12.05.2007 10:18 PM
'08 Outlook Bullish for Local, Better for Spanish-Language Stations
Bear Stearns analyst Victor Miller said political ad spending could boost local TV revenues by as much as 8 percent in the coming year. Coincidentally, the main theme of the year will be disruption, Miller wrote in a summary of a Bear Stearns hosted conference call.
"Disruption in this group can be seen in lower disposable income from higher oil [prices], levered corporate balance sheets, instability in the capital markets, and audience measurement issues," he said.
Miller went on to say that his "favorite idea in broadcasting" involved which company would experience the least disruption.
"EVC fits that bill," he wrote, referring to Entravision, the Spanish-language media company that controls about 48 full- and lower-power TV stations, among other properties. "EVC has seen its historic two to three multiple point premium relative to 'English-language' broadcasters shaved to 1–1.5× despite better growth characteristics. EVC will also not likely face the disruption of new ratings methods and will allow Univision to negotiate retrans consent payments for providing programming to local cable operators."