The following supplementary information regarding the Infinity Broadcasting division of Viacom, Inc. as requested in class 8/29/2001. I want to be very clear that I am not promoting, endorsing, or in any other way stating that Infinity is one of the most important competitors of HBC. I am only providing a breakout of information not available in the current 10-K. Note the references, which I urge you to consult directly for clarification and/or further information if you decide to use this information in your paper.
"The Company's net revenues for 1999 were $2,449 million compared to $1,893 million for 1998, an increase of 29%. Radio net revenues for 1999 were $1,835 million compared to $1,459 million for 1998, an increase of approximately 26%. This increase was due to the strong performance of the stations and the inclusion of the operations of American Radio in the Company's results subsequent to its June 1998 acquisition. Outdoor net revenues for 1999 were $614 million compared to $434 million for 1998, an increase of approximately 41%. Driving this increase was the strong performance of the Company's outdoor advertising business and the acquisition of Outdoor Systems in December 1999. On a pro forma basis, the Company's net revenues for 1999 compared to 1998 increased approximately 17% (Infinity, 2000)."
Infinity Broadcasting Corporation. (2000). SEC form 10-K for 1999. p. 19. Accessed August 30, 2001 at http://www.sec.gov/Archives/edgar/data/1070518/0000950128-00-000584-index.html
"Infinity Radio's pro forma net revenues and EBITDA increased 14% and 18%, respectively, principally reflecting strong growth in the top 15 radio markets, with New York, Los Angeles, Chicago and San Francisco delivering double-digit revenue and EBITDA growth for the year. Infinity's outdoor advertising businesses pro forma net revenues and EBITDA increased 13% and 23%, respectively. Pro forma results assume the acquisition of Infinity Broadcasting, as part of the CBS merger, and the completion of all acquisitions and related divestitures of radio and outdoor properties by Infinity Broadcasting, including the acquisition of Infinity Outdoor, formerly known as Outdoor Systems, Inc. and 18 radio stations from Clear Channel, occurred at the beginning of each period presented (Viacom, 2001)."
Viacom, Inc. (2001). SEC form 10-K for 2000. p. II-9. Accessed August 30, 2001 at http://www.sec.gov/Archives/edgar/data/813828/000095013001500372/d10k.txt
Given the above two pieces of information, the Infinity Revenue (pro forma) for the total year 2000 that relates to "Infinity Radio" (see the definition of what this means in the Viacom and Infinity reports) can be estimated as follows:
$1,835 million (1999 radio from the Infinity Report) plus a 14% increase (or $257 from the Viacom report) giving an estimated total revenue of $2,092 million for the full year of 2000. This would not include Clear Channel or any other changes in properties.
Again, I caution you that this information may or may not be useful to you in your report, but is being provided in response to a student request.
- R. S. Kulzick - 08/30/2001 -