Nathan Newman wrote:
>One reason Clear Channel invests in radio is
>that they don't have to make massive profits from their radio stations,
>since it reinforces their other profit-making divisions like concert
>venues.
-Huh? Clear Channel's radio operations made $1.2 billion on $3.5 -billion in revenues in 2005
Hmm--I had missed the sale of its live entertainment division, but according to this Forbes article, the earnings at Clear Channel are less rosy than you are making it out to be: http://www.forbes.com/home/feeds/ap/2006/02/21/ap2542942.html
Most of that 2005 profits for Clear Channel came from selling its former live entertainment division. The rest of its earnings appear to be part of complicated reevaluation of intangible assets.
Overall-- Forbes claims in the forth quarter, the company had earnings of only $183 million if you exclude the sale and accounting maneuvers, not such an astounding profit on revenues of $1.76 billion for the quarter.
Who knows-- maybe Clear Channel is hiding lots of profits, but it's not clear in this mess of numbers.
Nathan Newman