The Associated Press

Fri, May 9, 2008 (6:22 a.m.)

Clear Channel Communications Inc. reported Friday its first-quarter profit soared due to asset sales, an investment gain and higher revenue, but earnings from continuing operations were flat.

The radio broadcaster and outdoor advertising company, which is battling its lenders as it struggles to complete a deal to go private, earned $799.7 million, or $1.61 per share, in the first three months of the year.

In the same period a year earlier, the San Antonio-based company earned $102.2 million, or 21 cents per share.

Revenues rose 4 percent to $1.56 billion from $1.51 billion, but excluding the effects of foreign exchange swings the earnings would have risen 1 percent.

Clear Channel just completed the sale of its TV station group in March for $1 billion and is in the process of shedding 275 radio stations as part of the pending transaction to take the company private.

Excluding discontinued operations and gains from asset sales, including a $67.2 million gain from selling an interest in a South Africa-based outdoor advertising company, earnings from continuing operations were $94.2 million or 19 cents per share in the latest period, versus $95.1 million, also 19 cents per share, a year earlier.

Analysts polled by Thomson Financial had expected 21 cents per share.

Clear Channel's shareholders approved a revised buyout plan on Sept. 25, and the company had hoped to close the deal by the end of the first quarter.

However, the company has been in a dispute with lenders in the deal and sued them on March 26. The case is set to go to trial on June 2.

Its shares rose 16 cents to $30 in premarket trading.