Westwood One Still Down in Q2

Although Westwood One, Inc. had another down quarter ending June 30, it had warned Wall Street in July. WWO President/CEO Shane Coppola said despite softness in the first half of the year, the company predicts “modest improvements” in the second half of the year, and the company remains well positioned for the long-term.
Net revenues for the second quarter of 2003 were $132.7 million compared with $140.8 million for the second quarter of 2002. Coppola cited the softening of advertising sales for the dip; the decline began in the first quarter of 2003 continued to adversely affect second quarter revenues.
Operating income for the second quarter of 2003 was $41.7 million compared with $49.7 million in the second quarter of 2002. The decline in operating income was solely attributable to the lower second quarter revenue.
Operating expenses for the period were held flat as additional costs for new program offerings were offset by reductions in employee related expenses.
Net income for the second quarter of 2003 was $24.3 million compared with $30.5 million in the second quarter of 2002.
Coppola said cost controls, in addition to modest quarterly improvement would enable WWO “to return to delivering solid quarterly results.” Capital expenditures in the second quarter of 2003 were $1.3 million compared with $1.6 million in the second quarter of 2002.