Ethiopian Review

CC Media Holdings Inc. and Clear Channel Outdoor Holdings Inc. both reported sizable decreases in revenue for the second quarter as advertising sales continued to decline.

CC Media Holdings (OTC BB: CCMO) — which owns San Antonio, Texas-based Clear Channel Communications Inc. — reported a net loss of $3.7 billion on $1.4 billion in revenue for the second quarter.

This compares with net income of $282.3 million on $1.8 billion in revenue for the same period a year ago. Revenue was down 21 percent between the two quarters.

During the quarter, the company performed an interim impairment test on goodwill and its indefinite-lived intangible assets as a result of the current global economic downturn. That led to the company recording a non-cash asset impairment charge of $4 billion and, ultimately, the quarterly net loss of $3.7 billion.

Clear Channel Communications owns a network of radio stations. More than a dozen are based in the Tampa Bay area, including WFLA-AM, known as Fox Newsradio 970; WFLZ-FM; WDDV-AM and WXTB-FM, known as 98 Rock.

Clear Channel Outdoor (NYSE: CCO), the world’s largest outdoor advertising company, reported a net loss of $689.1 million, or $1.94 a share, on revenue of $692.1 million for the second quarter. This compares with net income of $80.3 million, or 23 cents a share, on $914.8 million in revenue for the same period a year ago.

The outdoor advertising company’s revenue declined 24 percent between the two quarters as ad sales continued to be impacted by the global economic downturn.

Clear Channel Outdoor also performed an interim impairment test on goodwill and its indefinite-lived intangible assets, which resulted in a non-cash impairment charge of $812.4 million.

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