Media General Station Revenue Down 16% - Broadcasting & Cable

Media General Station Revenue Down 16%

Lack of political drags earnings, and special merger meeting for shareholders coming up
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Media General reported third quarter revenue of $78.5 million, down
from the $93.8 million it posted in the previous third quarter.
Political revenues in the third quarter were $1 million, compared with
$19.6 million in 2012. Station production expenses rose 1.6% in the
quarter, due primarily to increased network affiliate fees, including
reverse compensation.

Operating income was $8.2 million, compared
with $22.5 million in the third quarter of 2012, reflecting the near
absence of last year's record political and Olympics revenues. The
current quarter's operating income also included $1.2 million of
merger-related expenses, as Media General works out a merger with Young
Broadcasting.

The new company will own or operate 31
network-affiliated television stations across 28 markets, reaching
approximately 16.5 million, or 14%, of U.S. TV households. Media General
will hold a shareholders meeting November 7 meeting to vote on
merger-related matters.

Core ad sales, not including the impact of
the Olympics, increased 7.6% in the quarter. Digital revenue grew 21%
while retrans revenue increased 41% — going from $9.4 million last year
to $13.2 million in the most recent third quarter.

Media General
reported broadcast cash flow in the 2013 third quarter going up 21% from
the preceding odd year of 2011, to $23 million.

"Assuming the
FCC has approved our license transfers before our shareholders meeting,
we plan to close the transaction very shortly thereafter," said George
Mahoney, president and CEO.

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