USA upfront sales drop 20%

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The USA Networks ad sales in the upfront market are down more than 20% overall, with price declines in the low to mid-teens, according to Victor Kaufman, chief financial officer, USA Networks Inc.

Speaking to analysts during a teleconference Wednesday to review second quarter financial results, Kaufman said the company expected ad revenue to be down only slightly for the year at worst, with the third quarter being worse than the fourth quarter. The good news said Kaufman is that advertising only accounts for 15% of the company's revenues. "But we don't see a quick turnaround," in the ad market, he said.

The company's total revenue was up 21% in the quarter to almost $1.4 billion. Earnings before interest, taxes, depreciation and amortization were up 28% to $249 million.
- Steve McClellan

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