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Tag: ABC Radio

  • Disney reports marginal two per cent rise in revenue

    Disney reports marginal two per cent rise in revenue

    MUMBAI: US media conglomerate Disney has announced that first quarter profits rose by seven per cent to $734 million. Revenues grew marginally by two per cent to $8.9 billion

    At the media networks, revenues were up six per cent to $3.7 billion, while operating income rose seven per cent to $606 million. Cable network revenues rose three per cent to $1.9 billion, but operating income fell by 15 per cent to $372 million, in part to higher production costs and new investments at ESPN, and higher programming and marketing costs at ABC Family.

    ABC’s revenues grew by nine per cent to $1.8 billion and operating income shot up by 87 per cent to $234 million, with higher prime-time advertising revenue following strong upfront sales and continued ratings gains.

    Disney CEO Robert Iger says, “I am encouraged by the solid momentum in our earnings and the financial and creative strengths that underpin these results. Our recently announced plan to acquire Pixar advances our efforts against each of that strategy. In addition, the announcement of our proposed combination of the ABC Radio business with Citadel Boradcasting underscores our commitment to maximising the value of our assets for our shareholders, while focusing our capital and management resources toward our core businessess.”

    On the film front despite The Chronicles of Narnia: The Lion, the Witch and the Wardrobe and Chicken Little revenue fell by 13 per cent to $2 billion, while operating income fell by 60 per cent to $128 million. The company attributed the quarter’s results to declines in worldwide theatrical motion picture distribution, domestic home entertainment and television distribution, partially offset by an increase in international home entertainment.

    Disney however is hoping that its forthcoming films like Pirates of the Caribbean: Dead Man’s Chest and Pixar’s Cars will improve results.

    Disney also announced that it will sell its 22 ABC Radio stations and network to Citadel Broadcasting Corp. of Las Vegas in a cash and stock deal valued at $2.7 billion.

  • ABC Radio to merge with Citadel Broadcasting; Suleman to be CEO

    ABC Radio to merge with Citadel Broadcasting; Suleman to be CEO

    MUMBAI: The Walt Disney Company and Citadel Broadcasting Corporation have entered a definitive agreement to combine ABC Radio, which includes 22 radio stations and the ABC Radio Networks, with Citadel Broadcasting.

    The newly combined company, to be named Citadel Communications, will be the third largest radio group in the United States, with a strong national footprint reaching more than 50 markets.

    Following the completion of the merger, Disney shareholders will own approximately 52 per cent of Citadel Communications and The Walt Disney Company will retain $1.4 to $1.65 billion in cash depending on the market price of Citadel Broadcasting at the time of closing. The deal is structured to be tax free to Disney shareholders.

    Citadel shareholders will own the remaining 48 per cent of the combined company. Valued at approximately $2.7 billion, the deal is expected to be completed by the end of the year, subject to regulatory approvals.

    “Our ABC Radio business represents a premier set of assets that have been exceptionally well-managed. ABC Radio and Citadel are a strong strategic fit that will create one of the country’s largest radio station groups. With this merger we have a unique opportunity to offer Disney shareholders ownership in a new radio leader that will be well positioned for long-term success,” said The Walt Disney Company president and CEO Robert A. Iger.

    Citadel CEO Farid Suleman will be CEO and lead the management team of the new company. Suleman, a seasoned industry leader with both radio station and radio network experience, is the former CEO of Infinity Broadcasting.

    “By joining forces to form Citadel Communications, our new company can continue to deliver on Citadel’s impressive record of success as well as pursue many exciting growth initiatives in the future. We look forward to welcoming our talented new colleagues at ABC Radio who have a long history of strong market performance, and are eager to work together to integrate ABC’s top-notch assets into our new strategically enhanced radio group,” said Suleman.

    As a company focused exclusively on the radio business, Citadel Communications will have the benefit of scale in an increasingly competitive industry. The transaction gives Citadel 177 FM stations and 66 AM stations in the country’s top markets. 14 FM and 8 AM ABC radio stations in nine major markets, including New York, Los Angeles, Chicago, San Francisco and Dallas, will join Citadel Communications.

    In addition, the merger includes the ABC Radio Networks, which create and distribute programming to more than 4,000 affiliates. The programming includes popular syndicated radio programs such as Paul Harvey News and Comment, The Sean Hannity Show and The Tom Joyner Morning Show, as well as 24/7 music formats.

    The assets joining the new company had 2005 revenue of approximately $575 million and operating income of approximately $200 million.

