Meredith Broadcast Revenue Up 20%

TV's "unparalleled ability to deliver" ad messages paces company

By Michael Malone -- Broadcasting & Cable, 4/29/2010 12:30:44 PM

Meredith Local Media reported revenue of $68.76 million in its third fiscal quarter, a 20% improvement over the $57.27 million it reported in the same quarter last year. The Local Media Group's operating profit was $13 million in the third quarter, up significantly from $1 million in the same quarter a year ago. 

Meredith's 12 TV stations comprise the Local Media Group.

"Our Local Media business delivered significantly improved results across the board, a reflection of improving market conditions and success at executing our performance improvement initiatives," Meredith Chairman/CEO Stephen Lacy. "Additionally, it speaks to broadcast television's unparalleled ability to deliver advertising messages to mass audiences in local markets."

Revenues from retransmission fees rose nearly 15% in the third quarter.

Meredith's National Media Group, which includes its magazine holdings, reported operating profit up 6% to $51 million.  Revenues increased 2% to $285 million.

Amidst the rebound, Lacy said the marketplace remains hard to predict. "While our advertising growth was encouraging, we are still well below historic levels established prior to the recession in both our national and local businesses," Lacy said. "The marketplace remains very volatile on both a month-to-month and client-by-client basis. Our competitive advantage lies in the strength of our brands and the relevance of our content."

Overall advertising revenue is expected to increase 7-8% in the fiscal fourth quarter, compared to the fourth quarter last year.