Clear Channel parent's 1Q loss expands
SAN ANTONIO, Texas—CC Media Holdings Inc., the privately held parent of the Clear Channel radio network, said Friday that its net loss expanded in the first quarter as revenue rose 3 percent but costs grew faster.
It also completed a debt refinancing through a subsidiary to pay down some debt owed in the near term. That added to its long-term borrowings.
The net loss in the three months to March 31 came to $143.6 million, worse than the net loss of $131.8 million a year ago.
Revenue grew 3 percent to $1.36 billion from $1.32 billion a year ago, as outdoor billboard revenue grew and new revenue came from the acquisition of
Clear Channel was taken private in 2008 by the Thomas H. Lee Partners and Bain Capital funds, a move that put about $20 billion of debt on the books. Some of that debt is publicly traded, requiring the company to report its results.
In March a subsidiary of Clear Channel Outdoor Holdings Inc. raised $2.2 billion by selling bonds, and then paid out most of it through a special dividend of $6.08 per share.
That helped CC Media Holdings pay off some of its senior secured credit facility debt. However, long-term debt rose to $20.7 billion at the end of March from $20.2 billion at the end of December.
The company increased cash on the books to $1.33 billion from $1.23 billion.
At its publicly traded subsidiary, Clear Channel Outdoor, net loss expanded to $43.9 million, or 14 cents per share, from a loss of $9.5 million, or 3 cents per share, a year ago.
That's worse than the 8 cents per share loss expected by analysts polled by FactSet.
Revenue was virtually flat at $651.3 million. Analysts expected $662.2 million.
Excluding the impact of foreign currency movements, revenue grew 2 percent.
Shares of Clear Channel Outdoor fell 41 cents, or 5.6 percent, to $6.98 in afternoon trading.