SAN ANTONIO – CC Media Holdings Inc. (OTCBB: CCMO) today posted a 2008 loss of loss of $4 billion, a $4.94 billion decline from its year-ago profit of $938.51 million, on annual revenue that shrank 3.36 percent to $2.90 billion. It cited fourth-quarter non-cash impairment charges of $5.26 billion: a $1.7 million writedown of the value of its Federal Communications Commission (FCC) licenses and permits and a $3.6 million goodwill writedown.

“Earnings per share are … not meaningful, due to the post-merger and pre-merger comparisons,” noted CC Media, whose Clear Channel Communications Inc. subsidiary is the parent of local radio stations WHJJ-AM, WHJY-FM, WSNE-FM and WWBB-FM. All data for 2007 are from Clear Channel alone; results for the first half of 2008 include consolidated data from both Clear Channel and CC Media; and results for the second half of 2008 reflect the combined, post-merger entity, the company said.

Its consolidated results for 2008 included expenses of $155.77 million – up from $6.76 million in 2007 – related to Clear Channel’s June 30 acquisition by CC Media Holdings, a special-purpose company established by private equity firms Capital Partners LLC and Thomas Lee Partners LP, in a cash-and-stock deal valued at about $17.9 billion. (READ MORE)

Among segments, radio broadcasting revenue fell to $3.29 billion last year from $3.56 billion in 2007; outdoor advertising revenue “was relatively flat” at $3.29 billion, compared with $3.38 billion the year before; and other revenue edged up to $209.97 million from 2007’s $207.70 million.

“Although CC Media Holdings’ revenue [was] down in 2008, our radio and outdoor businesses performed well compared to their sectors,” said CEO Mark P. Mays. “These are challenging times, which have taken their toll on many of our advertisers.”

For the three months ended Dec. 31, CC Media posted a loss of $5 billion – a $5.32 billion decline from its year-ago profit of $320.56 million – on fourth-quarter revenue that shrank 13.63 percent to $1.61 billion.

Besides the $5.26 billion impairment charge, results for the quarter included merger-related costs of $68.08 million, compared with $390 million in similar charges in the 2007 fourth quarter. Unfavorable currency exchange rates cost the company about $55.2 million in the 2008 fourth quarter, compared with the year-ago period’s gain of about $62.6 million from favorable exchange rates.

Going forward, Mays said, “macroeconomic conditions will continue to present a stark reality where disciplined focus on working with our advertising partners, cost-containment and the flexibility to adjust to change are essential. Most importantly, we are so appreciative of the tremendous efforts expended by our employees to meet the demands of these difficult times.”

As of Dec. 31, the company had recognized about $95.9 million in expenses – $52.5 million in the radio segment, $27.8 million in the outdoor advertising segment and $3 million in corporate and other segments – related to its post-merger restructuring. Those costs included about $83.3 million in severance-related expenses and $12.6 million in professional fees, CC Media said.

In January, the company announced further cost-cutting plans – aiming to pare fixed annual costs by about $350 million by the end of the 2010 first quarter – that called for the elimination of another 1,850 jobs, or 9 percent of its staff. (READ MORE) “The restructuring program will also include other actions, including elimination of overlapping functions and other cost savings initiatives,” CC Media said today.

Clear Channel Communications Inc. – a global media and entertainment company, founded in 1972, that owns or operates more than 2,000 radio stations nationwide – is a subsidiary of the San Antonio-based CC Media Holdings Inc. (OTCBB: CCMO). Its Clear Channel Radio Providence division is the operator of local stations 920 WHJJ-AM talk radio, 94 WHJY-FM, 93.3 WSNE “Coast FM” and WWBB-FM “B101.” Additional information is available at www.ClearChannel.com.