Signs of Recovery in Radio Revenues Expected in 2009; Some Mid-Sized Markets Holding Their Own Due to Innovation and Local Advertising Support

CHANTILLY, Va. (Business Wire EON) April 8, 2008 -- The radio industry experienced a fourth consecutive year of disappointing revenue performance in 2007, achieving a 2.3 percent decrease in radio station revenues, according to the estimates of BIA Financial Network, a leading financial and strategic advisory firm serving the media and communications industries. BIAfn's first edition of the quarterly Investing In Radio® Market Report shows that the year closed with $17.9 billion in income, slightly lower than the $18.1 billion consecutively recorded in 2006, 2005, and 2004. BIAfn predicts radio revenues will be down as much as 3.1 percent in 2008, due in large part to the economy, but will begin its rebound in 2009 as the radio marketplace improves and the industry starts to see increased income from digital opportunities online and through the airwaves.

If slow and steady wins the race, then the radio industry will prove its continued value as it begins rolling out new programming and offerings to its vast listenership.

The top five markets by 2007 revenue were Los Angeles ($1.1 billion), New York ($755 million), Chicago ($555 million), Dallas-Ft. Worth ($416 million), and Atlanta ($398.5 million). BIAfn notes that small and mid-size markets have retained some stamina due to the value of radio stations recognized by local advertisers. Examples include: Wilkes-Barre, PA (an 8 percent increase), Des Moines, IA (a 6 percent increase) and Poughkeepsie, NY (a 5.4 percent increase). Parts of Texas have also remained strong, a reflection of their local economies.

“While it has been a rough several years for radio the efforts it is making to engage its listeners online and through the digital airwaves will hopefully come to fruition in the next few years,” said Mark R. Fratrik, Ph.D., Vice President, BIA Financial Network. “If slow and steady wins the race, then the radio industry will prove its continued value as it begins rolling out new programming and offerings to its vast listenership.”

The following link is for a chart showing the percentage of changes in radio stations revenue from the past five years and BIAfn's expectations for the coming five years. http://www.bia.com/images/Historic%20Radio%20Revenue%20April%2008.gif

BIAfn also notes in its first edition of Investing In Radio® Market Report for 2008 that radio transactions in 2007 were led by sales in medium and small radio, as well in unrated markets. More than 316 radio stations were sold in markets ranked 201 and above and nearly 500 radio stations in unranked markets were sold.

The following link is for a chart showing the number of radio stations sold over the last three years by market size (note that the Clear Channel privatization sale is not included in the market size totals). http://www.bia.com/images/Radio%20Station%20Deals%20April%2008.gif

“Transactions in 2007 demonstrated continued strategic repositioning in the market by stations and ownership groups,” said Dr. Fratrik. “Most recognize the potentials for future growth and are positioning themselves now in markets and regions where they see long-term station values.”

A comprehensive profile of all 299 radio stations markets is available in the first edition of the quarterly Investing In Radio® Market Report and the new 2008 Investing In Radio® Ownership Report published by BIAfn. Both publications are part of the Investing In financial guide series that includes market trend analysis, demographic and economic overviews, competitive overviews, technical data, ownership data, pending and completed transactions, and Arbitron ratings. Information on these publications is available on the BIAfn website at http://www.bia.com/publications_reference_radio.asp.

BIAfn also publishes investment reference guides and provides data services for the television and newspaper industries. For more information, call 800.331.5086 or email info@bia.com.

About BIA Financial Network, Inc.

BIA Financial Network, Inc., (BIAfn), has served the media, telecommunications and technology industries for more than two decades with financial and strategic advisory services, as well as a comprehensive array of research and investment resources. In addition to providing competitive and comparative information and analysis, BIAfn is also the nation's leading communications appraisal and valuation firm. Its affiliated company, BIA Capital Strategies, provides merger and acquisition advice, and arranges equity and debt funding. BIA Digital Partners LP provides subordinated debt and preferred equity investments to medium stage communications companies. Additional information is available at www.bia.com.

Release Summary:

The radio industry experienced a fourth year of disappointing revenue performance in 2007, achieving a 2.3 percent decrease in station revenues, according to BIA Financial Network, a financial and strategic advisory firm.

KEYWORDS: analysts, arbitron, broadcasting, business analysts, financial, financial analysts, intelligence analysts, radio, radio broadcasting, radio stations, revenues, valuations

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