CKX (CKXE) 8-K CKX, Inc. Reports Second Quarter and Six Month 2009 Results

For Immediate Release:Media contact: Ed Tagliaferri 212 981 5182

CKX, INC. REPORTS SECOND QUARTER AND SIX MONTH 2009 RESULTS

CONFERENCE CALL SCHEDULED TO DISCUSS RESULTS

NEW YORK, August 10, 2009 – CKX, Inc. (NASDAQ: CKXE) today reported financial results for its second quarter and six months ended June 30, 2009.

For the six months ended June 30, 2009, revenue increased to $161.0 million from $153.7 million for the comparable period in 2008. Operating income declined to $34.8 million from $45.3 million in 2008. The 2009 results include a non-cash swing of $6.0 million in foreign exchange losses, as well as $5.8 million in unusual one-time costs.

Commenting on the results, Robert F.X. Sillerman, Chairman and CEO said, “I am pleased at where the company sits at this time. The predictability of our core business permitted us to more than double our development budget for 2009. WithAmerican Idolincreasing its lead among the key demographics to unprecedented heights, withSo You Think You Can Dancebeginning an additional season in September of this year, with attendance at Graceland running ahead of last year in this quarter and with the Las Vegas-based Cirque du Soleil show on track to open at the end of this year, the base of our business continues to be solid. With others cutting back on development, we anticipate greater opportunities in both Television and Internet opportunities.”

Simon Fuller, CEO of 19 Entertainment commented, “I could not be more excited by the diversity and quality of our forthcoming projects. With the decision to invest more time and resource into a strong development programme, this initiative is now beginning to bear fruit. We are negotiating new TV shows in reality, comedy, drama and music, including an intriguing multimedia show that will push the boundaries of television, the Internet and live events. With our Sport, Fashion, Music and online presence also growing, 19 and CKX have more new initiatives than ever before.”

Results for the Three Months Ended June 30, 2009

Revenue in the second quarter of 2009 declined to $79.5 million from $88.5 million for the second quarter of 2008 primarily due to reduced revenue forAmerican Idol. The decrease in revenue attributable toAmerican Idolwas due to a decrease in the number of hours broadcast in the quarter as compared to the prior year, reduced foreign syndication revenue, lower ratings bonus and weaker on and off air sponsorship revenue resulting from the global recession. Revenue was flat at the Presley Business, as an increase in attendance over the prior year offset a small decrease in licensing revenue as a result of general declines in consumer spending amid the economic downturn. Revenue declined at the Ali Business due to fewer memorabilia signings.

Operating income before depreciation, amortization and non-cash stock compensation (“OIBDAN”) declined to $16.2 million for the second quarter of 2009 from $31.5 million for the second quarter of 2008. The decrease in OIBDAN as compared to the prior year period reflects the decline in revenue described above, $0.7 million of costs incurred with respect to a potential acquisition, $5.7 million in non-cash foreign exchange losses due to the weakened U.S. dollar, $0.8 million in incremental payroll-related taxes incurred due to the redemption of redeemable restricted common stock, $0.5 million in costs related to the terminated merger and a $0.4 million increase in development spending for new projects. OIBDAN in the second quarter of 2008 included $1.1 million of merger and distribution-related costs and foreign exchange losses of $0.1 million. Adjusting for foreign exchange losses, acquisition-related and merger and distribution-related costs and the payroll taxes related to the redeemable restricted common stock redemption, OIBDAN declined to $23.9 million in the second quarter of 2009 from $32.7 million for the second quarter of 2008.

Net income attributable to CKX, Inc. was $4.0 million, a decrease of $7.9 million from the second quarter of 2008 and diluted income per common share of $0.05 represented a decrease of $0.07 from the second quarter of 2008.

Operating income was $11.2 million in the second quarter of 2009 compared to $25.2 million in the second quarter of 2008.

Results for the Six Months Ended June 30, 2009

Revenue for the Company grew to $161.0 million in the six months from $153.7 million for the same period in 2008. Revenue was flat at 19 Entertainment as new television programming offset declines inAmerican Idol. The decrease in revenue attributable toAmerican Idolwas due to reduced foreign syndication revenue, lower ratings bonus and weaker on and off air sponsorship revenue resulting from the global recession. Revenue at the Presley Business and the Ali Business included $9.0 million and $1.0 million, respectively, of non-recurring revenue from the terminated license agreements to develop real estate projects around these brands. Excluding the non-recurring revenue, revenue was flat at the Presley Business as an increase in attendance over the prior year offset a small decrease in licensing revenue as a result of general declines in consumer spending amid the economic downturn. Excluding the non-recurring revenue, revenue declined at the Ali Business due to fewer memorabilia signings and a slight decline in licensing revenue.

