Clear Channel (stock symbol CCU at New York
Stock Exchange-NYSE ) reported a 3rd 2003 quarter total turnover
of 2.54 billion USD and net earnings of 636 million USD. Clear
Channel Entertainment (CCE), the part of the company controlling
the live business of the corporate giant achieved a turnover
of 936,231 million USD in the same period, and achieved earnings
before interests, taxes, depreciation and amortisation (EBITDA)
of 96,811 million USD. Even though these figures appear quite
impressive compared to the results of the radio division of
CCU in reality they are not. In Q3-2003 the turnover of the
radio business at CCU was 963,635 million USD almost equal
to the Entertainment division, but with a reported EBITDA
result of 427,140 million USD the profit margin of the radio
segment of the company clearly highlights the difference.
However, the long-term debt situation of CCU
is still an issue. In Q4-2002 the company reported long-term
debts for 2002 of 8,877,622 billion USD, in 2001 9,482,943
billion USD.
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In
the current business report this figure for long-term debts
was 7,327,863 billion USD, while the current liabilities are
indicated as 1,924,490 billion USD. In Q4-2002 the current liabilities
were 1,614,107 billion USD.
Randall Mays, Chief Financial Officer of Clear Channel commented
on the overall results, “During this past quarter, we
were once again able to strengthen our balance sheet by utilizing
our free cash flow and proceeds from sales of investments
to decrease our total debt by $646 million and improved our
leverage ratio to 3.2x. In spite of a tough economic environment,
we still increased our free cash flow by 14% for the third
quarter and 21% for the nine months of 2003. I am pleased
with our overall financial position as we near the end of
2003.”
On November 4, CCU had credit volume available through 3
domestic banks of 1.2 billion USD. For the rest of this the
year CCU expects a slightly better EBITDA for the ongoing
year compared to 2002. Last year’s was 578,908 million
USD. The inventory for the music division of the Entertainment
segment currently consists of 135 venues out of which 41 are
amphitheatres.
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