04.08.2010 01:00 PM
Moody’s Raises Outlook on Broadcast TV
NEW YORK: Moody’s outlook on the U.S. broadcast TV sector
is now positive. The investment ratings service raised its position on the
industry today on the improving advertising environment. Moody’s now expects
industry revenues to grow in the mid-teen percentages this year, and then
remain flat into next year. The recovery of auto sector revenues is a factor as
well as improving credit conditions and revenues expected from political races
Revenue increases are expected to fully percolate to bottom lines because of
the rigorous cost-cutting that took place across the industry over the last 18
or so months.
The outlook was raised to positive from stable, where it landed last October
after a stretch at negative. Moody’s also warned of the likelihood of a
downgrade back to stable next year in the absence of political revenues and an
expected leveling off of the auto industry rebound.