Dear Shareholders,
In 2006, Fisher Communications became profitable from continuing operations for the first time in five years. We completed a successful transformational year, during which a strategic plan was crafted and implemented, and new processes and metrics were introduced to measure progress. We sold the Regional Radio Division and created the Spanish-Language division, called Pescador, and the Fisher Interactive Network (FIN). We over-delivered on market revenue growth at each station, reintroduced the 401(k) match, and made these changes with a minimum of disruption.
Fisher is operating some of the most important media properties in the Northwest, launching new Internet businesses, repositioning and realigning our Company for success and growth in the new media world. As consumers and advertisers shift their behavior in this digitally driven environment, it is expected that we become more innovative, responsive, and competitively daring, to better serve our customers¹ needs and drive our future as a local media company.
Fisher has a legacy of serving the community and setting the standard for innovations and journalist excellence. We envision making life better in the communities we serve by connecting and empowering people through local news and information. We made it our mission to be the premier source for local news and information where we operate. With this as our motivation, we are remaking the Company for the 21st century.
The Strategic Plan was completed early in 2006. The Plan concluded that from a base of improved operations, Fisher would acquire and generate more unique, local content; distribute this content across multiple platforms; diversify Fisher¹s geographic and network portfolio; develop and acquire targeted, addressable, consumer-based information; and leverage assets where a superior financial return or strategic benefit could be proven.
During 2006, we achieved a number of important strategic objectives. Fisher focused on improving leadership within the stations, news content, and sales initiatives. Many activities supported this focus such as developing new revenue sources, improving pricing, hiring a new national television rep firm, conducting product research, investing in our news product, establishing new financial reporting standards, and instituting ³zero based² planning. Additional Strategic Plan activities included reinventing our Internet business, rebuilding our IT base, and refurbishing our Vashon Island Teleport facility.
At Fisher, we have the best and the brightest people who are committed to quality and innovation, who have an urgency to continually refresh and reinvigorate our product, and who have the discipline of strong financial stewardship to deliver success. We have every reason to be confident that we are on the right path with a solid plan and the ability to implement.
We are proud of our heritage at Fisher, and we are also excited about shaping our future. As we said last year, Fisher has a strong backbone, new vigor, an eye on success, and competitive spirit. We plan to deliver growing results from present and future opportunities.
|
Colleen B. Brown
President and CEO |
Phelps K. Fisher
Chairman of the Board |
This letter includes forward-looking statements. These statements include, without limitation, statements about our ability to pursue new revenue and strategic opportunities, our continued focus on growth, our ability to achieve measured positive results, and our expectations about continued audience and revenue growth and long-term profitability. We have based these forward-looking statements on or current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. Important factors, including those discussed in our Annual Report on Form 10-K for the year ended December 31, 2006 under the heading ³Risk Factors², may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. We do not undertake any obligation to update any such statements or to publicly announce the results of any such revisions to any such statements to reflect future events or developments.
