Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Jason Helfstein – Oppenheimer & Co.
Jason Helfstein – Oppenheimer & Co.
The first question, have you added or is UBC willing to add any sales people ahead of the close or are they still operating with their limited sales infrastructure?
William L. Yde, III
I think UBC is still operating under their past practices. Clearly, one of our goals will be to add additional sales people. Great Britain is suffering from tough advertising times right now and it’s very difficult to overcome that with a small staff. But, they continue to operate under their past practices until we close the transaction.
Jason Helfstein – Oppenheimer & Co.
Then, just kind of taking that further, what’s your outlook you’re seeing right now for the radio environment looking out for Australia and Canada? And, to the extent that we do see macro pressure hitting either of those countries, how much ability do you think you have to make up for perhaps pricing weakness with additional volume?
William L. Yde, III
Well, I think I’ve always believed that our product is a very efficient product and that advertising, even though it may be down in radio all over the place, we continue to grow because our advertising model is one of the most efficient ways for large advertisers to reach mass audiences and we continue to see that happen. While advertising may be down in Australia, we’re continuing to have significant growth and Canada actually had an up year I believe in radio this year, approximately 6% but we’re having phenomenal growth in Canada as well. So, the short answer to your question is I think we’re an efficient model and we’ll continue to outperform traditional media significantly.
Jason Helfstein – Oppenheimer & Co.
Then just lastly, is there any kind of – I know you guys don’t give guidance but kind of margin target that’s reasonable to think about for Canada for next year? I mean, obviously it’s going to be profitable next year but I’m just wondering could it be a double digit margin here or probably somewhere in the single digits?
William L. Yde, III
Well, I don’t think the school is exactly out on margins for Canada this year. I think we’ve got some significant growth opportunities in Canada which may affect cost structure which may affect obviously the profitability. It’s probably too early for us to give you any indication on that.
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