-- Chief Financial Officer Gracia Martore, in response to a stock analyst's question yesterday about a possible dividend cut.
I've just re-read a transcript of yesterday's third-quarter earnings teleconference, and I'm left with the impression a dividend cut is more likely. That's hardly surprising: The yield is now 17%. Following are exchanges between Martore and media stock analysts.
Q: Do you have discussions around the dividend, and would you change the dividend?
Martore: I think given the current credit crisis and the economic backdrop, as with all companies in the United States, frankly, we are evaluating our capital allocation. We’ve discussed it, we will continue to discuss it with the board. We are going to weigh it against having flexibility within our balance sheet, while at the same time doing the right thing by our shareholders. But obviously when you look at our share price, we are clearly not being paid for that dividend at this point.
Q: Is that on the table in terms of cutting the dividend?
Martore: You know, as we’ve said, we talk with our board on a regular basis about capital allocation. We will be meeting with them next week and we will meet with them again in December and certainly our dividend, share repurchases, debt, our balance sheet, will all be topics of discussion.
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[Transcript: Seeking Alpha]