Acme Communications announced second quarter net revenue was $6.1 million in the first quarter, a 6% decline from the same quarter in 2009. "The decrease was driven by lower revenue shares at our stations, resulting in a 7% decline in the station group's revenues," said Acme in a statement.
The loss was partially offset by a 5% increase in revenues at Acme's daytime syndicated show, The Daily Buzz.
Station groups typically reported first quarter revenue up in the teens and 20s.
Acme's total operating costs decreased 8% in the quarter to $7.2 million.
The group is primed to sell its stations, and reorganized its corporate and local staffs two weeks ago to facilitate a sale.
Earlier this month, Acme announced a services agreement with LIN Media in Albuquerque, Dayton and Green Bay that starts July 1.
"While we are disappointed to have lost revenue share in the first quarter of 2010 compared to a year earlier, we are heartened that non-political revenues in our markets actually increased year-over-year in the first quarter 2010, the first time we've seen a rebounding market in eight quarters," said Acme President Doug Gealy, who takes over the CEO title from Jamie Kellner July 1. "This bodes well for the industry's outlook for the balance of this year and we believe, coupled with a significant amount of political spending expected in the fall, will translate into better revenues ahead for Acme's stations."
Gealy called the deal with LIN "an important and significant strategic step in moving our group to positive cash flow as we continue to seek ways to maximize profitability at out stations and seek viable exit routes for our investors."
Acme owns six stations, five of them CWs.
The group reported fourth quarter earnings down 14% in the fourth quarter of 2009.