CC Media Holdings, Inc. (OTCBB:CCMO) today reported financial results for the first quarter ended March 31, 2014.
“We continued to make progress this quarter in advancing our strategy of providing customized, multi-platform market solutions that nobody else can,” Chairman and Chief Executive Officer Bob Pittman said. “In keeping with our promise to be everywhere our listeners want to find us, our Media+Entertainment business continued to build strong partnerships – making iHeartRadio available on Amazon Fire TV, Apple’s Car Play and the Samsung Gear 2 smartwatch. Our growing events business, which is extending the iHeartRadio brand across an increasing number of media platforms, successfully staged the first-ever iHeartRadio Country Music Festival in Austin. Another newcomer to our events line-up, the iHeartRadio Music Awards, will be televised live from Los Angeles on NBC on May 1. At Outdoor, we launched ‘Connect,’ the first global out-of-home mobile interactive advertising platform that enables customers to access interactive content via their smartphones. We are also enhancing our Americas Outdoor national sales capabilities and optimizing our global digital footprint.”
“Despite a difficult advertising environment due to disruptive winter weather across the U.S., we maintained our level of consolidated revenues, and also continued to invest in our businesses, to reinforce our foundation for growth,” said Rich Bressler, President and Chief Financial Officer. “At Media + Entertainment we flattened our management structure in order to move us closer to the business and make it run more efficiently, better serving our listeners and advertising partners, while staying focused on managing our expenses at both Americas and International Outdoor.
First Quarter 2014 Results
Consolidated revenues were essentially flat in the first quarter of 2014 compared to the same period of 2013. Excluding the effects of movements in foreign exchange rates, revenues declined $1.0 million or less than 1%.
- Media+Entertainment revenues grew $14 million, or 2%, primarily reflecting increases at our traffic and weather business, as well as stronger national and digital advertising.
- Americas outdoor revenues decreased $18 million, or 6%, driven mainly by the absence of revenue from the 77 digital bulletins in Los Angeles that were turned off due to a court ruling, and lower revenues at airports due to contracts that were not renewed. Partially offsetting these declines was higher capacity and occupancy of digital bulletins in other markets.
- International outdoor revenues rose $3 million, or 1%. Revenue growth in emerging markets including China, as well as developed markets including the UK and France, was partly offset by declines in other countries, including those in Northern and Eastern Europe, primarily due to challenging macroeconomic conditions.
The Company’s OIBDAN
was down 2%, or $6 million, to $261 million for the three months ended March 31, 2014, versus $267 million for the same period of 2013. Included in the 2014 first quarter OIBDAN of $261 million were $3 million and $10 million of operating and corporate expenses, respectively, associated with the Company’s strategic revenue and efficiency initiatives to attract additional advertising dollars to its businesses and improve operating efficiencies. OIBDAN for the three months ended March 31, 2013 included $8 million and $1 million of such expenses, respectively.
The consolidated net loss attributable to the Company was $424 million in the first quarter of 2014 compared to a consolidated net loss attributable to the Company of $203 million in the same period of 2013. The increase was primarily attributable to non-cash deferred income taxes, as well as higher interest expense, and equity in losses of non-consolidated affiliates.