ACME, Granite report up revenue


Two more positive earnings reports from broadcasters today -- ACME Communications Inc. and Granite Broadcasting Corp. both reported higher revenue and broadcast cash flow in the second quarter of 2002 versus the same quarter in 2001.

ACME chairman Jamie Kellner (who also runs AOL Time Warner Inc.'s Turner Broadcasting System Inc. unit)
said talks to sell one of ACME's larger-market assets (sources said it's KPLR-TV
St. Louis) had broken off and it was unlikely that they would
rekindle, at least for now.

Kellner said the company was rethinking whether to sell it or not, but in any
case, it won't settle for anything less than "fair value" -- an indication that the
talks probably broke off over price.

Granite CEO Don Cornwell said essentially the same thing about two Granite WB Television Network
affiliates (in Detroit and San Francisco) that are on the market.

Cornwell said Granite would like to swap them for "Big Three" affiliates, but
like Kellner, he is prepared to wait for the right deal.

ACME said revenue was up 11 percent to almost $21 million, while broadcast cash flow was up 4 percent to 4.7 million.

For the first six months, revenue was up 7 percent to almost $38 million,
while cash flow was down 8 percent to $6.8 million.

Granite said its second-quarter revenue was up 6.7 percent to $32.5 million
while broadcast cash flow was up 64 percent to $7.6 million.

For the first six months, revenue was up 33 percent to $76 million and broadcast cash flow
quadrupled to $22 million.