The continuing soft ad market drops station revenue. However, revenue for its syndicated The Daily Buzz comes in 6% higher.
Acme Communications Inc. announced its financial results for the second quarter ended June 30 on Monday afternoon. They included a 23% decrease in net revenues at its television stations, attributed to “continued sharply lower advertising demand.”
The broadcaster’s net revenues from continuing operations decreased 21% to $6.9 million compared to net revenues of $8.7 million in the second quarter of 2008.
Revenues at its syndicated TV show The Daily Buzz increased 6% for the quarter on higher advertising sales driven by broader advertiser acceptance of the show.
Total operating costs decreased 65% to $7.8 million for the second quarter compared to $22.4 million for the second quarter of 2008, which included a $12.0 million charge related to the impairment of its television licenses.
Station cash-based operating expenses decreased 9%, primarily on reduced promotion and compensation expense reflecting the company’s continued efforts to reduce all discretionary costs in the face of the continued severe economic downturn.
Its resulting broadcast cash flow for the quarter was negative $173,000 compared to $936,000 for the second quarter of 2008.
Adjusted EBITDA from continuing operations decreased to negative $675,000 compared to EBITDA of $380,000 for the second quarter of 2008 on lower broadcast cash flow, offset somewhat by a 12% reduction in corporate expense.
Acme’s net loss for the second quarter of 2009 was $1.2 million, significantly less than the $11.2 million net loss for the second quarter of 2008 due to the prior year aforementioned impairment charge.
Commenting on the quarter’s results, Jamie Kellner, Acme’s chairman-CEO, said: “We continue operating in a very challenging marketplace and we are doing everything prudently possible to reduce costs to help minimize the adverse impact that this difficult economic environment is having on our financial performance. We have entered into agreements with certain of our key program suppliers to restructure our program payments which we believe, together with our current revolving credit facility, will give us financial flexibility to weather this economic storm.”