Clear Channel Communications Inc. on Friday released earnings for the media and entertainment company's first quarter and declined to provide an outlook due to the pending buyout deal.
The company, which owns eight Cincinnati radio stations, had been set to finalize its merger with an investment group led by Thomas H. Lee Partners LP and Bain Capital Partners LLC by the close of the first quarter. The deal has not yet happened as lenders' have been reluctant to finance the deal.
The San Antonio-based radio broadcaster and outdoor advertising company and the investment group filed a lawsuit against the lenders on March 26 in Bexar County District Court to force them to fund the merger agreement. A trial date is scheduled for June 2.
Officials at Clear Channel said they are not sure when the deal will be sealed and are not certain that a closing will occur.
Clear Channel said its radio revenues were down 4 percent in the first quarter of 2008, to $769.6 million from $799.2 million, but the company overall saw a 4 percent revenue gain in the quarter, to $1.6 billion from $1.5 billion.
The company's earnings benefited from the $1 billion sale of its television group, which included WKRC-TV, to an affiliate of Providence Equity Partners Inc.
Excluding items, Clear Channel said it had adjusted earnings of $94.2 million, or 19 cents a share, essentially flat from a year ago. Expenses, meanwhile, rose by 8 percent, to $1.1 billion from $1 billion.
While our results were affected by the soft advertising market, we continued to out-deliver the majority of our media industry peers, said CEO Mark Mays in a release.
Our radio operations out-performed the majority of our markets in the quarter, and we continued to invest in our content and online assets in an effort to strengthen our value proposition to both our listeners and advertisers. We believe our concerted investment strategy will position our businesses for growth over the long-term, Mays added.