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Chancellor's 4Q improves
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February 11, 1999: 9:55 a.m. ET
But media firm's loss tops forecast as revenue jumps; year's results beat street
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NEW YORK (CNNfn) - Chancellor Media, a leader in radio broadcasting with holdings in television and outdoor advertising, posted a fourth-quarter net loss exceeding Wall Street estimates, but its results showed an improvement over the year-earlier period as net revenue jumped more than 50 percent.
The net loss was due to non-cash depreciation, amortization and interest expenses, the company said.
For the quarter ended Dec. 31, the Chancellor (AMFM) reported a net loss of $33 million, or 23 cents a share, compared with a loss of $31.7 million, or 27 cents a share, a year ago.
Analysts polled by research firm First Call, however, expected the company to lose only 20 cents a share.
The highly acquisitive Chancellor, which has led the consolidation wave in the radio industry, recently hired BT Alex. Brown to review the company and propose strategies to boost its share price, which may include selling the company itself. The Dallas-based company said it also has employed other advisory firms, including Morgan Stanley Dean Witter and Goldman Sachs.
Consolidated net revenue for the quarter increased 50.6 percent to $374.8 million from $248.8 million.
"The excellent fourth quarter and 1998 full- year results reflect the radio group's continued positive ratings momentum and extend the robust cash flow growth trends established over the last several years," Chancellor's president and CEO Jeffrey A. Marcus said. He noted that the company's several acquisitions in 1998 broadened its asset base and positioned it for further growth.
"Our goals in 1999 are to continue to exceed industry growth rates, improve operating margins, grow free cash flow, reduce leverage and build shareholder value," Marcus said.
Notwithstanding the BT Alex. Brown strategic review, he said, "we intend to proceed with the previously announced LIN Television and Capstar Broadcasting mergers."
Year's results beat Street
For the full year, Chancellor Media results were better than expected. The company posted a net loss of $121.3 million, or 88 cents a share, compared with a loss of $43.9 million, or 46 cents a share, in 1997.
Analysts estimated the company would lose $1.39 a share for the year.
The company reported consolidated net revenues increased by 119 percent to $1.27 billion from $582.1 million in 1997.
Chancellor shares fell 4-3/8 to 49-3/8 on Wednesday. 
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Chancellor Media
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