Graham 3Q TV Revenue Climbs 16%
Graham Holdings Co. reported third quarter 2020 earnings that included revenue from its television broadcasting division, Graham Media Group, of $133.8 million, an increase of 16% from $115.2 million in the same quarter of 2019.
The revenue increase is due to a $24.8 million increase in political advertising revenue and $3.1 million increase in retransmission revenues, partially offset by reduced local and national advertising demand related to the COVID-19 pandemic.
I n the third quarter of 2020 and 2019, the television broadcasting division recorded $1.2 million and $1.1 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 2020 increased 43% to $52.7 million, from $36.8 million in the same period of 2019, due to revenue increases, partially offset by higher network fees.
The company added that “while revenues and operating results continued to be adversely impacted by the COVID-19 pandemic in the third quarter of 2020, local and national advertising revenues have improved steadily throughout the second and third quarters of 2020.”
The company as a whole, Graham Holdings, had 3Q revenue of $717 million, down 3% from $738.8 million in 3Q 2019, largely due to the impact of the COVID-19 pandemic.
Revenues declined at education and manufacturing, partially offset by increases at television broadcasting, healthcare and other businesses.
The company reported operating income of $40.2 million for the third quarter of 2020, compared to $16.3 million for the third quarter of 2019. The operating income increase is driven by higher earnings in education, television broadcasting and healthcare, partially offset by declines in manufacturing and other businesses.
Graham said the coronavirus pandemic and measures taken to prevent its spread, such as travel restrictions, shelter in place orders and mandatory closures, “significantly impacted the company’s third quarter 2020 results, largely from reduced demand for the company’s products and services.
“This significant adverse impact is expected to continue in the second half of 2020, and into 2021. The company’s management is taking a variety of measures to reduce costs and capital expenditures.”
Read the company’s report here.