Westwood One Takes A Hit In 2Q '08
August 7, 2008 at 2:53 PM (PT)
It was a tough second quarter '08 for syndicator WESTWOOD ONE, as revenues fell 9.6% to $100.4 million, due to a soft economy, weak local and regional advertising, and competition. A 16.8% drop in local and regional business offset smaller gains in national revenue.
All told WW1 suffered an operating loss of $195.6 million. Its net loss in Q2 was $199.7 million ($1.98 per share), compared to net income of $6.9 million (8 cents) a year ago. Adjusted EBITDA was $14.1 million, down 47% from $26.6 million. Free cash flow was down 49.5 percent to $8 million.
Calling 2008 an "important transition year for our newly independent company," WESTWOOD ONE Pres./CEO TOM BEUSSE stated, "Recent revenue trends have been softer than expected due to a weak national economy and a decrease in radio advertising spending. During the second quarter, the difficult business environment negatively impacted revenue and put downward pressure on adjusted EBITDA, and these conditions are expected to continue in the near term."