EMMS - Get Report) and Cox Radio also advanced. Viacom ( VIAB), which operates the Infinity radio chain and CBS TV network, rose as well, climbing 85 cents, or 2%, to $39.15. Clear Channel's reaffirmation, which came at a Goldman Sachs communications conference, serves as a counterweight to
Viacom's warning last week that it wouldn't meet full-year expectations because the local advertising market wasn't recovering as quickly as expected. The owner of nearly 1,200 radio stations says, as it did in July, that it expects earnings before interest, taxes, depreciation and amortization -- a common bottom-line yardstick -- to show mid- to high-single-digit year-over-year percentage growth in the third quarter of 2003, on both a reported and pro forma basis. Clear Channel's stock, bouncing off Monday's recent low of $36.36, is back near where it was trading before Viacom's preannouncement last week. Local advertising accounts for a vast majority of radio station revenue. In 2002, 78% of radio industry ad revenue came from local advertisers such as car dealers, according to the Radio Advertising Bureau trade group. In last week's announcement, Viacom cut full-year forecasts for revenue, operating income and net income before the cumulative effect of a change in accounting principles.