McGraw-Hill reported third quarter broadcast revenue to be $19.1 million in the quarter, down 23.6% from the same quarter last year. While local and national time sales declined in the quarter, McGraw-Hill said the lack of political advertising was the biggest factor in the plummet.
The company said its overall 2009 looks worse than initially forecasted. "With market conditions continuing to weaken in school education and advertising, we now expect revenue for 2009 to decline by approximately 7%," said Chairman/President/CEO Harold McGraw III. "We had previously forecasted a decrease of 5.5% to 6.5%."
McGraw-Hill’s Information & Media division, which includes broadcasting, saw revenue decline 10.1% to $238.9 million in the quarter. The overall company saw net income drop 13.9% to $336.1 million versus the same period last year, and revenue declined 8.4% to $1.9 billion.
The company owns four TV stations, including KMGH Denver and KGTV San Diego.
Management said it will continue to cut costs. "Cost containment remains a priority,” said McGraw. “In the third quarter, including the impact of a $23.4 million pre-tax restructuring charge last year, we reduced total costs and expenses by 5.4% despite a $68 million increase in incentive compensation after substantial reductions in 2008."