Advertising came to a screeching halt in fourth quarter driving Clear Channel Media Holdings down 14 percent to $1.6 billion, the radio and outdoor operator reported Monday (March 2).
For the year, CC posted a $4 billion loss in part to a $5.2 billion impairment charge. Revenue declined 3 percent to $6.7 billion.
Radio revenue dropped 13 percent in fourth quarter to $788.8 million. About 43 percent of the division's decline occurred during the fourth quarter, sending full year revenue down 7 percent to $3.3 billion.
Although outdoor revenue came in flat for the year at nearly $3.3 billion, it lost $2.8 billion. In fourth quarter, outdoor reported a $3 billion loss on $785.5 million, a 16 percent drop. CCO also took an impairment charge of $722.6 million on its permits and $2.5 billion to reduce its goodwill.
In January, to offset negative growth and cope with a declining ad market, Clear Channel began a restructuring program, eliminating 1,850 positions representing about 9 percent of its workforce, in addition to other cost savings initiatives. The company expects the cost savings initiatives to be fully implemented by first quarter next year.
CCMO, with about $18 billion in debt, was formed last year by Thomas H. Lee Partners and Bain Capital Partners when they purchased Clear Chanel Radio and Clear Channel Outdoor.