Graham 3Q TV Revenue Dips 5%

Graham Holdings Co. reported third quarter 2021 earnings that included revenue from its television broadcasting division, Graham Media Group, of $126.5 million, a decrease of 5% from $133.8 million in 3Q 2020.

The revenue decrease is due to a $24.1 million decline in political advertising revenue, partially offset by increased local and national advertising revenues, which were adversely impacted in 2020 by reduced demand related to the COVID-19 pandemic, increased revenue from summer Olympics-related advertising revenue at the company’s NBC affiliates, and a $2.8 million increase in retransmission revenues.

The increase in local and national advertising was from growth in the home products, health and fitness and sports betting categories.

In the third quarter of 2021 and 2020, the television broadcasting division recorded $0.1 million and $1.2 million, respectively, in reductions to operating expenses related to property, plant and equipment gains due to new equipment received at no cost in connection with the spectrum repacking mandate of the FCC.

Operating income for the third quarter of 2021 decreased 23% to $40.6 million, from $52.7 million in the same period of 2020, due to reduced revenues and higher network fees.

The company as a whole, Graham Holdings, had 3Q revenue of $809.4 million, up 13% from $717 million in the third quarter of 2020. Revenues increased at education, health care, automotive and other businesses, offset by decreases at television broadcasting and manufacturing.

The company reported an operating loss of $16.6 million for the third quarter of 2021, compared to operating income of $40.2 million for the third quarter of 2020. Operating results declined at manufacturing, television broadcasting, healthcare and other businesses, offset by an improvement at education and automotive.

Read the company’s report here.