iHeartMedia 2003 Annual Report Download - page 36

Outdoor Advertising Results of Operations
Our outdoor advertising operating results were as follows:
Our outdoor advertising revenue increased $315.0 million in 2003 compared to 2002. The increase includes approximately $169.9 million
from foreign exchange increases. Also included in the increase is Ackerley, acquired in June 2002, which contributed $35.4 million in revenue
during the first six months of 2003.
We saw revenue increases across our entire inventory, but our bulletin inventory, which comprises about 60% of our domestic outdoor
revenue, fueled the growth. Our domestic bulletin inventory performed well year over year across the vast majority of our markets, with both
rates and occupancy up. We saw strong growth in both large markets such as New York, San Francisco, Miami and Tampa and in smaller
markets such as Albuquerque and Chattanooga. Top domestic advertising categories for us during 2003 were business and consumer services,
entertainment and automotive.
International revenue growth was spurred by our transit and street furniture inventory. This growth was driven by an increase in displays
and average revenue per display primarily from our street furniture products. Strong markets for our street furniture inventory were Australia,
Norway and the United Kingdom. This revenue increase was slightly offset by a decline in our international billboard revenues.
Divisional operating expenses increased $239.6 million in 2003 compared to 2002. Included in this increase is roughly $145.2 million in
foreign exchange increases. Also, Ackerley contributed approximately $19.3 million in divisional operating expenses during the first six
months of 2003. Roughly $13.8 million of the overall increase is from restructuring our international outdoor operations in France during the
second quarter of 2003. The remainder of the increase is partially attributable to direct production costs, site lease expenses, and bonus and
commission expenses associated with the increase in revenue.
Depreciation and amortization increased $42.7 million in 2003 compared to 2002. Approximately $25.0 million of the increase is
attributable to foreign exchange increases. The remaining increase is mostly from our acquisition of Ackerley in June 2002 and increased
display takedowns and abandonments in our domestic outdoor business in 2003 as compared to 2002.
Live Entertainment Results of Operations
Our live entertainment operating results were as follows:
Our live entertainment revenue increased $199.7 million in 2003 compared to 2002. Approximately $88.9 million is the result of foreign
exchange. In addition to foreign exchange, increased attendance, concessions and sponsorship revenues drove the revenue growth. Total and
average attendance at our amphitheater events was up in 2003, despite the fact that we saw a decline in the number of these events. The total
number of weeks presenting shows in our theater operations was also up in 2003. Some significant acts for 2003 were Cher, James Taylor,
David Bowie, Aerosmith/Kiss, Rolling Stones, Paul McCartney and Bruce Springsteen.
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(In thousands)
Years Ended December 31,
% Change
2003 2002 2003 v. 2002
Revenue $2,174,597 $1,859,643 17%
Divisional operating expenses 1,593,736 1,354,092 18%
Depreciation and amortization 379,640 336,895 13%
Operating income $ 201,221 $ 168,656
(In thousands)
Years Ended December 31,
% Change
2003 2002 2003 v. 2002
Revenue $2,646,959 $2,447,302 8%
Divisional operating expenses 2,455,897 2,289,654 7%
Depreciation and amortization 60,830 61,518 (1%)
Operating income $ 130,232 $ 96,130