Journal Communications Broadcast TV Revenue Soars 22.5%

National core advertising takes off on the backs of auto, supermarkets
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Journal Communications announced second-quarter broadcast revenue of $35.1 million, 22.5% better than the same quarter last year. Core revenue was up 7.1%; local core revenue dropped 2.2% while national climbed 26.2% on the backs of automotive and supermarket advertising.

Including its radio properties, Journal Communications' broadcasting revenue increased 18.4% to $54.5 million in the quarter. Revenue from radio stations increased 11.5% to $19.4 million.

Journal reported overall revenue of $95.5 million, up 6%. Publishing revenue decreased 6.9% to $41.1 million.

"Journal Communications had a strong second quarter with operating earnings up 17% driven by political and issue advertising and a continuing recovery in many of our local broadcast markets," said Steven Smith, chairman and CEO. "We were pleased to close on the purchase of our two new radio stations at the beginning of the third quarter for $11.7 million, creating a strong cluster in Tulsa. While we expect to continue to actively pursue growth opportunities in broadcast, we also expect to use our cash to pay debt and repurchase shares."

Broadcasting looks to pace Journal to positive numbers in the third quarter. "We anticipate broadcast revenue to increase in the low-double digits, compared to the prior year, driven by an improving economy, higher political and issue advertising revenue in key states and Olympic revenue at our NBC-affiliated television stations," the company said. "We anticipate publishing revenue to decline in the mid-single digits."

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