Clear Channel Communications Inc., a major radio and outdoor advertising company, reported higher first-quarter earnings Friday on asset sales but operating results were flat, reflecting weak demand for radio advertising.

The San Antonio, Texas-based company is battling its lenders in court as it tries to go private, and says it's not sure when the $19.5 billion deal will close, if at all.

Clear Channel earned $799.7 million, or $1.61 per share, in the first three months of the year, versus $102.2 million, or 21 cents per share, in the same period a year ago.

Revenues rose 4 percent to $1.56 billion from $1.51 billion, but excluding the effects of foreign exchange swings revenues 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 gains from those sales as well as a $67.2 million profit 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.

The results were slightly below the 21 cents per share estimate of analysts polled by Thomson Financial.

Clear Channel struck an agreement with the buyout firms Thomas H. Lee Partners and Bain Capital in late 2006 to be taken private, but the deal has been dogged by challenges since then, first facing shareholder objections and then with difficulties lining up financing.

In late March the company and the buyout firms sued the six banks financing the deal, saying they were reneging on their commitment to help fund the transaction. Continued...