With only six television stations in five markets, ACME Communications is far from the top of the television group heap. None are big four affiliates, and four are in a JSA/SSA with another group. The group suffered a 1% loss in net revenue Q2, despite cutting expenses by a factor of 2%.
The drop in net revenues (from continuing operations) was based on a total take of $6.8M, down $100K from Q2 2009. Operating costs fell to $7.7M, also about a $100K decrease.
The group operates CW affiliates in Dayton OH, Green Bay-Appleton WI, Madison WI and Knoxville TN, and has both a CW and an MNT affiliate in Albuqueque-Santa Fe. The LIN JSA/SSA agreements, which grant LIN a purchase option, regulations permitting, are in all of the markets except Madison and Knoxville.
ACME’s President and CEO Doug Gealy said, “Market conditions are improving and we are optimistic that we will be able to recapture lost shares as the market strengthens, especially given the anticipated strong political demand in the back half of this year. While we are still in transition related to our joint sales agreements and shared services agreements with LIN Media, which is going smoothly, we expect to begin showing the benefits of those arrangements starting in the third quarter. We also continue to look for opportunities to replicate the LIN deal, or look for other alternatives to unlock shareholder value, in our remaining assets.”