Granite Revenues Up Slightly - Broadcasting & Cable

Granite Revenues Up Slightly

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Granite Broadcasting said Wednesday that its second quarter net revenue was up .8% to $26.9 million, with broadcast cash flow up slightly.

The company said the automotive ad market was soft and that nation advertising revenue and network compensation were down, offset by local and political revenue gains and cost-cutting at the stations. For the first half, Granite revenues were up 7% to $51.7 million.

Last month, Granite put the kibosh on a deal to sell stations in Detroit and San Francisco.

The company decided to would keep WMYD (formerly WDWB) Detroit, but is shopping KBWB San Francisco. The latter's results were excluded from Granite's quarterly numbers becuase it is on the block.

As the call-letter change suggests, the Detroit station is a WB affiliate changing to My Network TV when the net launches and WB folds in September.

Granite had been trying to sell the two stations to pay off debt and avoid potential bankruptcy, but reached an agreement at the beginning of last month on a new senior credit facility that would pay off the interest payment due June 30.

Once the stations had not closed by then, Granite had the option of backing out. Once it had the money in hand to meat the debt payment, it made less sense to sell the Detroit station, which has the MyNetworkTV affiliation and is seen as an asset. KBWB is losing its WB affiliation in the fall and is in a tougher situation.

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