Dial Global Q2 Boosted By WW1 Addition But Loss Widens
August 15, 2012 at 4:28 AM (PT)
DIAL GLOBAL's second-quarter financial report reflects the addition of the former WESTWOOD ONE operations, more than doubling revenue from $21.291 million to $54.654 million, but with costs up 250% to $25.809, net loss widened nearly 400% to $15.147 million (-12 to -27 cents per share). On a pro forma basis, revenue fell from second quarter 2011's $61.390 to $54.654 million, and net loss widened from -15 cents/share to -27 cents/share.
In its SEC filing's recitation of risk factors, the company noted without naming names that the RUSH LIMBAUGH controversy has "significantly impacted" DIAL GLOBAL's business and has led to some advertisers in News-Talk formats pulling ads that ran in proximity to that show and caused some ads to get pulled even though DIAL GLOBAL does not syndicate LIMBAUGH's show.
The company says it has made "meaningful changes to our internal systems and procedures to allow us to better separate our advertisers' ads from certain controversial programming," but warned that "such process has consumed time and resources, and notwithstanding our efforts, certain advertisers have exited News/Talk programming and may not ultimately resume advertising in this area of programming at previous levels, or at all. If we are unable to bring back advertisers into our News/Talk radio programming, this would have an adverse effect on our revenue, which would have an adverse effect on our results of operations."