Clear Channel's Income Rises, But Stock Drops

 SAN ANTONIO (CBSDFW.COM/AP) -- Outdoor advertising company Clear Channel Outdoor Holdings Inc. said net income for the final three months of 2011 rose from a year earlier, but a decline in U.S. advertising spending held earnings below Wall Street expectations.

The company's stock fell more than 5 percent in morning trading Tuesday after the release of results.

The company said Tuesday that revenue in the Americas dropped 1 percent from a year ago to $359 million. Demand was lower for mall displays, posters and other products as retailers kept a lid on their marketing budgets.

International revenue rose 6 percent to $457 million on higher demand in China, Sweden, and Australia.

Even though revenue in the Americas is smaller than Clear Channel's overseas revenue, the company still relied on its U.S. business for a bigger share of its operating income during the fourth quarter.

Operating income in the Americas was $84 million during the fourth quarter, compared with operating income in the international division of $57.2 million.

The decline in U.S. revenue crimped profits, even though overall revenue was up.

The company said that during the quarter that ended Dec. 31, net income was $22.6 million, or 6 cents per share, compared with $4 million, or break-even on a per-share basis, a year earlier. Analysts surveyed by FactSet were expecting 10 cents per share.

Revenue during the quarter was $816 million, up 3 percent from $793 million. That was roughly in line with the $815 million analysts expected.

As revenue from mall displays and posters declines, Clear Channel is expanding into other advertising formats, including digital displays.

Chief Financial Officer Tom Casey said the company added 242 digital billboards across the United States last year, bringing the total to 857. The company is also boosting its digital offerings in international markets such as Sweden and the Britain.

For the full year, the company reported net income of $42.9 million, or 11 cents per share, compared with a net loss of $87.5 million, or 26 cents per share, in 2010.

Revenue for the year was $3 billion for the year, up 7 percent from $2.8 billion.

Shares fell 66 cents, or 5.2 percent, to $11.96 in morning trading.

CBS Radio, which owns CBSDFW.COM, is a direct competitor to Clear Channel.

(Copyright 2012 by CBS Local.  The Associated Press contributed to this report.  All Rights Reserved.)