Media Services Group Issues 2008 Projections
January 15, 2008 at 11:39 AM (PT)
MEDIA SERVICES GROUP has issued its 2008 assessment of the radio and TV industry, projecting that small- to medium-market radio properties will trade at 7 to 9 times broadcast cash flow and larger market stations will trade at 9 to 11 times cash flow. The report was released at the company's annual meeting in FORT LAUDERDALE.
"We think the industry is re-setting pricing, and expect the year to be record setting in terms of station-trading volume. The first half of the year will be affected by capital constraints, which we expect to loosen in the second half," said Managing Dir. GEORGE REED. "The reports from our people at the meeting indicate that as the year progresses, market conditions will improve from current levels. We expect an unprecedented volume of stations to change hands by year-end, the most since the passage of the Telecommunications Act in 1996."