Cautious optimism but more cost cutting are themes of the day among publicly held broadcast companies right now.
That’s the analysis from Wells Fargo Securities analysts Marci Ryvicker and Timothy Schlock, who commented to investors Wednesday in advance of the latest round of quarterly earnings reports.
“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%),” they stated.
“Cost cuts are also likely to be substantial, resulting in potential beats to the bottom line.”
The analysts expect broadcast company comments this season 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.”