Analyst sees gains for public radio companies in Fall ratings
Total radio listening may have been down in the recently-released Fall 2005 ratings from Arbitron, but Bear Stearns analyst Victor Miller sees good news in the numbers for some of the publicly traded radio companies, including giants Clear Channel and CBS - - although the biggest winner was Radio One. Here's a summary of Miller's analysis.
* Radio Listening Declines in Fall 2005. Arbitron reported overall radio listening decreased in the Fall of 2005 by 1.4% and 1.9% among persons 12+ and 25-54, respectively. Listening declines among persons 25-54 (-1.9%) fell by more than its 5-yr trend (-1.3%) for the 2nd ratings period in a row. Both CCU and CBS demonstrated ratings momentum.
* Less Is More and Spanish-Language Stations Lead to More Listening at CCU. In the 4th ratings book following the implementation of Less Is More, which reduced commercial minutes, CCU posted a weighted ratings increase of 3.1% in the top 50 markets. 8 Spanish-language stations also contributed to the growth. This marks the 6th quarter in a row of weighted ratings gains for CCU.
* "Jack" Continues to Provide Momentum for CBS. For the 2nd quarter in a row, CBS posted a weighted ratings increase (+3.6%). Stations in the Jack / We Play Anything format contributed to 2.3% of the 3.6% weighted increase. Ratings at the Jack formated station in New York City are down year over year, but have begun to show improvement.
* Spanish Ratings Mixed. Fall ratings were again mixed for Spanish broadcasters, with Entravision (+3.8%) and Spanish Broadcasting (+2.3%) up, and Univision down (-1.6%). However, this reflects tough comparisons: over a two year period, the three Spanish-language operators have generated the strongest gains in radio listening.
* Radio One Leads the Pack. Radio One posted the highest weighted ratings increase of any English-language broadcaster (+8.7%), though several other English language operators posted weighted ratings increases as well, including Cox Radio (+4.4%), CBS (+3.6%), Salem's music stations (+3.5%), Cumulus (+3.5%), CCU (+3.1%). Entercom (-0.7%), Citadel (-1.2%) and Emmis (-9.2)% did not fare as well.
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