Meredith Local Media Revenue Rises 14%

Meredith Corp.’s Local Media Group — which consists of television stations and a video content creation unit that produces national broadcast and custom programming — generated $98 million in revenue in its fiscal third quarter, up 14% from the same period a year ago.

The company said growth was driven by increased retransmission-related revenues and strong performance from Meredith television stations in Nashville, Phoenix and Las Vegas.

Looking more closely at performance in the third quarter of fiscal 2014 compared to the prior-year period:

• Non-political advertising revenues grew 6% percent to $70 million. Results reflect strength from the restaurant, home and retail categories, along with one month of operations of KMOV St. Louis, which it acquired on Feb. 28.
• Digital advertising revenues grew 27%, driven by increased traffic across the desktop and video platforms, the launch of new mobile apps and one month of operations of KMOV.

• Other revenues and operating expenses both increased, due primarily to growth in retransmission revenues from subscription television operators and programming fees paid to affiliated networks.

Local Media Group operating profit in the quarter was $27 million ($28 million excluding special items), compared to $24 million in the prior-year period, and EBITDA margin was 35% in the current period.

“We’re pleased to deliver another quarter of record operating results,” said Local Media Group President Paul Karpowicz. “We’re excited to have KMOV in St. Louis as part of the Meredith portfolio. KMOV’s addition — along with improving non-political advertising, growth in digital advertising and an anticipated robust political advertising cycle — point to a strong calendar 2014 for our business.”