Operating income before depreciation, amortization and non-cash stock compensation (“OIBDAN”) declined to $44.5 million for the six months ended June 30, 2009 from $57.5 million for the prior year period. The decrease in OIBDAN as compared to the prior year’s period reflects the recognition of the $10.0 million in fees from the terminated license agreements, which was offset by the decline in recurring revenue described above, a $1.4 million restructuring charge at the Ali Business, $2.2 million of costs incurred with respect to a potential acquisition, the write-off of $0.9 million of previously capitalized costs related to the proposed re-development of Graceland, $5.8 million in non-cash foreign exchange losses due to the weakened U.S. dollar, $0.8 million in incremental payroll-related taxes incurred due to the redemption of redeemable restricted common stock, $0.5 million in costs related to the terminated merger and a $0.9 million increase in development spending for new projects. OIBDAN in the first six months of 2008 included $1.7 million of merger and distribution-related costs and foreign currency exchange gains of $0.2 million. Adjusting for the non-recurring revenue, the write-down of the capitalized costs, the foreign exchange losses, the payroll taxes related to the redeemable restricted common stock redemption and the acquisition-related and merger and distribution-related costs, OBIDAN declined to $46.1 million in the first six months of 2009 from $59.0 million for the same period in 2008.

Net income attributable to CKX, Inc. was $16.1 million, a decrease of $7.0 million from the first six months of 2008, and diluted income per common share of $0.17 represented a decrease of $0.07 from the first half of 2008.

Operating income was $34.8 million for the first half of 2009 compared to $45.3 million in the 2008 period.

1

Segment Results

The following table summarizes segment operating results for the three months ended June 30, 2009 and 2008 (in millions):

	June 30,			June 30,
	2009			2008			Change
Revenue
19 Entertainment	$	64.6		$	72.5			-10.9	%
Presley Business		14.5			14.6			-0.8	%
Ali Business		0.4			1.4			-74.0	%
Total	$	79.5		$	88.5			-10.1	%
	June 30,			June 30,
		2009			2008		Change
OIBDAN
19 Entertainment (1)	$	17.4		$	30.1			-42.3	%
Presley Business		5.5			5.7			-4.6	%
Ali Business		0.0			0.3			-96.8	%
Corporate		(6.7	)		(4.6	)		45.89	%
Total	$	16.2		$	31.5			-48.7	%
	June 30,			June 30,
		2009			2008		Change
Operating Income
19 Entertainment (1)	$	14.1		$	25.3			-44.3	%
Presley Business		4.2			4.4			-4.9	%
Ali Business		0.0			0.3			-99.7	%
Corporate (2)		(7.1	)		(4.8	)		47.3	%
Total	$	11.2		$	25.2			-55.6	%

(1) 2009 and 2008 results include foreign exchange losses of $5.7 million and $0.1 million, respectively.

(2) 2009 results include $0.7 million of acquisition-related costs in accordance with a new accounting standard and $0.5 million of merger and distribution-related costs. 2008 includes $1.1 million of merger and distribution-related costs.

2

The following table summarizes segment operating results for the six months ended June 30, 2009 and 2008 (in millions):

	June 30,			June 30,
	2009			2008			Change
Revenue
19 Entertainment	$	125.9		$	126.2			-0.3	%
Presley Business		33.1			25.0			32.0	%
Ali Business		2.0			2.5			-19.7	%
Total	$	161.0		$	153.7			4.7	%
	June 30,			June 30,
		2009			2008		Change
OIBDAN
19 Entertainment (1)	$	41.3		$	58.6			-29.6	%
Presley Business		15.7			7.8			100.8	%
Ali Business (2)		(0.3	)		0.6			-144.9	%
Corporate (3)		(12.2	)		(9.5	)		28.90	%
Total	$	44.5		$	57.5			-22.6	%
	June 30,			June 30,
		2009			2008		Change
Operating Income (Loss)
19 Entertainment (1)	$	34.7		$	49.4			-29.7	%
Presley Business		13.2			5.3			148.5	%
Ali Business (2)		(0.3	)		0.6			-153.6	%
Corporate (3)		(12.8	)		(10.0	)		27.8	%
Total	$	34.8		$	45.3			-23.2	%

(1) 2009 results include foreign exchange losses of $5.8 million. 2008 OIBDAN includes $0.2 million in foreign exchange gains.

