SAN ANTONIO, TX (CelebrityAccess MediaWire) — CC Media Holdings, the parent to Clear Channel Communications and Clear Channel Outdoor, reported a loss of 3.7 billion on $1.4 billion in revenue for their second quarter results. CCMH posted a net income on 282.3 million $1.8 billion in revenue for the same period in 2008.
Among the loss leaders for the advertising and media giant were their Outdoor division, the world's largest outdoor advertising and billboard company, reported a net loss of $689.1 million on revenue of $692.1 million in Q2, compared against a net income of $80.3 million on $914.8 million in revenue in the same quarter 2008. Revenue from ad sales were down by 24% between the two quarters with the company citing the global economic downturn.
Revenue from Clear Channels' radio operations also dropped 20% to $717.6 million, slightly off from Q1's precipitous plunge of 22%.
The Wall Street Journal reported that the Clear Channel Media Holdings also disclosed that its debt-to-earnings also continued to worsen, expanding to 8.1 from 7.1 in Q1. The company will violate debt covenants if this ratio reaches 9.5 however, CC Media assured investors that this would be able to remain in compliance with their senior credit facilities. Many analysts however, expect that the CCMH will fall out of compliance during 2010 if they are unable to renegotiate terms with creditors. – CelebrityAccess Staff Writers