Clear Channel to Grow in Spanish

Clear Channel Communications, the largest U.S. radio broadcaster, said Thursday that it planned to convert as many as 25 stations to a Spanish-language format, capitalizing on the fastest-growing population segment in the U.S.

The number of stations broadcasting in Spanish will climb from 18 in the next year, San Antonio-based Clear Channel said. Spanish-language stations will account for about 2% of its 1,200 stations.

The change will enable Clear Channel to take advantage of a Spanish-language advertising market that is outpacing English-language radio stations, said Lee Westerfield, an analyst at Harris Nesbitt Corp. Sales at Spanish stations are expected to increase 10% this year and next year, he said. That compares with a pace in the general radio market of 2% to 3% this year and 4% in 2005.

“It’s a practical move intended to target the growth demographic of Hispanics,” said Westerfield, who rates Clear Channel shares “outperform” and doesn’t own them. “It’s a prudent business decision.”

Univision Communications Inc., the largest U.S. Spanish- language television and radio broadcaster, has 68 radio stations.

Mark Mays, Clear Channel’s chief operating officer, this year said the company planned to add Spanish stations as demand for them increased.

Latinos make up about 14% of all U.S. citizens, and their numbers are increasing at almost quadruple the pace of the population as a whole, making it the fastest-growing group, according to the U.S. Census Bureau.

Clear Channel probably won’t need to convert additional stations beyond the 25 announced Thursday, Westerfield said. Almost 75% of U.S. Spanish speakers live in 15 large advertising markets. That allows broadcasters to reach the population with relatively few stations, he said.

Shares of Clear Channel rose 29 cents to $33.27 on the New York Stock Exchange. They have dropped 29% this year.

Clear Channel plans to make the first switch at an Atlanta station. Alfredo Alonso was named senior vice president of Hispanic Radio, a new position, the company said.

The company’s plan was reported earlier in the Wall Street Journal.