Sharply lower advertising demand results in the TV station revenue drop to $5.8 million from $7.6 million in the same period last year.
Acme Communications Inc. announced Tuesday that “continued sharply lower advertising demand” resulted in a 24% decrease in net revenues at its television stations, dropping from $7.6 million in 3Q 2008 to $5.8 million in this year’s quarter.
And its overall net revenues from continuing operations decreased 21% to $6.7 million in the third quarter ended Sept. 30 compared to $8.5 million in the third quarter of 2008.
Revenues at Acme’s syndicated The Daily Buzz increased 5% for the quarter, driven by what it called “broadening advertiser acceptance and support of the show.”
Total operating costs decreased 18% to $7.7 million for the third quarter compared to $9.4 million for the third quarter of 2008.
Station cash-based operating expenses decreased 13%, primarily on reduced promotion and compensation expense reflecting the company’s continued efforts to reduce all discretionary costs in the face of a continued severe economic downturn.
Acme posted a net loss for the third quarter of $1.4 million compared to a $1 million net loss for the third quarter of 2008.
Commenting on the quarter’s results, Jamie Kellner, Acme’s chairman-CEO, said: “Market conditions continue to be challenging, especially coupled with our larger competitors efforts to recapture share coming off a record 2008 political year. We expect, however, market revenues to decline less severely in the fourth quarter of 2009.
“Effective Oct. 1, 2009, we modified the employment arrangements of our corporate management staff, reducing base compensation by an average of 42% while allowing each of them to become non-exclusive while working a majority of their time overseeing the company’s operations.
“This move will save the company approximately $525,000 per year. We will continue to look for ways to further reduce operating expenses without jeopardizing asset value in an effort to dampen the adverse impact of reduced market and station revenues.”