company’s strategic revenue and efficiency initiatives to attract additional advertising dollars to the business and improve operating efficiencies, compared to $76 million of such expenses in 2012. The decrease in OIBDAN was impacted by $25 million of litigation expenses in 2013 compared to $12 million in 2012, as well as a $21 million performance rights royalty credit the Company received in 2012 that did not recur in 2013. OIBDAN for 2012 includes $27 million of legal and other costs in Latin America, which did not recur in 2013.
The Company’s consolidated EBITDA, as defined under its senior secured credit facilities, was $1.9 billion in 2013, down less than 1% from 2012.