Tribune TV Revenues Drop By $2.1M in Q2 - Broadcasting & Cable

Tribune TV Revenues Drop By $2.1M in Q2

Awaiting acquisition by Sinclair, Tribune reported TV group revenues at $466.1 million during Q2 2017
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As its sale to Sinclair Broadcast Group is being weighed by regulators, Tribune Media Wednesday reported $466.1 million in television and entertainment revenues during the second quarter of 2017, a $2.1 million year-over-year decrease.

The decrease was driven by a $17.2 million decrease in net core advertising revenue and an $8.9 million decrease in net political advertising revenue, Tribune said. Those losses, however, were largely offset by an increase in retransmission revenues of $21.7 million, or 26%, and an increase in carriage fee revenues of $1.5 million, or 5%, the company reported.

Television and entertainment segment revenues for the six months ended June 30, 2017 were $902.1 million compared to $924.0 million for the six months ended June 30, 2016, a decrease of $21.9 million, or 2%. The decrease was driven by a $35.0 million, or 6%, decrease in net core advertising and a $22.6 million decrease in net political advertising, and was partially offset by an increase in retransmission revenues of $32.4 million, or 19%, and an increase in carriage fee revenues of $4.1 million, or 7%, Tribune reported.

Related: Tribune: We're on Track to Close Sinclair Deal

TV and entertainment operating profit was $50.2 million for Q2 2017 compared to $83.3 million for the second quarter of 2016, a decrease of $33.1 million, or 40%, Tribune reported.

That decrease resulted from increased programming expenses of $34.3 million, primarily $20 million of additional expense related to the shift in programming strategy at WGN America including cancellation costs for the originals Outsiders and Underground. The remaining increase was due to $8 million of higher network affiliate fees and $6 million of higher amortization of license fees primarily related to original programming that aired in the quarter, according to Tribune.

Related: Newsmax to FCC: Deny or Dismiss Sinclair-Tribune Merger

Television and entertainment Adjusted EBITDA was $111.7 million for Q2 2017, compared to $141.7 million in Q2 2016, a decrease of $30.0 million, or 21%, also due to increased programming expenses and lower advertising revenues.

For the six months ended June 30, TV and entertainment operating profit was $70.2 million versus $142.0 million for the six months ended June 30, 2016, a decrease of $71.7 million, or 51%. Television and Entertainment Adjusted EBITDA was $186.9 million as compared to $257.7 million for the six months ended June 30, 2016, a decrease of $70.8 million, or 27%, Tribune reported.

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