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Cox Radio posts hefty 4Q loss on writedown while advertising revenue slows in most markets

Cox Radio Inc. reported a hefty fourth-quarter net loss on Wednesday after taking a $601.6 million charge to write down assets and as advertising revenue fell.

The owner and operator of radio stations lost $357.3 million, or $4.45 per share, in the quarter compared with a loss of $52.1 million, or 57 cents, in the same quarter a year earlier.
Cox took a charge to write down the value of Federal Communications Commission licenses and goodwill on its books. Last year’s fourth quarter also had a $117.1 million writedown.

Revenue fell by 13 percent to $99.34 million from $114.3 million.

Results missed the average forecast of analysts polled by Thomson Reuters, who were expecting a 16-cent per share profit and revenue of $102.2 million.

Cox said local advertising revenue fell by 14.4 percent while national ads declined by 10.3 percent. Internet and other revenue were down 9.4 percent.

For the year, Cox lost $404 million, or $4.80 per share, compared with a net income of $1.9 million, or 2 cents, in 2007. Revenue was $410.2 million compared with $444.8 million.

Shares of Atlanta-based Cox fell 55 cents, or 10.7 percent, to $4.60 in morning trading.

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