Revs Down Almost 11% For Westwood One
November 11, 2008 at 5:26 AM (PT)
WESTWOOD ONE has reported its operating results for its third quarter ended SEPTEMBER 30th, 2008.
Revenue for the third quarter of 2008 was $96.3 million compared to $108.1 million in the third quarter of 2007, a decrease of 10.9%. WESTWOOD reported the decrease is primarily due to the soft economy in the third quarter, which particularly impacted local advertising. Local/Regional revenue declined 16.6%, primarily driven by reduced advertising spending in the automotive, banking and financial services and real estate categories. National revenue declined 4.3% due to lower advertiser demand.
Adjusted EBITDA for the third quarter, defined as operating income (loss) plus depreciation and amortization, special charges, restructuring charges, and non-cash stock-based compensation, was $8.1 million compared with $28.1 million in the third quarter of 2007.
Operating expenses were higher due to increased station compensation, personnel expenses, and costs related to the Olympics.
"2008 was the year of developing and implementing a turnaround plan for WESTWOOD ONE," said Pres./CFO ROD SHERWOOD. "The actions are beginning to produce increasing traction and momentum despite the soft economic environment. We are taking aggressive steps to drive revenue improvement initiatives, reduce costs and restructure our debt to give the Company increased financial flexibility going forward."