Westwood One Suffers Double-Digit Declines In '08, 4Q
March 16, 2009 at 2:01 PM (PT)
WESTWOOD ONE, INC. reported a 10.4%.decline in revenue for 2008 after a 14.5% drop in the fourth quarter. Revenue for the three months ended DECEMBER 31st, 2008 was $101.1 million for the entire year, compared to $118.3 million in the same period of 2007. WW1 generated revenue of $404.4 million in 2009 compared to $451.4 million in 2007.
Adjusted EBITDA for 2008 was $39.2 million as compared with $97.4 million in 2007, a decrease of $58.2 million, or 59.8%. The decrease was primarily clamed on the revenue decline and also reflected the timing of cost reduction actions, particularly in METRO TRAFFIC. Adjusted EBITDA for 4Q '08 was $6.0 million compared with $27.2 million
in 4Q '07. The decrease is principally attributable to lower revenue in both segments of the business.
The declines reflect "the increased severity of the recession ... primarily due to the current economic downturn which accelerated in the fourth quarter of 2008 and primarily impacted local advertising."
"WESTWOOD ONE achieved major milestones in its turnaround plan in 2008 and early this year," WESTWOOD ONE Pres./CFO ROD SHERWOOD said. "The milestones included negotiating an agreement in principle with our lenders to refinance the Company’s outstanding debt, renewing programming deals with powerful partners like the NFL and the MASTERS TOURNAMENT, launching new, high-profile programming like The FRED THOMPSON Show, and entering into an exclusive partnership with TrafficLand, a leading-edge technology company in the traffic business. This has positioned us to focus more intently on generating revenue and reducing operating costs in the face of the soft economic environment."