Clear Channel posts weaker-than-expected profit

NEW YORK (Reuters) - Clear Channel Communications Inc (CCU.N: Quote, Profile, Research) posted a weaker-than-expected quarterly profit on Friday and the U.S. radio station operator said it was unclear whether a proposed buyout would be completed.

Last year, at the peak of the private equity boom, Clear Channel struck a $20 billion buyout deal with private equity firms Thomas H. Lee Partners THL.UL and Bain Capital.

The deal fell into litigation this year when THL and Bain filed suit against their bankers, who want to pull out of their financing commitment.

In its earnings report, Clear Channel said trial of the suit is set to begin June 2.

It said it was unable to estimate a closing date for the proposed buyout, adding that it "is not certain that a closing will occur."

Clear Channel's first-quarter net income rose to $799.7 million, or $1.61 a share, from $102.2 million, or 21 cents per share, a year earlier.

Earnings before discontinued operations, which includes the sale of many radio stations and its television group, amounted to 32 cents per share.

Excluding a gain related to the sale of an advertising company, profit before discontinued operations was 19 cents a share, falling short of analysts' average forecast of 21 cents, according to Reuters Estimates.

Revenue rose 4 percent to $1.56 billion. Foreign currency translation gains accounted for three-quarters of the increase.