Westwood One Q3 Income Falls
November 9, 2006 at 5:58 AM (PT)
WESTWOOD ONE reported reported that its third-quarter income fell to $10.5 million (12 cents per share) from $20.1 million (22 cents), a penny ahead of the per-share expectation of analysts polled by THOMSON FINANCIAL.
The company's Q3 net revenue declined 15.3%, to $114.3 million from $134.9 million. WESTWOOD ONE attributes the decrease in revenue to adverse market conditions and a reduced demand for its products and services. The company's Q3 operating expenses declined 7.1%.
For Q4, WESTWOOD ONE expects double-digit declines in revenues and low single-digit increases in operating expenses, which will result in double-digit declines in operating income before depreciation and amortization.
The company's board of directors declared a cash dividend of 2 cents per share for every issued and outstanding share of common stock and 16 cents per share for every issued and outstanding share of class B stock on NOVEMBER 7. The dividends are payable on DECEMBER 15 to stockholders of record at the close of business on NOVEMBER 21.
Strategic Review Committee Formed
Additionally, WESTWOOD ONE announced today that its board of directors has established a Strategic Review Committee comprised of independent directors to evaluate means by which WW1 may be able to enhance shareholder value.
The Committee’s principal task at this time is to seek to modify and extend the company's various agreements with CBS RADIO INC. WESTWOOD ONE's principal agreements with CBS RADIO currently expire on MARCH 31, 2009.