Clear Channel Losses
- Clear Channel Communications Inc., the radio broadcaster,
which brought the nation the drugged induced rantings of Rush
Limbaugh announced recently a 59 percent drop in earnings in the
first quarter of this year.
They are getting their hands burned for backing their self
styled wild man who apparently was popping pills while he was
popping off on national radio.
Clear Channel is also slimming down by splitting up its
operations by spinning off its live-entertainment division.
Clear Channel was also in difficulties over the way in which
it accepted and paid for recorded music. Many musicians claimed the
company was over controlling and did not pay market prices for the
music presented and actually limited play time to bands that would
agree to their strident demands.
The San Antonio-based company said it plans to sell stock
for 10 percent of its outdoor advertising division (highway
billboards). Around the nation the company owns thousands of
billboards on the highway. A large portion of this company's revenue
is generated by road houses featuring scantily clad women serving
alcohol to truck drivers as well as advertising political candidates.
Clear Channel reported a $47.9 million profit in the first
quarter, down from $116.5 million in the same quarter in 2004 which
was an election year.
The radio company's revenue in this quarter totaled nearly
$1.9 billion, down 4 percent from $2 billion in 2004.
The company has begun to expand however in outdoor
advertising on billboards, as well as at malls, airports and taxis.