Political Ads Sink Young’s Q2, Too
Income-Tax Expense Increases Station Operator’s Net Loss
By Jon Hemingway -- Broadcasting & Cable, 8/9/2007 10:30:00 AM
Station operator Young Broadcasting recorded weaker results in the second quarter, primarily due to the off-election year.
Revenue in the quarter dropped 8.5% to $52.953 million from $56.755 million in the same quarter last year on a $3.2 million decline in political advertising.
Operating income was down 47% to $4.07 million from $7.66 million in Q2 2006, while operating expenses declined in the quarter by 1.6%. The company’s net loss increased to $18.18 million from $10.99 million. The loss this year was due to lower revenue, a 4.6% increase in interest expense and an income-tax expense that more than doubled to $4.85 million.
"The prospective return of political spending at unprecedented levels for an off-cycle year and upcoming negotiations with cable operators bode well for future revenues,” Young chairman Vincent Young said in a statement. “In addition, further cost containment efforts at our nine major network affiliates should continue to favorably influence our cost structure."
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