The depressed auto ad market is a significant contributor to the drop to $62 million from last year’s $79, it says. CEO Stephen Lacy says the company is fighting back by reorganizing its national sales efforts and centralizing “certain functions.”
Meredith Corp. today reported fiscal fourth quarter financial figures that included revenues for its broadcasting segment of $62 million versus $79 million in the prior-year period, a drop of 21.6 percent.
The unit had an operating loss of $258 million, compared to operating profit of $78 million in the prior-year period.
Fourth quarter fiscal 2009 operating loss, including special charges, was $292 million, compared to operating profit of $18 million.
The company said the depressed automotive market significantly impacted broadcasting’s performance. Meredith’s automobile advertising revenues declined more than 55 percent in the fourth quarter, accounting for approximately half of non-political advertising declines in both periods.
“Despite the current advertising weakness, television remains the most powerful and efficient way for advertisers to reach American consumers,” said Meredith President-CEO Stephen M. Lacy. “To combat lower advertising revenues, we are pursuing multi-platform marketing solutions for clients similar to our publishing business, have reorganized our national sales activities and are centralizing certain functions. We are encouraged by continued growth in our consumer connection, higher revenues at Meredith Video Solutions and increased retransmission fees.”