So Far, Clear Channel’s Digital Strategy Is Breaking Even

The digital future is coming to radio, eventually. For now, Internet radio still represents a small portion of the radio listening audience. And, according to the latest earnings report from Clear Channel Communications, a radio giant that has been moving aggressively into the streaming world, its value is still unclear.

The Clear Channel all-purpose online music brand iHeartRadio attracted advertising in the latest quarter that helped offset losses from more traditional kinds of broadcasting. Yet the costs associated with streaming music weighed down what otherwise would have been savings on the terrestrial radio side. In results reported by CC Media Holdings, Clear Channel’s parent company, the media and entertainment division, which includes radio, had $799 million in revenue for the third quarter, up 0.9 percent from the same period last year, and the division’s earnings grew 2.6 percent to $310 million. CC Media Holdings, which also includes separate outdoor advertising divisions, had $1.59 billion in revenue over all, up only $4 million from last year, and its net loss narrowed to $39 million from $67 million. The holding company’s operating income before depreciation, amortization and noncash compensation expenses, its preferred method of measuring earnings, was unchanged at $480 million.