(2) 2009 results include severance costs of $1.4 million at the Ali Business due to a restructuring of the business.

(3) 2009 results include $2.2 million of acquisition-related costs in accordance with a new accounting standard and $0.5 million of merger and distribution-related costs. 2008 includes $1.7 million of costs relating to merger and distribution-related costs.

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Use of Operating Income before Depreciation, Amortization and Non-cash Stock Compensation

We evaluate our operating performance based on several factors, including a financial measure of operating income before non-cash depreciation of tangible assets and non-cash amortization of intangible assets, and non-cash compensation and other non-cash charges, such as charges for impairment of intangible assets (which we refer to as “OIBDAN”). The Company considers OIBDAN to be an important indicator of the operational strengths and performance of our businesses and the critical measure the chief operating decision maker (CEO) uses to manage and evaluate our businesses, including the ability to provide cash flows to service debt. However, a limitation of the use of OIBDAN as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue in our businesses or stock-based compensation expense. Accordingly, OIBDAN should be considered in addition to, not as a substitute for, operating income, net income and other measures of financial performance reported in accordance with US GAAP as OIBDAN is not a GAAP equivalent measurement.

The following table reconciles consolidated OIBDAN to consolidated operating income under U.S. GAAP (in millions) for the three months ended June 30, 2009 and 2008:

	June 30,			June 30,
	2009			2008
OIBDAN	$	16.2		$	31.5
Depreciation and amortization		(4.6	)		(5.5	)
Non-cash compensation		(0.4	)		(0.8	)
Operating income	$	11.2		$	25.2

The following table reconciles consolidated OIBDAN to consolidated operating income under U.S. GAAP (in millions) for the six months ended June 30, 2009 and 2008:

	June 30,			June 30,
	2009			2008
OIBDAN	$	44.5		$	57.5
Depreciation and amortization		(9.0	)		(11.1	)
Non-cash compensation		(0.7	)		(1.1	)
Operating income	$	34.8		$	45.3

Cash and Borrowing

The Company had total cash on hand of $72.9 million as of June 30, 2009. Outstanding debt at June 30, 2009 totaled $101.4 million including the current portion of $0.8 million.

Form 10-Q Filing

Additional information concerning the Company’s first quarter results of operations and financial position is included in the Company’s Form 10-Q for the quarter ended June 30, 2009 which was filed today with the Securities and Exchange Commission. A copy of the Company’s 10-Q filing is available on our website atwww.ckx.com.

Conference Call

Robert F.X. Sillerman, Chairman and Chief Executive Officer, and Thomas P. Benson, Executive Vice President and Chief Financial Officer, will be hosting a conference call for investors today at 10:00 a.m. EDT to discuss the quarterly results. The conference call numbers are:

719-457-2715 (International)
888-617-5714 (United States)

Those interested in listening to the conference call live via the Internet may do so by visiting the Company’s Investor Relations web site athttp://ir.ckx.com. To listen to the live call, please go to the web site fifteen minutes prior to its start to register, download, and install the necessary audio software.

An audio replay of the conference call will also be available after the call on the Company’s Investor Relations website.

About CKX, Inc.

CKX, Inc. is engaged in the ownership, development and commercial utilization of entertainment content. To date, the Company has focused on acquiring globally recognized entertainment content and related assets, including the rights to the name, image and likeness of Elvis Presley, the operations of Graceland, the rights to the name, image and likeness of Muhammad Ali and proprietary rights to the IDOLS television brand, including theAmerican Idolseries in the United States and local adaptations of the IDOLS television show format which, collectively, air in more than 100 countries. For more information about CKX, Inc., visit its corporate website atwww.ckx.com.

