iHeartMedia 2010 Annual Report Download - page 35

THE COMPARISON OF YEAR ENDED DECEMBER 31, 2010 TO YEAR ENDED DECEMBER 31, 2009 IS AS
FOLLOWS:
Consolidated Results of Operations
R
evenue
Consolidated revenue increased $313.8 million during 2010 compared to 2009. Our radio broadcasting revenue increased $161.7
million driven by increases in both national and local advertising from average rates per minute. Americas outdoor revenue increased
$51.9 million, driven by revenue increases across most of our advertising inventory, particularly digital. Our International outdoor
revenue increased $48.1 million, primarily due to revenue growth from street furniture across most countries, partially offset by a
$10.3 million decrease from movements in foreign exchange. Other revenue increased $61.0 million compared to the same period of
2009, primarily from stronger national advertising in our media representation business.
D
irect Operating Expenses
Direct operating expenses decreased $141.1 million during 2010 compared to 2009. Our radio broadcasting direct operating
expenses decreased $81.6 million, primarily from a $29.9 million decline in expenses incurred in connection with our restructuring
program from which cost savings resulted in declines of $26.7 million and $11.0 million in programming expenses and compensation
expenses, respectively. Americas outdoor direct operating expenses decreased $19.5 million, primarily as a result of the disposition of
our taxi advertising business, partially offset by an increase in site lease expenses associated with the increase in revenue. Direct
operating expenses in our International outdoor segment decreased $45.6 million, primarily as a result of a $20.4 million decline in
expenses incurred in connection with our restructuring program in addition to decreased site lease expenses associated with cost
savings from our restructuring program, and included an $8.2 million decrease from movements in foreign exchange.
Selling, General and Administrative (“SG&A”) Expenses
Consolidated SG&A expenses increased $43.1 million during 2010 compared to 2009. Our radio broadcasting SG&A expenses
increased $47.6 million, primarily as a result of increased bonus and commission expense associated with the increase in revenue.
SG&A expenses increased $16.6 million in our Americas outdoor segment, primarily as a result of increased selling and marketing
costs associated with the increase in revenue in addition to the unfavorable impact of litigation. Our International outdoor SG&A
expenses decreased $6.3 million, primarily as a result of a decrease in business tax related to a change in French tax law, and included
a $2.3 million decrease from movements in foreign exchange.
31
(In thousands)
Years ended December 31,
2010 2009 % Chan
g
e
Revenue $5,865,685 $ 5,551,909 6%
O
p
eratin
g
ex
p
enses:
Direct o
p
eratin
g
ex
p
enses (excludes de
p
reciation and amortization) 2,442,167 2,583,263 (5%)
Selling, general and administrative expenses (excludes depreciation and
amortization)
1,509,692 1,466,593 3%
Cor
p
orate ex
p
enses (excludes de
p
reciation and amortization) 284,042 253,964 12%
De
p
reciation and amortization 732,869 765,474 (4%)
Im
p
airment char
g
es 15,364 4,118,924
Other o
p
eratin
g
ex
p
ense
–
net (16,71
0
) (50,837)
O
p
eratin
g
income (loss) 864,841 (3,687,146)
Interest ex
p
ense 1,533,341 1,500,866
Loss on marketable securities (6,49
0
) (13,371)
E
q
uit
y
in earnin
g
s (loss) of nonconsolidated affiliates 5,702 (20,689)
Other income
–
net 46,455 679,716
Loss before income taxes (622,833) (4,542,356)
Income tax benefit 159,98
0
493,32
0
Consolidated net loss (462,853) (4,049,036)
Less amount attributable to noncontrollin
g
interest 16,236 (14,95
0
)
Net loss attributable to the Com
p
an
y
$ (479,089) $(4,034,086)