Westwood One Takes A Hit In 1Q '08
May 7, 2008 at 2:15 PM (PT)
Like most radio entities in the teeth of the current recession, WESTWOOD ONE had a tough first-quarter '08. Revenue for 1Q decreased $7.4 million, or 6.5%, to $106.6 million compared with $114.0 million in 2006. The decrease in revenue is primarily attributable to lower audience and inventory levels, a reduction in the size of our sales force and increased competition. Revenue declined in both the National and Local/regional areas, with National falling 2.4% and Local/regional diving 11.2%.
Adjusted EBITDA for the first quarter of 2008 was $11.1 million compared with $15.4 million in 2007, a decrease of $4.3 million, or 28.2%. The decline was principally attributable to our decrease in revenue, partially offset by a slight reduction in operating costs, attributable to the cancellation of certain contracts in last year's first quarter and lower commission and bad debt expense.
"We have just begun to make the necessary adjustments to and investments in our business to position us for growth," WESTWOOD ONE Pres./CEO, TOM BEUSSE stated. "With the recent addition to our management ranks of Chief Revenue Officer ANDREW HERSAM, we expect to significantly improve our sales efforts as well as rebuild and reorganize our sales staff throughout this year. The radio network marketplace continues to show growth in the current year to date period despite the weakness in the local and national marketplace. While we are still trailing the market growth, our bookings continue to show low to mid-single digit improvement over last year. In addition, as a result of the consummation of the new CBS arrangement, we expect to see growth in the national audience that we sell to advertisers."