Forward Looking Statements

In addition to historical information, this document contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. You can generally identify forward-looking statements as statements containing the words “believe,” “expect,” “will,” “anticipate,” “intend,” “estimate,” “project,” “assume” or other similar expressions, although not all forward-looking statements contain these identifying words. All statements in this Annual Report regarding our future strategy, future operations, projected financial position, estimated future revenue, projected costs, future prospects, and results that might be obtained by pursuing management’s current plans and objectives are forward-looking statements. You should not place undue reliance on our forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond our control. Our forward-looking statements are based on the information currently available to us and speak only as of the date on which this Annual Report was filed with the Securities and Exchange Commission (“SEC”). We expressly disclaim any obligation to issue any updates or revisions to our forward-looking statements, even if subsequent events cause our expectations to change regarding the matters discussed in those statements. Over time, our actual results, performance or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference might be significant and materially adverse to our stockholders.

CKX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)

	June 30,			December 31,
	2009			2008
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	72,904		$	101,895
Receivables, net of allowance for doubtful accounts of $923 at June 30, 2009 and $803 at December 31, 2008		70,641			37,085
Due from related party		55			274
Inventories, net of allowance for obsolescence of $725 at June 30, 2009 and $649 at December 31, 2008		1,984			1,988
Prepaid expenses and other current assets		9,328			8,119
Deferred tax assets		3,020			4,941
Total current assets		157,932			154,302
Property and equipment — net		50,333			47,818
Receivables		2,512			3,267
Loans to related parties		1,766			1,765
Other assets		25,695			26,797
Goodwill		120,170			108,771
Other intangible assets — net		123,936			127,403
Deferred tax assets		4,300			5,938
TOTAL ASSETS	$	486,644		$	476,061
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	24,323		$	19,648
Accrued expenses		25,394			22,373
Current portion of long-term debt		773			489
Income taxes payable		6,011			5,526
Deferred revenue		14,801			30,745
Total current liabilities		71,302			78,781
Long-term liabilities:
Long-term debt		100,656			101,429
Deferred revenue		2,875			3,515
Other long-term liabilities		3,215			2,850
Deferred tax liabilities		21,030			23,744
Total liabilities		199,078			210,319
Redeemable restricted common stock — 534,082 shares outstanding at June 30, 2009 and 1,672,170 shares outstanding at December 31, 2008		7,347			23,002
Commitments and contingencies
CKX, Inc. stockholders’ equity:
Preferred stock, $.01 par value, authorized 75,000,000 shares:
Series B — 1,491,817 shares outstanding		22,825			22,825
Series C — 1 share outstanding		—			—
Common stock, $0.01 par value: authorized 200,000,000 shares, 96,811,040 shares issued at June 30, 2009 and 95,634,685 issued at December 31, 2008		968			956
Additional paid-in-capital		393,930			377,617
Accumulated deficit		(90,548	)		(106,619	)
Common stock in treasury — 4,477,438 shares at June 30, 2009 and 3,339,350 shares at December 31, 2008		(22,647	)		(7,647	)
Accumulated other comprehensive income (loss)		(29,239	)		(49,671	)
CKX, Inc. stockholders’ equity		275,289			237,461
Noncontrolling interests		4,930			5,279
Total equity		280,219			242,740
TOTAL LIABILITIES AND EQUITY	$	486,644		$	476,061

CKX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(amounts in thousands, except share and per share data)

	Three Months			Three Months
	Ended			Ended
	June 30, 2009			June 30, 2008
Revenue	$	79,533		$	88,510
Operating expenses:
Cost of sales		32,904			33,310
Selling, general and administrative expenses		18,210			19,656
Corporate expenses		5,734			3,704
Depreciation and amortization		4,560			5,457
Merger and distribution-related costs		525			1,092
Acquisition-related costs		696			—
Other expense		5,712			58
Total operating expenses		68,341			63,277
Operating income		11,192			25,233
Interest income		100			327
Interest expense		(906	)		(1,424	)
Income before income taxes and equity in earnings (losses) of affiliates		10,386			24,136
Income tax expense		5,035			11,515
Income before equity in earnings (losses)of affiliates		5,351			12,621
Equity in earnings (losses) of affiliates		(321	)		445
Net income		5,030			13,066
Dividends on preferred stock		(456	)		(456	)
Net income available to CKX, Inc.		4,574			12,610
Less: Net income attributable to noncontrolling interests		(566	)		(678	)
Net income attributable to CKX, Inc.	$	4,008		$	11,932
Income per share:
Basic income per share	$	0.05		$	0.12
Diluted income per share	$	0.05		$	0.12
Average number of common shares outstanding:
Basic		93,702,530			97,045,279
Diluted		93,702,531			97,090,538

