Clear Channel posts rise in profits

US radio giant Clear Channel has reported a rise in profits in the second quarter of the year despite a fall in radio advertising.

Clear Channel - which is the leading outdoor advertiser in the UK and owns sports agency SFX - said net income in April, May and June increased to £155m from £146.8m this time last year.

Overall revenues at the Texas-based company rose by 7% to £1.43bn from £1.34bn, with its outdoor billboard and live entertainment businesses making gains.

The company said radio advertising had fallen because of poor local sales and a slowdown in revenues from the consumer products and fast food advertising sectors.

Clear Channel has become by far the US's largest radio company, owning more than 1,200 stations and commanding a sixth of the advertising market.

It has been touted as a possible bidder for UK radio assets now that the communications bill has been passed, but has played down any designs on companies like Capital Radio.

The group said revenues had declined at its UK outdoor advertising business, which has 25% of the market, ahead of JC Decaux, Viacom and Maiden.

Mark Mays, the president of Clear Channel, said the group expected to turn in a better set of results for the last six months of 2003.

"We are seeing a gradual improvement in the economy and are looking for a stronger second half as the environment improves," he said.

It emerged last week that Clear Channel is being investigated by US justice officials over allegations it has abused its dominance of the radio market.