iHeartMedia 2011 Annual Report Download - page 34

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Macroeconomic Indicators
Our advertising revenue for all of our segments is highly correlated to changes in gross domestic product (“GDP”) as
advertising spending has historically trended in line with GDP, both domestically and internationally. According to the U.S.
Department of Commerce, estimated U.S. GDP growth for 2011 was 1.7%. Internationally, our results are impacted by fluctuations in
foreign currency exchange rates as well as the economic conditions in the foreign markets in which we have operations.
Executive Summary
The key highlights of our business for the year ended December 31, 2011 are summarized below:
The key highlights of our business for the year ended December 31, 2010 are summarized below:
31
•
Consolidated revenue increased $295.7 million durin
g
2011 com
p
ared to 2010.
•
CCME revenue increased $117.6 million during 2011 compared to 2010, due primarily to increased revenue
resulting from our April 2011 addition of a complementary traffic operation to our existing traffic business,
Total Traffic Network, through our acquisition of the traffic business of Westwood One, Inc. (the “Traffic
acquisition”). We also purchased a cloud-based music technology business in the first quarter of 2011 that has
enabled us to accelerate the development and growth of the next generation of our iHeartRadio digital
p
roducts.
•
Americas outdoor revenue increased $46.6 million during 2011compared to 2010, driven by revenue growth
across our bulletin, airport and shelter displays, particularly digital displays. During 2011, we deployed 242
digital billboards in the United States, compared to 158 for 2010. We continue to see opportunities to invest in
di
g
ital dis
p
la
y
s and ex
p
ect our di
g
ital dis
p
la
y
de
p
lo
y
ments will continue throu
g
hout 2012.
•
International outdoor revenue increased $159.3 million during 2011 compared to 2010, primarily as a result of
increased street furniture revenues and the effects of movements in foreign exchange. The weakening of the
U.S. Dollar throughout 2011 has significantly contributed to revenue growth in our International outdoor
advertising business. The revenue increase attributable to movements in foreign exchange was $82.0 million
for 2011.
•
We issued $1.75 billion aggregate principal amount of 9.0% Priority Guarantee Notes due 2021 during 2011,
consisting of $1.0 billion aggregate principal amount issued in February (the “February 2011 Offering”) and an
additional $750.0 million aggregate principal amount issued in June (the “June 2011 Offering”). Proceeds of
the February 2011 Offering, along with available cash on hand, were used to repay $500.0 million of our senio
r
secured credit facilities and $692.7 million of our 6.25% senior notes at maturity in March 2011. Please refer to
the “Refinancing Transactions” section within this MD&A for further discussion of the offerings, including the
use of the proceeds of the June 2011 Offering.
•
During 2011, CC Finco, LLC (“CC Finco”), our indirect subsidiary, repurchased $80.0 million aggregate
principal amount of our outstanding 5.5% senior notes due 2014 for $57.1 million, including accrued interest,
throu
g
h o
p
en market
p
urchases.
•
During 2011, CC Finco purchased 1,553,971 shares of our indirect subsidiary, Clear Channel Outdoor
Holdings, Inc.’s (“CCOH”), Class A common stock through open market purchases for approximately $16.4
million.
•
During 2011, we repaid our 4.4% senior notes at maturity for $140.2 million (net of $109.8 million principal
amount held by and repaid to one of our subsidiaries), plus accrued interest.
•
Consolidated revenue increased $313.8 million during 2010 compared to 2009, primarily as a result of
im
p
roved economic conditions.
•
CCME revenue increased $163.9 million during 2010 compared to 2009, primarily as a result of increased
avera
g
e rates
p
er minute driven b
y
increased demand for both national and local advertisin
g
.
•
Americas outdoor revenue increased $51.9 million during 2010 compared to 2009, driven by revenue growth
across our advertisin
g
inventor
y
,
p
articularl
y
di
g
ital.
•
International outdoor revenue increased $48.1 million during 2010 compared to 2009, primarily as a result of
increased revenue from street furniture across most countries, partially offset by a decrease from movements in
forei
g
n exchan
g
e of $10.3 million.
•
Our subsidiary, Clear Channel Investments, Inc. (“CC Investments”), repurchased $185.2 million aggregate
p
rinci
p
al amount of our senior to
gg
le notes for $125.0 million durin
g
2010.
•
We re
p
aid $240.0 million u
p
on the maturit
y
of our 4.5% senior notes durin
g
2010.