Radio revenues fall at Clear Channel

Clear Channel, which dominates the US radio industry and owns entertainment venues on both sides of the Atlantic, yesterday said advertising sales on the airwaves had continued to slide in the second quarter.

The company, which owns 1,200 stations across the US, about 10% of the market, said radio revenues had fallen by 2.1%.

Clear Channel dwarfs its nearest competitor and is commonly blamed for the dire state of US radio, which listeners are deserting in droves - accusations the company has vigorously denied.

There has been speculation that Clear Channel, which owns the Carling Apollo in west London and the biggest outdoor advertising business in Britain, has been eyeing radio in the UK as well.

The company said yesterday it "does not accept negative growth" in its radio business "under any circumstances, even under an uncertain environment", and added that it expected the advertising market to rebound by a low single-digit percentage in the third quarter.

It blamed the second quarter fall on rivals dropping their rates, soft local advertising markets and a downturn in the consumer products and fast food sectors.

It said audiences increased at 30 of its top 47 stations.

The weakness in radio was offset by a 20% increase in revenues from its billboard business, boosted by the acquisition of Ackerley Group last year. In Britain, where the company owns the Adshell and More O'Ferrall brands, revenues declined.

Outdoor entertainment revenues were 9% higher at $676m (£422m).

The group reported earnings of $251m, against $238m in the same quarter a year ago. Stripping out one-off charges and gains in both years, the comparative figure was flat.

The US department of justice is conducting two investigations into business practices at Clear Channel, assistant attorney general Hewitt Pate told a congressional committee last week.