Sunday, March 2, 2008

This could be a hard week at KGO and KSFO

Here's a story in Radio and Records about Citadel losses, which lists San Francisco first off as a weak market. The folks around the former ABC station, now owned by Citadel, are waiting for the other shoe to drop.

"Citadel Broadcasting today (Feb. 29) brought home a very bad report card
and the big guy, chairman of the board and CEO Farid Suleman, says things
are going to change. And change fast -- beginning this week and over the
next two weeks. It could get ugly.

Citadel had a fourth quarter net loss of $848 million, Citadel losses were
“primarily attributable to lower revenues in our San Francisco, Calif.;
Washington, D.C.; Chicago, Ill., etc.

Suleman said that Citadel began instituting major restructuring of the
company’s major markets this past week and will continue over the next two
weeks. The restructuring will “create a very significant savings in costs
and position the stations for major growth even in a zero-based growth
environment,” he said, adding that because of the changes, the company will
offer no financial guidance for the year.

“There is at least $20 million of potential cash flow from assets that are
just not producing any cash flow right now. There is another $15 to $20
million in streamlining and expense reductions to make the company more
responsive to the market,” Suleman said. “2008 is the time and it will all
be done before the end of the first quarter. “

Suleman said, “You want to get every opportunity to perform. The environment
is such that you don’t have too much time so there could be changes across
the board,” Suleman said. “The time for talk is over and it is now time for
the walk. We will have a plan to get everything done in next three to six
months and we expect to see major changes in 2009 and 2010. But everything
will be done in 2008,” Suleman concluded. "

4 comments:

Anonymous said...

Citadel has only been involved since June 2007. Why is it that KGO/KSFO did so well FOR DECADES PRIOR TO being taken over by Citadel? Now 8 months into Citadel taking over, all that money is lost or not coming in. SO, I ask -- WHAT DID CITADEL DO WITH THE MONEY? Luckoff and Swanson are the best in the business. Ken Berry is very talented and knows what he is doing. That only leaves the top brass at CITADEL to screw things up -- AND IT LOOKS LIKE THEY DID and then they BLAME THOSE THAT HAVE HAD NOTHING BUT GREAT SUCCESS for DECADES. Something doesn't smell right. Replace SULEMAN, he's the one who screwed everything up in 8 months. The other folks were successful for many, many years.

Anonymous said...

Is Citadel and Suleman ultimately in charge of the KGO Leukemia Cure-a-thon money and the KGO Thanksgiving Charity Drive funding? Will he divert that money, raised for charity, to his shareholders? CAN he do that? Have the charities received their money?

Gary Williams said...

Ferud Suleman in, Melanie Morgan out? Oh dear. There's a weeks worth of shows already in the can for the conservative fear-mongers who still have jobs.

Anonymous said...

ksfo also fired their local sales manager last friday and their general sales manager, who had been there almost 10 years quit on tuesday after getting recruited by cbs.