Posted by chicagomedia.org on July 31, 2008 at 09:46:42:
When CBS Corp. reported on Thursday morning (July 31) that Q2 revenues of $3.39 billion amounted to an increase of 1% from the same quarter in 2007, president and CEO Leslie Moonves dropped this bombshell about the radio division: "We have taken this opportunity to change our portfolio by initiating a plan to divest 50 mid-size market radio stations. By selling selected stations in these markets we can focus on the larger market stations, many of which are showing growth. No other details were revealed about the divestiture.
Meanwhile, CBS also reported that Q2 radio revenues decreased 10% to $416.4 million from $463.4 million for the same prior-year period, which the company said reflected "weakness in the radio advertising market and the impact of radio station divestitures."
Additionally, on a same station basis, radio revenues declined 9% from the second quarter of 2007. Radio OIBDA and operating income decreased 15% to $158.6 million and 16% to $150.7 million, respectively. Radio results included stock-based compensation expense of $5.6 million and $5.0 million respectively.
Commenting on the Q2 results, Moonves said, In a more difficult economic environment, with our local businesses affected by an advertising slowdown, we have taken aggressive cost reduction actions to manage expenses. Since the beginning of the year, well before the current softness in the marketplace, we have been working to rationalize the cost structure in our television, radio and outdoor businesses. When the marketplace comes back, we will be well prepared to capitalize on that upturn.
(R&R)