Ryvicker: More Cuts Coming
October 29, 2009 at 4:18 AM (PT)
WELLS FARGO analyst MARCI RYVICKER is predicting another round of cost-cutting coming to radio, reports TELEVISIONBROADCAST.COM.
Said RYVICKER, "Based on Q3 results and various pre-announcements reported by some traditional media companies thus far, we expect most pure-play broadcasters to report revenue declines similar to or slightly better than Q2, which ranged from -20 to -15%. Cost cuts are also likely to be substantial, resulting in potential beats to the bottom line. We expect the overall tone of the conference calls to be cautiously optimistic, with specific focus on plans to de-lever, pricing, further cost cutting, retrans, auto, political and the potential for radio royalties."
The comments were made during a projection on CBS, in which RYVICKER said, "Given various positive comments made by management coupled with a healthier-than-expected scatter market, we anticipate CBS to at least meet -- and potentially exceed -- Q3 expectations of 22 cents."