Revenues Off, Income Up For Q1 At WW1
May 8, 2007 at 6:42 AM (PT)
On the heels of the NEW YORK POST report suggesting that the company is for sale, WESTWOOD ONE reported first quarter revenues falling 9.4% to $109.4 million, attributed to "adverse market conditions, a reduced demand for the Company's products and services, and increased competition," with national ad sales off 10.7% (due in part to 2006's numbers getting a boost from the WINTER OLYMPICS) and local/regional sales off 7.9%. Net income, on the other hand, rose from a loss of $3.5 million to a gain of $700,000 (-4 to +1 cent/basic and diluted share).
The company has also discontinued dividend payments as it completes negotiation of its revised deal with CBS RADIO.
For the second quarter of 2007, WW1 expects low double digit declines in revenue and low to mid single digit declines in operating expenses, resulting in double digit declines in operating income before depreciation and amortization.