Westwood One Revenues Up For Q4 And Full-Year 2010
April 13, 2011 at 5:00 AM (PT)
WESTWOOD ONE has reported operating results for the full year and fourth quarter 2010. As reflected in its financial statements, WESTWOOD ONE is organized into two business segments: Network Radio and Metro Traffic. Network Radio distributes news, sports, music, talk and entertainment programming to approximately 5,000 radio stations. Metro Traffic consists of Metro Traffic Radio, which produces and distributes traffic and other local information reports to over 2,250 radio stations, and Metro Television, which produces and distributes such reports to approximately 182 television stations.
WESTWOOD ONE's fourth-quarter revenue increased $6 million, or 6.5%, to $98.3 million from $92.3 million in 2009. Revenue for the full year 2010 increased $22.2 million, or 6.5%, to $362.5 million compared to $340.3 million in 2009.
"Our fourth quarter and year-end revenue increases reflect our strategy of growing our radio and digital business by launching new programming, expanding our distribution, renewing key content partnerships, and investing in our sales force to support our revenue structure," said WW1 Pres. ROD SHERWOOD. "We saw revenue growth in Network Radio from our premium sports partnerships, including NFL and NCAA football, and from our music and entertainment programming. Metro Traffic Radio had higher revenue in key advertising categories of financial services, retail, automotive and restaurants. Our fourth-quarter revenue growth was offset by declines in Metro Television revenue, primarily due to lower ratings and audience levels. We have restructured the television business in the first quarter of 2011, and anticipate that performance will improve for the full year."
Recently WESTWOOD ONE increased its operating and financial flexibility, and reduced its financial risk, by easing its debt leverage covenants with its lenders. In addition, on FEBRUARY 28th, WESTWOOD ONE obtained $10 million in additional liquidity when GORES purchased additional shares of common stock of WESTWOOD ONE.
The company wrote in its outlook, they expect continued growth. "Analysts are predicting modest growth for the overall radio industry in 2011, with revenue growth forecasts ranging from low single digits of 1.3% (MAGNA) to 3.7% (BIA/KELSEY) or 4.0% (JIM BOYLE, GILFORD SECURITIES)."
"WESTWOOD ONE is optimistic that recent investments in new programming, renewal of key partnerships in Network Radio, and increased distribution in Metro Traffic, coupled with investments in the salesforces of both Network Radio and Metro Traffic, will help increase revenues for the Company for the full year 2011," they concluded.