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CKX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(amounts in thousands, except share and per share data)

	Six Months			Six Months
	Ended			Ended
	June 30, 2009			June 30, 2008
Revenue	$	161,039		$	153,747
Operating expenses:
Cost of sales		61,214			50,381
Selling, general and administrative expenses		37,552			37,160
Corporate expenses		9,909			8,301
Depreciation and amortization		8,998			11,089
Merger and distribution-related costs		525			1,683
Acquisition-related costs		2,233			—
Other expense (income)		5,840			(159	)
Total operating expenses		126,271			108,455
Operating income		34,768			45,292
Interest income		203			1,105
Interest expense		(1,956	)		(3,041	)
Income before income taxes and equity in earnings (losses) of affiliates		33,015			43,356
Income tax expense		14,329			19,880
Income before equity in earnings (losses) of affiliates		18,686			23,476
Equity in earnings (losses) of affiliates		(259	)		1,657
Net income		18,427			25,133
Dividends on preferred stock		(912	)		(912	)
Net income available to CKX, Inc.		17,515			24,221
Less: Net income attributable to noncontrolling interests		(1,444	)		(1,075	)
Net income attributable to CKX, Inc.	$	16,071		$	23,146
Basic income per share:
Income attributable to CKX, Inc. before preferred dividends	$	0.18		$	0.24
Dividends on preferred stock		(0.01	)		—
Basic income per share	$	0.17		$	0.24
Diluted income per share:
Income attributable to CKX, Inc. before dividends on preferred stock	$	0.18		$	0.24
Dividends on preferred stock		(0.01	)		—
Diluted income per share	$	0.17		$	0.24
Average number of common shares outstanding:
Basic		93,749,330			97,036,692
Diluted		93,827,784			97,085,647

CKX, INC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(amounts in thousands)

	Six Months			Six Months
	Ended			Ended
	June 30, 2009			June 30, 2008
Cash flows from operating activities:
Net income available to CKX, Inc.	$	17,515		$	24,221
Adjustments to reconcile net income available to CKX, Inc. to net cash (used in) provided by operating activities:
Depreciation and amortization		8,998			11,089
Dividends on preferred stock		912			912
Write-off of deferred costs		874			—
Unrealized foreign currency gains (losses)		6,018			(72	)
Share-based payments		752			1,124
Equity in earnings (losses) of affiliates, net of cash received		259			(474	)
Deferred income taxes		845			(857	)
Non-cash interest expense		383			331
Provision for inventory and accounts receivable allowance		240			(34	)
Changes in operating assets and liabilities:
Receivables		(33,935	)		(40,805	)
Accounts payable and accrued expenses		7,551			9,053
Deferred revenue		(16,993	)		11,326
Income taxes payable		485			8,981
Other		2,079			3,076
Net cash (used in) provided by operating activities		(4,017	)		27,871
Cash flows from investing activities:
Purchases of property and equipment		(4,838	)		(3,990	)
Investment in Cirque du Soleil partnership		(2,219	)		—
Net cash used in investing activities		(7,057	)		(3,990	)
Cash flows from financing activities:
Purchase of redeemable restricted common stock		(15,000	)		—
Distributions to noncontrolling interest shareholders		(1,750	)		(850	)
Principal payments on debt		(489	)		(526	)
Dividends paid on preferred stock		(912	)		(912	)
Net cash used in financing activities		(18,151	)		(2,288	)
Effect of exchange rate changes on cash and cash equivalents		234			(32	)
Net (decrease) increase in cash and cash equivalents		(28,991	)		21,561
Cash and cash equivalents — beginning of period		101,895			50,947
Cash and cash equivalents — end of period	$	72,904		$	72,508
Supplemental cash flow data:
Cash paid during the period for:
Interest	$	1,312		$	2,636
Income taxes		13,983			11,736

Supplemental Cash Flow Information
The Company had the following non-cash investing and financing activities in the six months ended June 30, 2009 (in thousands):
Accrued but unpaid Series B Convertible Preferred Stock Dividends	$	456
Accrued but unpaid investment in Cirque du Soleil partnership	$	3,831
The Company had the following non-cash investing and financing activities in the six months ended June 30, 2008 (in thousands):
Distribution of final 2% ownership interest in FX Real Estate and Entertainment Inc.	$	6,175
Accrued but unpaid Series B Convertible Preferred Stock Dividends		456

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