iHeartMedia 2005 Annual Report Download - page 37

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37
International Outdoor Results of Operations
Our international operating results were as follows:
(In thousands) Years Ended December 31, % Change
2005 2004 2005 v. 2004
Revenue $ 1,449,696 $ 1,354,951 7%
Direct operating expenses 851,635 793,630 7%
Selling, general and administrative expenses 355,045 326,447 9%
Depreciation and amortization 220,080 201,597 9%
Operating income $ 22,936 $ 33,277 (31%)
International revenues increased $94.7 million, or 7%, during 2005 compared to 2004. Revenue growth was
attributable to increases in our street furniture and transit revenues. We also experienced improved yield on our street
furniture inventory during 2005 compared to 2004. We acquired a controlling majority interest in Clear Media Limited,
a Chinese outdoor advertising company, during the third quarter of 2005, which we had previously accounted for as an
equity method investment. Clear Media contributed approximately $47.4 million to the revenue increase. Leading
markets contributing to the Company’s international revenue growth were China, Italy, the United Kingdom and
Australia. The Company faced challenges in France throughout 2005, with revenues declining from 2004. Strong
advertising categories during 2005 were food and drink, retail, media and entertainment, business and consumer services
and financial services.
Direct operating expenses grew $58.0 million, or 7%, during 2005 compared to 2004. Included in the
increase is approximately $18.3 million from our consolidation of Clear Media. Approximately $33.2 million of the
increase was attributable to increases in revenue sharing and minimum annual guarantees partially from
consolidating Clear Media and new contracts entered in 2005. SG&A expenses increased $28.6 million primarily
from $26.6 million in restructuring costs from restructuring our business in France during the third quarter of 2005.
Depreciation and amortization increased $18.5 million during 2005 as compared to 2004 primarily from our
consolidation of Clear Media.
Reconciliation of Segment Operating Income (Loss)
(In thousands) Years Ended December 31,
2005 2004
Radio Broadcasting $ 1,199,869 $ 1,431,881
Americas Outdoor Advertising 359,248 263,888
International Outdoor Advertising 22,936 33,277
Other 30,694 52,496
Gain on disposition of assets - net 45,247 39,552
Corporate (190,401) (188,096)
Consolidated operating income $ 1,467,593 $ 1,632,998