Tribune TV-Entertainment 2Q Rev Up 4.4%

Tribune Media today reported second quarter 2015 results that included Television and Entertainment segment revenue of $445.6 million in the second quarter of 2015, compared to $427 million in the second quarter of 2014, an increase of $18.6 million, or 4.4%. That revenue was composed of:

• Advertising revenues of $334.6 million as compared with $329.9 million in the second quarter of 2014, representing an increase of $4.7 million, or 1.4%. Core advertising (comprised of local and national advertising revenues, excluding political revenues) increased by $7.1 million, or 2.3%. Partially offsetting the increase in core advertising was a decrease in political advertising of $5.9 million due to 2015 being an off-cycle political year.

• Local station retransmission consent fees of $70.1 million in the second quarter of 2015, compared to $57.1 million in the second quarter of 2014, an increase of $13 million, or 23%, as a result of contract renewals with distribution partners at higher rates that became effective in late 2014.

• Carriage fees of $21.6 million in the second quarter of 2015 compared to $14.6 million in the second quarter of 2014, an increase of $7.0 million, or 48%, as a result of obtaining higher rates for WGN America distribution.

Television and Entertainment adjusted EBITDA for the second quarter of 2015 was $104.3 million, compared to $140.6 million in the second quarter of 2014. Television and Entertainment adjusted EBITDA was unfavorably impacted primarily by higher amortization of programming expenses and production costs associated with planned production funding for the company’s co-owned original programming.

Digital and Data segment revenues in the second quarter of 2015 were $43.6 million, compared to $33.8 million in the second quarter of 2014, an increase of $9.8 million, or 29%. This increase included the favorable impact of the acquisitions of HWW, Baseline and What’s ON, which were consummated in the second half of 2014, as well as the acquisitions of Infostrada Sports, SportsDirect, Covers and Enswers Inc., all of which were acquired in the second quarter of 2015.

Peter Liguori, Tribune Media’s president-CEO, said: “We are making noticeable progress against our strategy to build Tribune Media for sustainable, long-term, profitable growth. Our strategy is gaining momentum and accelerating top-line growth. Today’s results reinforce our confidence that our strategy is the right one to drive long-term value for our shareholders.”

“Our Television and Entertainment segment experienced revenue growth in all key areas and the outlook remains positive. We continue to post gains in our local station business due to its unique ability to deliver content to our loyal local viewers. Our decision to focus on local news and live sports, especially in major markets, is already paying dividends as we continue to grow advertising market share and generate higher retransmission fees. We are also encouraged that WGN America’s conversion to a cable network is ahead of schedule and our investment.”

The company as a whole reported consolidated operating revenue grew 6% to $501.5 million and consolidated operating profit decreased 39% to $19.8 million.