Gross revenues decreased 16.2% to $28.8 million from $34.4 million a year ago. The drop is blamed on national ad money, which fell 35% and a local ad decline of 15%.
Barrington Broadcasting Group announced its financial results for the three months and six months ended June 30. Gross revenues for the quarter decreased 16.2% to $28.8 million from $34.4 million for the quarter ended June 30, 2008.
The company said the drop was primarily due to a decrease in national revenues of $3.3 million, or 35.1%, to $6.0 million and a decrease in local revenues of $3.3 million, or 15.4%, to $18.1 million.
Political revenues decreased $500,000 to $100,000.
Other revenues increased $1.5 million, or 51.8%, to $4.5 million for the quarter ended June 30, 2009.
Net revenues (gross revenues less agency commissions and other direct costs) for the quarter ended June 30, 2009 decreased 16.6%, or $4.9 million, to $24.6 million from $29.5 million for the quarter ended June 30, 2008.
Operating expenses for the quarter ended June 30, 2009, not including depreciation and amortization and an impairment of intangible assets and goodwill, decreased 13.5%, or $2.9 million, to $18.8 million from $21.7 million for the quarter ended June 30, 2008. The decrease was primarily due to workforce reductions, expenses at its WHOI Peoria, Ill., relating to a joint sales and shared services agreement with Granite Broadcasting, and renegotiation of certain contractual obligations.
Broadcast cash flow for the quarterdecreased 20.6% to $7.7 million from $9.8 million for the quarter ended June 30, 2008.
Results include results of WGTU and WGTQ, stations that Barrington programs and to which it provides support services, since April 1, 2008, the date Tucker Broadcasting of Traverse City, Inc. completed the acquisition of these stations.
Results also include results from joint sales and shared service agreements with Granite Broadcasting Corporation related to Granite’s and Barrington’s respective station operations in the Peoria, Ill., and Syracuse, N.Y., effective March 2, 2009.
“Although we have seen positive results from both revenue and cost-saving initiatives we put in place earlier in the year, overall revenue continues to be impacted by weakness in the local and national economies. However, we will continue to benefit from our bond buybacks that occurred in the first half of the year as our annual interest payments to bondholders have been reduced by approximately $7.0 million”, said K. James Yager, chief executive officer of Barrington Broadcasting.