Radio One's Royster: 95% Chance We'll Sell Some Stations
March 29, 2006 at 12:37 PM (PT)
RADIO ONE EVP/CFO SCOTT ROYSTER told the BANK OF AMERICA's Media, Telecommunications and Entertainment Conference WEDNESDAY that there is a "95% probability" that the company will sell some of its stations. ROYSTER said that the company might sell "non-strategic" properties for an aggregate value of between $100-200 million, although he did not specify markets or stations and indicated that radio remains the primary focus of the company. "At the end of the day," ROYSTER said, "we're a radio company that is looking to transform itself into a more broadbased media company... (but) radio is what butters the bread..."
ROYSTER skipped a planned presentation, noting that most analysts have already seen it, and went straight to a questions-and-answers session in which he noted that the industry needs price increases to promote growth. He noted that second quarter looks better than first quarter; regarding troubles at KKBT (100.3 THE BEAT)/LOS ANGELES, ROYSTER said "we are talking through various strategies for improving the performance at that radio station, but if we were to do something significant it would represent a fairly major change. We want to make sure we get it right... we want to make sure we do the right thing."
Also at the conference, ENTRAVISION's EVP/CFO JOHN DELORENZO said that the company plans to buy radio stations in markets where it owns TV properties and continue to divest in its radio-only markets, but excluded LOS ANGELES in that strategy (ENTRAVISION owns radio stations there but no TV, but DELORENZO said that having radio without TV in that market "doesn't hurt").