Westwood One Reports Q2 Revenue, Income Rise
August 15, 2011 at 1:24 PM (PT)
WESTWOOD ONE second quarter 2011 revenue rose 1.8% to $40.8 million, credited to increased ad revenue from news programming, partially offset by decreased ad revenue from other programming. Net income increased $19.4 million to $14.0 million, primarily due, the company said, to the sale of METRO TRAFFIC on APRIL 29th, resulting in a $19.3 million gain.
"Our revenue was up slightly in the midst of slower than expected growth in the Network radio industry, and the seasonal absence of major sports programming in the second quarter," said President ROD SHERWOOD. "We continued to pursue new opportunities in programming and distribution by launching Rocsi on the Radio with the star of BET's hit TV program, 106TH AND PARK, and by increasing distribution for our DENNIS MILLER show and our suite of RICK DEES programming. In addition, we launched digital and social media extensions of our new talk programming, as well as digital distribution of the DENNIS MILLER Show, and digital video distribution of LOVELINE with Dr. DREW PINSKY and MIKE CATHERWOOD."
"The most significant event of the second quarter was the sale of our METRO TRAFFIC business to CLEAR CHANNEL," said SHERWOOD. "This transaction reduced the Company's senior debt by approximately $104.0 million, strengthened our balance sheet, and helped position the Company for future growth. Since that time, we have continued to expand our programming assets, renew key partnerships, invest in our digital business and our IT infrastructure, and build new alliances with affiliates and advertisers and their agencies."
The company said it is pacing ahead for the second half of 2011 and that while the NFL lockout is over, since the agreement came midway into third quarter, some advertisers may have channeled revenue into other properties for SEPTEMBER. WESTWOOD ONE announced a merger with DIAL GLOBAL that it expects to close in fourth quarter 2011.