As it awaits a merger with Dial-Global, Westwood One reported good results for Q2. Revenues were up and net income was up even more.
The reason for the big improvement on the bottom line was the sale of Metro Traffic to Clear Channel for $104 million. That produced a $19.3 million gain for Westwood One and flipped it to net income of $14 million in Q2 from a net loss of $5.4 million a year earlier. Absent that, the improvement was only $100K.
But revenues were up 1.8% in the quarter to $40.8 million. President Rod Sherwood (pictured) attributed that primarily to strength in ad sales for the company’s news programming. The operating loss, however, increased by $2.6 million to $5.2 million. Adjusted EBITDA from continuing operations was a negative $1 million, compared to a positive $1 million a year earlier.
Sherwood said the company remains focused on operating its businesses, with the Dial-Global merger expected to close in Q4.
“In terms of the outlook, Westwood One’s revenue is pacing ahead for the second half of 2011 when compared to the same period of 2010. We were encouraged by the recent resolution of the NFL lockout in August and we’re focused on bringing our unique sports packages to our advertising customers. However, since the agreement was not reached until mid-way into the third quarter, it is possible that some substitution by advertisers into other properties may have occurred in September. Westwood One’s sports pacings are doing well for the fourth quarter period,” Sherwood said of the current environment. “However, the recent events in the economy may impact our industry in the near term and could impact our revenue if advertisers respond by decreasing their spending,” he warned.