Westwood lowers Q1 expectations

Saying that war jitters have held down ad spending, Westwood One (N:WON) told Wall Street late yesterday (3/18) that Q1 results will be slightly below last year.

"In light of the extraordinary uncertainty surrounding an imminent war with Iraq, we have been experiencing a softening of advertising sales over the past four weeks as advertisers try to ascertain the duration of the conflict and its possible effect on their business," said CEO Joel Hollander in a company statement.

In updating its guidance, the company said it now expects Q1 revenues and operating cash flow to come in slightly below Q1 of last year. For all of 2003, Westwood is now looking for revenue growth in the low to mid single digits, down from the previous guidance of mid single digits, and operating cash flow growth in the high single digits, down from the previous forecast of double digit growth.

"Our advertisers are telling us that they believe they will return to normal advertising levels but are uncertain about the timing," Hollander said. "We will continue to work closely with our advertisers and help them return to the market and reach their customers as soon as possible. Westwood One remains fundamentally strong and we continue to believe that the company is well positioned over the long term."