Westwood One Posts Loss, 16.7% Revenue Decline In Q2
August 10, 2009 at 2:35 PM (PT)
WESTWOOD ONE second-quarter revenue fell 16.7% to $83.7 million, blamed on the economic downturn and the continued decline in advertising spending. Network radio revenue dropped 14.9% to $40.2 million due to the decline in advertising spending in news, talk and sports programming, particularly from automotive advertisers.
METRO TRAFFIC revenue fell 18.3% to $43.5 million due to the weak local advertising marketplace. Operating expenses for the quarter decreased 15.3% to $72.3 million, with the METRO "re-engineering" and other job cuts taking effect. The company showed a net loss of $9.9 million for the quarter (13 cents/diluted share) as compared to last year's net loss of $199.7 million ($1.98/diluted share), which included a goodwill impairment charge of $206.1 million; without the charge, last year's net income would have been $6.4 million.
"WESYWOOD ONE's turnaround continued to gain traction in the second quarter of 2009," said Pres./CFO ROD SHERWOOD. "Our adjusted EBITDA improved by approximately $16 million versus the first quarter of 2009, primarily due to our cost reduction initiatives. With the Company’s new capital structure in place as a result of our recent refinancing, and with our current cost reduction efforts largely implemented, our #1 strategic initiative is to drive revenue across all businesses with branded content that continues to lead the industry in quality and excitement. Quality content and supporting marketing programs will attract the audiences our affiliate partners and advertising clients need to grow their businesses."