Clear Channel is the largest US radio station group

The largest radio chain in the US saw net profits fall to $220.7m (�124m) between April and June, down from $254m at the same time last year.

Clear Channel said it had cut back on the number of advertisements as a means to attract more listeners.

It also admitted that the advertising marketplace was generally weaker.

Delayed dividend

Clear Channel's turnover fell from $2.49bn to $2.46bn.

The group also announced a retreat from its previous plan to pay a special $1.6bn dividend related to the recent spin-off of its former live entertainment unit.

Clear Channel said on Tuesday that instead of paying the $3 per share special dividend, it would instead return the money to shareholders in the form of share buybacks, a special dividend, or both.

To help achieve this, the company said it would be increasing its share buyback plans by $692m to $1bn over the next year, and that it planned to pay a special dividend in 2006 instead.

Clear Channel's results came in slightly below Wall Street estimates.