    Listeners of ABC News Radio will continue to enjoy the same broadcasts on their favourite radio stations. Through an exclusive 10-year licensing agreement, Citadel Communications will deliver ABC News Radio programming to terrestrial radio stations. Disney will continue to retain rights to deliver ABC News content in other formats such as broadband, wireless and satellite.

    ESPN Radio and Radio Disney are not included in the transaction.

    Affiliates of Forstmann Little & Co., holding approximately 67 per cent of the shares of Citadel Broadcasting, have approved the transaction. The transaction is subject to review by the antitrust agencies, approval by the Federal Communications Commission, the receipt of a tax ruling from the Internal Revenue Service, a tax opinion from Dewey Ballantine LLP, and other customary closing conditions.

  • DD seeks I&B, IOA intervention in C’wealth Games telecast rights

    DD seeks I&B, IOA intervention in C’wealth Games telecast rights

    NEW DELHI: Fazed by high cost of acquisition, the Indian pubcaster Doordarshan has written to the government and the Indian Olympics Association (IOA) seeking intervention, if needed, in a case relating to the telecast rights of the Commonwealth Games, 2006.

    Confirming the development to Indiantelevision.com today, Prasar Bharati CEO KS Sarma said, “We have written to the sports and the information and broadcasting ministries and the IOA last week hoping some help would be forthcoming in the issue of Games telecast for which, too high a figure has been quoted.”

    According to Sarma, though Prasar Bharati, which manages DD, is negotiating through the Asian Broadcasting Union (ABU), the management committee of the Commonwealth Games 2006, to be held in Australia, is “continuing to play tough.”

    The issue also came up during a Board meeting of Prasar Bharati earlier this week where no solution could be offered.

    The organisers of the 2006 C’wealth Games feel that since Delhi is hosting the Games in 2010, DD would fall in line. “It is this attitude of the Games’ organising committee that is irksome and we have refused to negotiate with an agent for this,” Sarma added.

    Sarma is not only the chief executive of Prasar Bharati and the president of the Indian Broadcasting Foundation, but is also an important office-bearer of the multi-country apex body ABU, a powerful organisation of Asian broadcasters who wield considerable influence through their respective governments and fears of a blackout of the Commonwealth Games in Asia has been haunting the Games’ managers with ABU not willing to accept certain monetary terms.

    It has been pointed out by Sarma that a financially beleaguered Prasar Bharati would find it difficult to cough up the demanded price – over $ 5,5000 – from the organisers of Melbourne 2006. Last time round, DD had paid $ 200,000 for the rights.

    “We are a public service broadcaster, but on the other hand the government is threatening to slash financial aid too. Under such circumstances, we would need help from the government if we are to acquire the Games telecast rights for the Indian region,” Sarma counter-punched at criticism that DD ought to acquire the rights for the benefit of millions of Indians.

    Sarma also feels that the potential of netting high advertising revenue seems remote in events like Commonwealth Games.

    DD is the biggest broadcaster in India in terms of reach, covering over 90 per cent of the population through terrestrial and KU-band transmission, compared to 40-odd million of cable homes in the country.

    TV viewership in rural areas, according to latest figures collated by DD’s in-house audience research, indicates was 69.9 per cent, while in urban areas it was 59 per cent. Amongst all TV channels in rural areas, the highest viewership was for DD National (44.1 per cent), followed by its regional services.

    The Commonwealth Games has over a period of time unveiled new sponsors even as it confronts threats of a television blackout in Asia leading to a fall in revenue.

    Games chairman Ron Walker has been quoted by international media as not being too concerned by suggestions that TV rights have shot up as much as 700 per cent than what was charged for the Manchester 2002 Games and which, could result in Indian and Asian broadcasters boycotting Melbourne 2006.

    According to Walker, there was no rush to finalise negotiations. “We have put out a price and they’re all considering it, so they haven’t said no to us, they haven’t said yes to us,” ABC Radio in December had quoted Walker, who added, “Bear in mind that Delhi in India is hosting the 2010 Commonwealth Games and the transmission is vital to them.”

    Melbourne 2006 has said that it would have no trouble selling broadcasting rights to Asia despite claims that the asking price was too high. Broadcasting rights have been negotiated so far with the Nine Network in Australia, and with companies in Canada and New Zealand.

    The sponsors and partners that Melbourne 2006 has managed to rope in Include Telstra (Official Telecommunications Partner), Nestle Peters, national Visa, Australian airline Qantas, Konica Minolta, Hudson and Coates Hire.