Media General Revenue Climbs 42%

Now a pure-play, Media General posts big Q3 on strength of political and Olympic advertising

By Michael Malone -- Broadcasting & Cable, 10/17/2012 10:02:48 AM

Media General, offering its first earnings report with the self-description of "broadcast television and digital media company," announced $93.8 million in third quarter revenue, up 42% from the same quarter a year ago. Nearly $20 million in political advertising paced the Media General stations.

Media General sold 63 newspapers to Berkshire Hathaway in May, and offloaded its lone remaining one, The Tampa Tribune, earlier this month.

Third-quarter income was $22.5 million, compared with $4.8 million in the 2011 third quarter.

"Operating income was more than four times last year, mostly driven by a nearly 42% increase in revenues," said Marshall N. Morton, president and CEO of Media General. "Political revenues totaled nearly $20 million and reflected the strong positions of our television stations in their markets and the presence of six Media General stations in presidential battleground states. Our eight NBC stations generated a record $15.5 million of revenues from the Summer Olympics, capitalizing on record viewership for the London Games."

Gross time sales, excluding political revenues, increased 16.8% in the third quarter. Local gross time sales increased nearly 16% while national gross sales grew 19.2%. The automotive category increased 45% due, in part, to comparisons against last year's weak spending following Japan's tsunami, and to the strength of Olympic advertising this year.

Media General's retransmission fees rose nearly 80% to $9.4 million in the quarter. Station operating costs increased 12.1% in the current quarter, mostly due to higher sales commissions.

Media General expects fourth quarter total revenues to increase 25-28% over the previous year's fourth quarter.