Wells Fargo’s Marci Ryvicker noted that the company managed to cut expenses by a factor of 5% — Wells Fargo was expecting something more on the lines of 3% — and that fueled positive EBITDA numbers on essentially flat revenue.
The format changes, in key markets that include San Francisco, Boston, Kansas City and Buffalo, hurt the company in Q1. But according to Ryvicker, they were neutral in Q2, which compared to being a drag is movement in the right direction. Ryvicker said that the new formats should begin to provide a positive effect on revenues during the second half of the year.
The combination of the new formats kicking in, positive impacts from the group’s acquisition of KBLX-FM San Francisco, its deal to broadcast games of NFL’s Buffalo Bills and of course political income suggests revenue gains of about 5% Q3 and 7% Q4.