Clear Channel Outdoor Holdings, Inc.'s CEO Discusses Second Quarter Results- Earnings Call Transcript

Clear Channel Outdoor Holdings, Inc (CCO)

Q2 2012 Earnings Conference Call

August 1, 2012, 04:30 pm ET

Executives

Brian Coleman – Senior Vice President, Treasurer

Tom Casey – CFO, Executive Vice President

Analysts

James Dix

Marci Ryvicker

Avi Steiner

Bishop Cheen

Jason Kim

Lance Vitanza

Aaron Watts

(Jaime Morris)

Doug Arthur

Andrew Finkelstein

Presentation

Operator

Ladies and gentlemen, good afternoon. Thank you for standing by and welcome to the Clear Channel second quarter earnings conference call.

At this time, all lines are in a listen only mode. There will be an opportunity for questions. (Operator Instructions)

At this time, I’d like to turn the conference over to our host, Senior Vice President and Treasurer, Mr. Brian Coleman. Please go ahead.

Brian Coleman

Good afternoon and thank you for joining our earnings call for the second quarter of 2012. On the call with me today is Tom Casey, Executive Vice President and Chief Financial Officer.

During today’s call, we will provide an overview of the second quarter financial and operating performances of CC Media Holdings, Clear Channel Communications, and Clear Channel Outdoor Holdings.

For purposes of this call, when we describe the financial and operating performances of CC Media Holdings, we are also describing the performance of its subsidiary, Clear Channel Communications. After Tom’s comments, we will open up the line for questions.

Before we begin, I would like to remind everyone that this conference call may include forward-looking statements. They involve uncertainties and risks. There can be no assurance that management’s expectations, beliefs, and projections will result or be achieved or that actual results will not differ from expectations.

Please see our annual reports on Form 10-K and our quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission for discussion of important factors that could affect our actual results.

Pacing data may be mentioned during this call. For those not familiar with pacing data, it reflects revenues booked at a specific date versus the comparable date in a prior period, and may or may not reflect the actual revenue growth at the end of the period.

The company’s revenue pacing information includes an adjustment to prior periods to include all acquisitions and exclude all the divestitures in both periods presented for comparative purposes.

It also excludes the effects of movements in foreign exchange rates. During today’s call, we will provide certain performance measures that do not conform to generally accepted accounting principles.

We have provided schedules that reconcile these non-GAAP measures with our reported results on GAAP basis as part of our earnings press release, which can be found on the investor sections of our websites.

A webcast of this call and earnings press releases issued today can be found on the investor sections of our websites at www.clearchannel.com, www.clearchanneloutdoor.com, or www.ccmediaholdings.com. A replay of this conference call will be available for a period of 30 days.

And with that, I will now turn the call over to Tom Casey.

Tom Casey

Thank you Brian, and good afternoon everyone. During the second quarter we continued to make solid progress against our strategy to strengthen our business and improve our competitive position.

As I discussed with you last quarter, our strategic investments in our Media and Entertainment and our Outdoor operations are key to keeping driving our business forward.

Building our size, scale, and operating strength, these investments make it possible for us to take full advantage of our opportunity and continue to generate meaningful growth.

Most of all, we’ve had industry leadership, global diversification, and constant innovation. We need to leverage the quality and reach of our assets across the company, today and into the future.

Earlier this year, Media and Entertainment launched our new strategic partnerships, national sales, and integrated marketing and sales groups. So now we can offer a groundbreaking constant marketing solution that only Clear Channel can deliver. That’s helping us gain real traction with our major national advertisers, a key objective of our strategy.

Our industry-leading digital radio platform, iHeartRadio recently reached 10 million registered users faster than any other internet service, and it has been one of the major beneficiaries of this growing national advertising success.

This September’s iHeartRadio Music Festival is another example of our ability to leverage our assets. The festival is being sponsored by such national brands as Amazon Kindle Fire, Dish, Macy’s, MGM Resorts International, NBC’s The Voice, and State Farm.

Our Outdoor businesses, the American and international, reach hundreds of millions of people every month, and we will continue to compete for significant advertising contracts that attract new target audiences around the world for our clients.

Our investments in our Outdoor business are also continuing to pay off. In the Americas, over the last 12 months, we have deployed more than 250 digital displays. Our digital installations now total 963.

Internationally, we have recently won several key contracts and tenders including two large advertising contracts with public transportation companies in Norway and Sweden. Thanks to our investments, including our robust sales infrastructure, we are well positioned to continue driving our growth in the future.

Clearly, given the economic environment, we’ll still stay focused on keeping our costs under control. We are working to right size our operations in the regions where economies have continued to deteriorate, while investing selectively to capitalize on opportunities where economies continue to see growth.

Over all, we are encouraged with our progress, and I look forward to keeping you posted on it throughout the year.

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