Earnings Rise 1.8% at Clear Channel

Clear Channel Communications Inc., the largest U.S. radio broadcaster, said Tuesday that fourth-quarter earnings rose 1.8% as higher billboard advertising revenue overcame lower sales of radio ads.

Net income rose to $187.2 million, or 30 cents a share, from $183.9 million, or 30 cents, a year ago, the San Antonio-based company said. The profit was below the average estimate of 33 cents a share, according to a survey of 21 analysts by Thomson Financial. Sales rose 3.6% to $2.29 billion.

Radio sales fell 1.4% as local advertisers didn’t boost spending, the company said. Radio usually accounts for about two-thirds of Clear Channel’s profit.

Clear Channel shares fell 92 cents, or 2.1%, to $42.92 on the New York Stock Exchange. They’ve risen 24% in the last year.

Clear Channel was expected to report net income of $207.2 million, according to analysts surveyed by Thomson Financial.

“Even though they did about $100 million worse than my estimate on revenue, their expenses came in lighter than my expectations,” said David Joyce, an analyst with Guzman & Co. “They’re still a very good cost controller.”

Clear Channel also benefited from higher profit in its outdoor advertising business as marketers increased spending on billboards in U.S. cities including New York and San Francisco.

The company said it expected earnings per share this year to rise by a percentage in the “mid-to-high teens” from $1.85 in 2003.

During a conference call, the company said radio sales would rise 3% to 5% this quarter.

Radio sales in the latest quarter fell to $965.8 million and profit fell 6.3% to $364.3 million.

The whole radio industry has been struggling.

This month, Viacom Inc.’s Infinity radio unit, the second-largest U.S. radio broadcaster, reported a 2.5% decline in fourth-quarter sales.

Clear Channel’s other units helped compensate for radio’s decline. Profit at the outdoor advertising unit jumped 44% to $83.8 million. The unit’s sales increased 14% to $614.8 million.

The entertainment unit, which produces rock concerts and other live events, reported a profit of $4.69 million, compared with a loss a year earlier, on sales of $596.9 million.