The radio broadcasting and outdoor (billboard) advertising company, Clear Channel Communications reports that its net revenues increased 56 percent for the second quarter, establishing a record. Clear Channel also says that its after-tax cash flow per share increased 33 percent for the same period. The "most successful second quarter in the company's history" is welcome news to those anticipating the pending purchase of SFX Entertainment by Clear Channel, which is expected to take place this fall.
Clear Channel company statements indicate that, "for the three months ended June 30...after-tax cash flow was $271.8 million, a 53 percent increase over $178.2 million reported in the second quarter of 1999. The company's diluted after-tax cash flow per share for the quarter ended June 30 was $0.73 compared to $0.55 for the second quarter of 1999, an increase of 33 percent. After-tax cash flow is defined as diluted net income before unusual and non-recurring items plus depreciation and intangible amortization (including nonconsolidated affiliates)."
The statement went on to say that "consolidated net revenues increased 56 percent to $965.9 million from $617.7 million last year. Net income for the second quarter of 2000 was $31.2 million, compared with net income of $106.5 million in the second quarter of 1999. Net income, excluding the net gain on sale of stations, would have been $18.8 million in the second quarter of 1999."
Clear Channel has invested an estimated $130 million in acquiring several regional stations in the past two weeks.
The Clear Channel report also said that "during the first six months of 2000, after-tax cash flow was $464.0 million, or $1.24 per share, a 33 percent increase over the $282.0 million, or $0.93 per share, reported in last year's comparable period. All per-share amounts presented above are based on diluted shares outstanding. Net revenue increased 76 percent to $1.7 billion versus $994.5 million for the first six months of 1999." Clear Channel reported the completion of two debt offerings, "a $1 billion U.S. offering and a Euro-denominated offering of 650 million."
Clear Channel said it "continues to progress toward completing its acquisitions of AMFM Inc., and SFX Entertainment, Inc. in the third quarter of this year."
After an aggressive acquisitions campaign in sports and entertainment, SFX Entertainment has sought to establish an early lead in marketing “live experiential” events. SFX develops and manages touring Broadway shows, and sells Broadway subscription series and individual productions in 55 markets. An integrated franchise that promotes and produces a broad variety of live entertainment events locally, regionally and nationally, SFX has 122 venues overall, and owns or operates venues in 31 of the top 50 domestic markets.
Once Clear Channel finalizes the two outstanding deals -- its $14 billion deal to purchase radio broadcaster AMFM and the subsequent $4.4 billion stock swap deal for SFX -- the company will operate a total of 874 radio and 19 television stations in the United States and will have equity interests in over 240 radio stations around the world. In its other significant business, Clear Channel operates more than 700,000 outdoor advertising displays,including billboards, street furniture and transit panels.
-- By Murdoch McBride