The gain is driven by gains in automotive and professional services advertising and a 70% rise in digital revenue.
Meredith Corp. today reported financial results for its fiscal third quarter that included revenues for its Local Media group of $78 million, up 10% from $71 million in the year-earlier period.
Expenses declined 4%, helping drive a group EBITDA margin of 37 percent.
Looking more closely at non-political advertising performance in the third quarter of fiscal 2012 compared to the year-ago period:
- Revenues rose 5 percent to $67 million, the 10th-straight quarter of year-over-year improvement. Growth was strongest at Meredith’s stations in Las Vegas (Fox), Phoenix (CBS) and Nashville (NBC).
- Automotive advertising category revenues grew 4%, on top of 13% growth in the year-ago period. Professional services, the second-largest category, grew 11%.
- Digital advertising revenues increased 70%, driven by enhanced sales initiatives and product offerings.
Other revenues grew nearly 40% in the third quarter of fiscal 2012, driven primarily by Meredith’s management of Peachtree TV (WPCH) in Atlanta, which began on March 28, 2011. Meredith Video Studios, producer of the nationally-syndicated The Better Show, also contributed to the revenue gains.
“Our Local Media group is doing an excellent job of increasing ratings and translating them into advertising revenues, consistently ranking us among the leading station groups in advertising revenue gains,” said Meredith Local Media Group President Paul Karpowicz. “Additionally, we are augmenting results with revenues from Meredith Video Studios, operation of Turner’s Peachtree TV in Atlanta, and retransmission consent fees from subscription television operators.”
Read the company’s report here.