NAB downsizes budget

Author:
Publish date:
Social count:
0

Just like most of its members, the National Association of Broadcasters is
tightening its belt due to declining revenue.

According to NAB board sources, revenue for the current fiscal 2002 was more
than 12 percent short of budget and may be down another 7 percent in upcoming fiscal 2003
(which begins April 1).

Meeting at the Four Seasons in Palm Beach, Fla., Wednesday, the board adopted
a budget for 2002 that calls for revenue of $54.4 million, down from $58.2
million this year and the $65.3 million budgeted for this year.

By freezing hiring and eliminating some minor conferences and programs, the NAB
expects to trim expenses in fiscal 2003 to around $47 million, which would
produce a surplus of some $7 million.

That surplus would be significantly more than the $4 million to $5 million it
will end this year with, but far below the $12 million that had been
budgeted.

The sources blamed the fiscal-2002 shortfall on .

  1. disappointing revenue for the spring convention
  2. loss of $2 million in interest income due to falling interest rates;
    and
  3. the loss of $1 million in dues after Viacom Inc. yanked its TV and radio
    stations out of the organization.


But don't cry for the NAB. By accumulating surpluses over the years, it has
built a rainy-day fund of around $80 million.

NAB officials declined
comment.

Related