Clear Channel Posts 64% Earnings Jump

Radio giant Clear Channel Communications Inc. reported a 64% increase in first-quarter profit Tuesday, boosted by asset sales and improved outdoor advertising revenue.

Clear Channel also said Chairman and Chief Executive Lowry Mays had surgery Friday for a blood clot and bleeding in his brain.

Doctors expect a complete recovery, said his son, President and Chief Operating Officer Mark Mays.

The nation’s largest operator of radio stations earned $116.5 million, or 19 cents a share, during the January-to-March period, up from $71 million, or 12 cents, in the year-earlier period.

Revenue rose 11% to $1.97 billion from $1.78 billion.

“Our results this quarter highlight the tremendous operating leverage of our businesses in an improving revenue environment,” Mark Mays said. “We realized impressive revenue gains in each of our operating divisions and were successful in translating this performance into cash flow and earnings growth.

“With the economy strengthening and the advertising environment continuing to improve, we are ideally positioned to deliver impressive growth for the remainder of the year and beyond,” he said.

The San Antonio-based company said its quarterly earnings included $47 million and $11.6 million of pretax gains related to the sale of its remaining investment in Univision Communications Inc. and its sale of radio assets.

Offsetting the gains was a $31.4-million pretax loss on the early retirement of debt, the company said.

Income excluding those items would have been $100.3 million, or 16 cents a share, a 33% increase over per-share earnings a year earlier. That beat the 14 cents a share expected by analysts, Thomson First Call said.

Clear Channel operates about 1,200 radio stations and 19 television stations in the United States and has an ownership stake in 250 radio stations overseas. The company also is the world’s largest producer of concerts and other live-entertainment events and has significant interests in billboards.

Clear Channel shares fell 25 cents to $41.78 on the New York Stock Exchange.