That’s the case for both the radio group, Lincoln Financial Media, and the parent insurance company. Overall, the company reported a net loss of $506 million for the final quarter of 2008. That dropped net earnings for the full year at Lincoln Financial Group to only $57 million from over $1.2 billion in 2007.
"This quarter’s disappointing results reflect the volatile financial markets and deteriorating economy. We have made prudent decisions regarding capital, liquidity and core earnings to maintain financial flexibility. In recognition of the market environment, we took steps during the fourth quarter and first quarter to reduce run-rate expenses by approximately $75 million and expect to achieve total annualized savings of $125-150 million by the end of 2009," said Dennis R. Glass, President and CEO.
Included in the Q4 loss was a non-cash charge of $166 million, after tax, for the impairment of intangibles primarily related to the company’s media assets. Those are the company’s radio stations in Miami, San Diego, Denver and Atlanta. Lincoln Financial Media sold its three television stations to Raycom for $583 million ad its Charlotte radio stations to Greater Media for $100 million in early 2008 after conducting an auction in late 2007. At the time, the company decided that bids for the other radio stations were not attractive.
For Q4 2008, Lincoln Financial Media had revenues of $19.4 million, down 26.8% from the previous year. Operating expenses rose 8.9% to $14.7 million. For the full year, revenues declined 19.9% to $85.5 million and operating expenses rose 5.8% to $59.8 million.