Media General Forecasts 14% Broadcast Revenue Uptick in Q2TV is booming, newspapers are ailing 6/17/2010 11:15:15 AM Eastern
Media General forecasts broadcast revenues increasing nearly 14% in the second quarter, compared to the same quarter last year. That reflects strong growth in political and automotive advertising.
Media General CEO Marshall Morton shed light on the company's business prospects at the SNL Kagan TV and Radio Finance Summit in New York yesterday.
Media General expects total company revenues to climb 2% in the second quarter, compared to the same quarter last year. "This increase is attributable to strong year-over-year growth in the company's Mid-South and Ohio/Rhode Island markets, as well as higher revenues in Advertising Services," said Media General in a statement.
The company groups its assets by market, not by medium. Ohio/Rhode Island is an all-television station market, and Mid-South includes mostly television stations.
Station groups are bullish on second quarter earnings, as key advertising categories such as automotive and retail continue to thrive.
The growth in broadcast revenues at Media General will be partially offset by a decrease in publishing revenues of approximately 7%.
Morton sat on the "Developing Stations' Digital and Mobile Revenue Streams" panel at the conference yesterday. "We will be ready to offer advertisers increased reach and frequency with a younger audience," he said of mobile television. "We also expect Mobile DTV will provide neighborhood businesses with geographically targeted advertising, based on the mobile user's location.
"We believe the potential for attracting new audiences and new revenues is significant," he continued. "We have a solid history of delivering with new products and services with a strong base of local advertisers."