Westwood One Had A Tough 2007
March 12, 2008 at 1:43 PM (PT)
As expected, WESTWOOD ONE took it on the chin financially in 2007, as it just reported losses in total revenue as well as the bottom line. Net revenue for the year was $24.4 million, which actually pales in comparison to a 2006 net loss of $469.5 million.
"We completed the year poised to stem the decline in revenue and Adjusted EBITDA we have experienced over the last several years." WESTWOOD ONE Pres./CEO TOM BEUSSE stated. "The recently completed long-term agreement with CBS and the capital infusion and commitment we just received from GORES will allow us to make targeted investments in our business which will fuel revenue growth in the second half of 2008 and beyond. These investments will put us in a position to compete more effectively in all our businesses, some of which are in growing segments of media."
Revenue for 2007 decreased 11.9% to $451.4 million compared with $512.1 million in 2006. National revenue declined 11.1% and Local/regional revenue decreased 12.5%. Adjusted EBITDA for 2007, defined as operating income plus depreciation and amortization, special charges, and non-cash stock-based compensation and goodwill impairment, was $97.4 million compared with $114.6 million in 2006, a decrease of $17.2 million, or 15.0%.