| 93 billion, up from $8 posted nearly flat profits in the fourth quarter Tuesday, falling short of Wall Street expectations due to weak demand for advertising on local stations The Thomson First Call analysts were already expecting a 22 percent increase "
President and chief operating officer Mark Mays, the CEO's son, said radio advertising is improving month by month , said in an interview that company officials failed to give enough details to convince investors that radio is really coming out of a slump
Radio revenue, which accounts for more than 40 percent of Clear Channel's total, fell 1 percent in the fourth quarter and for all of 2003
Peter Mirsky, an analyst with Oppenheimer & Co
Lowry Mays saying the company had posted record annual revenue and net earnings despite "a very challenging year
Clear Channel predicted that it would increase earnings per share for 2004 by mid- to high-teens, but that fell short again of Wall Street's outlook The stock was down 92 cents to close at $42
Revenue from entertainment, about 30 percent of the company's total, rose 6 percent on the back of tours by the Rolling Stones, Bruce Springsteen and other stars
Marc Nabi, a Merrill Lynch analyst with a "buy" rating on Clear Channel stock, added that he was disappointed that the company predicted operating income would grow only by a low double-digit figure in 2004
Analysts surveyed by Thomson First Call had expected profit of 33 cents per share He said the company predicted that radio revenue in the January-March quarter would grow 3 percent to 5 percent over a year ago
The San Antonio-based company said revenue rose 4 percent to $2
The outdoor advertising unit, about 25 percent of Clear Channel revenue, did even better, jumping 14 percent 92 on the New York Stock Exchange 29 billion from $2
Clear Channel officials were upbeat in a conference call with analysts, with chairman and chief executive L
Mirsky said Clear Channel and other radio companies are being hurt because advertisers who once agreed to pay higher rates are now balking 42 billion in 2002 18 per share in 2002 Analysts say the developments are not yet weighing on the company's stock
Clear Channel's concert and billboard businesses picked up the slack in the radio unit
For all of 2003, Clear Channel earned $1 Revenue for 2003 was $8
Clear Channel, the nation's largest radio station owner, earned $187 million, or 30 cents per share, in the October-December period, compared with $184 million, also 30 cents per share, a year earlier Much of the improvement came from the weak dollar, which raised the value of foreign earnings He said they view low-end cable television as an alternative to radio 15 billion, or $1 The company said attendance rose last year even though there were fewer amphitheater events
"The advertisers got a little tired of being taken advantage of in the bubble years, and they're pushing back now," he said 85 per share, compared to $725 million, or $1 21 billion Nabi had predicted a 17 percent gain Clear Channel Profits Up but Miss Forecast
Feb 24, 4:33 PM EST
Radio giant Clear Channel Communications Inc It also faces a proposed $755,000 fine for airing sexually explicit daytime radio shows in Florida
Investors didn't like what they heard, however, sending Clear Channel's shares down 6 percent in morning trading
Clear Channel, which owns about 1,200 radio stations, has become a target for critics of media consolidation |