Broadcasting Telecasting (Oct-Dec 1962)

Continued from page 76 Network Health ■ The four radio networks and their 19 owned stations moved from red ink to black as a group in 1961 — from losses of $3 million in 1960 to a plus of $206,000 in 1961. The gain was due to a strong downhold on expenses during 1961 which permitted the networks to show a profit. Expenses declined $4.6 million (12% from the year before). The networks, including owned stations, for 1961, showed this picture: Revenues hit $61.5 million, expenses $61.3 million, leaving networks $206,000 in the black. The networks' profit actually came from their stations; network operations ran $3 million in the red. Even so, revenues from network and station sales dropped almost equally, $700,000 in each category. Independent Stations ■ The nation's 3,591 am and fm stations not owned by networks also showed a slight drop in revenues, $522 million in 1961, a decline of 1.3% from the 1960 total. Expenses rose 2.7% to $490.2 million, and income slumped 38%, to $31.8 million in 1961, compared to $51.3 million in 1960. Although more stations reported losses for 1961 than in any year in the last 25 years, two-thirds listed their deficits as less than $15,000. Interestingly, almost the same number, two-thirds, reported net income of less than $15,000. The average revenue for stations operating a full year and reporting a profit was $190,350. The average revenue for stations operating for the fullyear and reporting a loss was $110,057. Time Sales ■ Income from radio time sales in 1961 reached $617.2 million, down from 1960's $622.5 million which was the highest in the last decade. Radio stations got $35.8 million from network sales in 1961; $197.35 million from national spot, and $384 million from local spot. Local spot accounted for most of the radio stations' revenues: 62% of the total. National spot accounted for 32% of the total revenues, and network income, 6%. Overall, the top expense in radio was in the general and administrative category. This reached $197.4 million. Programming was the second highest figure in the expense ledger, $182.9 million. Selling ranked third, $101 million, and technical expenses were last, $70 million. This same ranking for expenses is true for independent radio stations (nonnetwork owned), but a different fisting occurs for network expenses. The networks' highest expense was for programming, $22.8 million. Programming also was highest for the networks' owned stations, $12 million. Nineteen stations reported profits of $500,000 or over — and all these reported revenues of $1 million or more. Twenty-nine stations showed income of $250,000-$500,000; 20 of these reported revenues of over $1 million, and nine showed revenues between $250,000 and $500,000. Four stations which showed revenues of over $1 million reported losses. Two lost between $100,000 and $250,000, and two, more than $500,000. Revenues were related to market size like this: 131 stations which operated for the full year in cities with population of 2 million and over reported average sales of $878,611 and average income before federal tax of $203,733. In areas with less than 2,500 people, 76 stations reported average revenues of $56,547 and income of $7,677. Leaders ■ New York continued to lead the nation with total radio revenues of $32.8 million. Chicago was second with $22.9 million and Los Continued on page 82 Congratulations to the Daren F. McGavren Co. on their 10th Anniversary WISN RADIO BEAUTIFUL MUSIC, BEAUTIFUL AUDIENCE BEAUTIFUL SALES RESULTS IN MILWAUKEE 80 (SPECIAL REPORT: RADIO FINANCIAL FIGURES) BROADCASTING, December 10, 1962