Media General Q4 Revenue Up 40%

"Exceptional" results after shedding newspapers; $30 million in political

By Michael Malone -- Broadcasting & Cable, 1/31/2013 9:59:55 AM

Media General, showing vitality as a pure-play broadcaster, reported fourth-quarter revenues of $108.7 million, up 40% from the same quarter the year before. Political advertising was good for $30 million, while core advertising grew 4%.

Media General's operating income of $42.3 million eclipsed the $16.3 million it reported in the fourth quarter of 2011.

The company sold its newspapers last year, the bulk of the bunch to Berkshire Hathaway, and the Tampa Tribune to Revolution Capital Group.

George L. Mahoney, president and chief executive officer, called the earnings "exceptional."

"Media General was particularly well positioned to maximize political advertising opportunities, with six of our stations located in four of the key battleground states," he said. "Broadcast cash flow in the fourth quarter was $50.4 million, with a margin of 46%."

Cable and satellite retransmission fees rose 84.3% to $9.9 million. Digital revenues increased 18.8% to $2.7 million, driven primarily by local advertising, which grew 16%.

Media General's higher station operating costs in the fourth quarter reflected, in part, increased fees for an NBC affiliation.