iHeartMedia 2006 Annual Report Download - page 4

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4
The closing of these radio station sales is subject to antitrust clearances, FCC approval and other customary closing
conditions. Additionally, in connection with the Merger Agreement, we may be required to dispose of radio stations in
certain markets that do not currently conform to the FCC’s market ownership rules.
Our principal executive offices are located at 200 East Basse Road, San Antonio, Texas 78209 (telephone: 210-
822-2828).
Operating Segments
Our business consists of three reportable operating segments: radio broadcasting, Americas outdoor advertising
and international outdoor advertising. The radio broadcasting segment includes radio stations for which we are the
licensee and for which we program and/or sell air time under local marketing agreements or joint sales agreements. The
radio broadcasting segment also operates radio networks. Our Americas outdoor advertising segment consists of our
operations primarily in the United States, Canada and Latin America, with approximately 94% of our 2006 revenues in
this segment derived from the United States. Our international outdoor advertising segment consists of our advertising
operations in Europe, Australia, Asia and Africa, with approximately half of our 2006 revenues in this segment derived
from France and the United Kingdom. The Americas and international outdoor advertising segments include advertising
display faces which we own or operate under lease management agreements. We also own television stations and a
media representation business.
Information relating to the operating segments of our radio broadcasting, Americas outdoor advertising and
international outdoor advertising operations for 2006, 2005 and 2004 is included in “Note O - Segment Data” in the
Notes to Consolidated Financial Statements in Item 8 included elsewhere in this Report.
Company Strategy
Utilize media assets to serve the needs of local communities
Our strategy is to serve the needs of the local communities in which we operate by using our media assets to
provide products and services on a local, regional and national level and to be a contributing member of the communities
in which we operate. We believe that by serving the needs of local communities, we will be able to grow revenues and
earnings, creating economic value that will ultimately be translated into value for our shareholders.
Provide compelling content on our media assets
We are trusted with public radio and television airwaves. This trust requires our constant focus and
determination to deliver the best product in order to attract listeners and viewers. We attract listeners and viewers by
providing compelling musical, news and information content on our stations. We conduct research to determine what
listeners and viewers want and deliver it to them on a continuous basis. We strive to maintain compelling programming
to create listener and viewer loyalty. In addition, we bring content to our outdoor business to make our displays
interesting and informative for consumers.
Provide diverse product mix to assist clients in selling their products and services
We believe one measure of our success is how well we assist our clients in selling their products and services.
To this end, we offer advertisers a geographically diverse platform of media assets designed to provide the most efficient
and cost-effective means to reach consumers. Our entrepreneurial managers work creatively and expertly to help our
clients, at all levels, market their goods and services. If we are successful helping advertisers and sponsors reach their
consumers, we believe we will gain their continued business and long-term commitments. Those commitments build
our revenue and ultimately build value for our shareholders.
Maintain an entrepreneurial culture
We maintain an entrepreneurial and customer-oriented culture by empowering local market managers to
operate their businesses as separate profit centers, subject to centralized oversight. A portion of our managers'
compensation is dependent upon the financial success of their individual business units. This culture motivates local
market managers to maximize our cash flow from operations by providing high quality service to our clients and seeking
innovative ways to deploy capital to further grow their businesses. Our managers also have full access to our extensive
centralized resources, including sales training, research tools, shared best practices, global procurement and financial
and legal support.