Clear Channel Communications Inc., the radio broadcaster, which brought the nation the drugged induced rantings of Rush Limbaugh announced recently a 59 percent drop in earnings in the first quarter of this year.
They are getting their hands burned for backing their self styled wild man who apparently was popping pills while he was popping off on national radio.
Clear Channel is also slimming down by splitting up its operations by spinning off its live-entertainment division.
Clear Channel was also in difficulties over the way in which it accepted and paid for recorded music. Many musicians claimed the company was over controlling and did not pay market prices for the music presented and actually limited play time to bands that would agree to their strident demands.
The San Antonio-based company said it plans to sell stock for 10 percent of its outdoor advertising division (highway billboards). Around the nation the company owns thousands of billboards on the highway. A large portion of this company’s revenue is generated by road houses featuring scantily clad women serving alcohol to truck drivers as well as advertising political candidates.
Clear Channel reported a $47.9 million profit in the first quarter, down from $116.5 million in the same quarter in 2004 which was an election year.
The radio company's revenue in this quarter totaled nearly $1.9 billion, down 4 percent from $2 billion in 2004.
The company has begun to expand however in outdoor advertising on billboards, as well as at malls, airports and taxis.
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