Clear Channel Loses $3.7 Billion
August 10, 2009 by Mark Ellis
Filed under Business
The second quarter did not go so well for CC Media Holdings Inc. and Clear Channel Outdoor Holdings Inc., with both companies posting a significant drop in revenue thanks to weak advertising spending. CC Media, the owner of Clear Channel Communications, saw revenue of $1.4 billion create a net loss of $3.7 billion.
Compared to the company’s performance from a year ago, revenue has fallen from $1.8 billion and earnings from $282.3 million to their current states. From the last quarter to now, revenue fell 21 percent, exacerbating a situation that had already turned sour when Clear Channel incurred an impairment charge of $4 billion.
Clear Channel Outdoor reported a net loss of $689.1 million on revenues of $692.1 million, signaling dire straits for the world’s largest outdoor advertising company. Just last year, Clear Channel Outdoor’s revenue topped $914.8 million and allowed a net income of $80.3 million. The company also reported a 24 percent drop in revenue from last quarter to now, blaming the recession for severely weakening ad spending.
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